CGGVeritas announced its non-audited first quarter 2011 consolidated results. All comparisons are made on a year-on-year basis unless stated otherwise. All fourth quarter 2010 results are reported before restructuring and impairment.
Group Revenue was $728m, up 5% year-on-year and down 20% sequentially following a particularly strong fourth quarter. Seasonally low Multi-client sales and low fleet utilization contrasted with robust Sercel sales and a notable increase in Land revenue this quarter.
Group Operating Income was $23m. Sercel performance was excellent with an operating income at $95m.
Services operating income was a loss of $26m mainly related to Marine. Services were also impacted by unrest in the Middle East and North Africa. Multi-client contributions were low while the North American land winter campaign was particularly strong and Processing and Imaging sustained high levels of activity.
Net Income was negative at $37m, including one-off $25m refinancing costs.
Cash flow from operations was $202m, up 34% year-on-year following a noticeable reduction of working capital.
Net Free Cash Flow was positive at $65m.
Net Debt to Equity ratio was 38% improving sequentially from 41% at the end of 2010.
During the quarter we made significant progress on our Performance Plan:
Master and Endeavour major vessel upgrades are on schedule to be completed in the second quarter, Voyager ownership was transferred to CGGVeritas and we initiated a JV with Eidesvik for ship management.
The cost reduction program is progressing well but exposed to rising fuel costs and the weakening dollar.
Marine differentiation was strengthened technically with four BroadSeis projects awarded, and commercially with JVs announced in Russia, Indonesia and Vietnam.
Backlog as of April 1st was $1.22 billion in a market expected to progressively strengthen.
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Source: cggveritas , May 4, 2011