CGG Lays Off 930 and Reduces Fleet to 5 Vessels
French seismic contractor, CGG, will be reducing its global workforce by additional 930 positions, as part of its transformation plan, the company said today during third-quarter earnings presentation.
Furthermore, in the third quarter 2015, as a result of deterioration of market conditions and the reduction in its fleet, CGG booked assets impairment & write-off and non-recurring charges (NRC) of approximately $1 billion.
In the third quarter 2015, CGG generated revenues of $470 million, down 32 per cent compared to Q3 2014 ($694 million) and relatively flat quarter-over-quarter.
The company recognised net loss of $1.07 billion after NRC.
Furthermore, the company has downsized its marine 3D fleet from 11 to 5 vessels and said that 3 vessels were already cold-stacked by October-end and there are 3 more to come.
Jean-Georges Malcor, CGG CEO, said: “Anticipating market conditions that continue to deteriorate in Q4 and that could remain at such levels for longer, we intend to strengthen this strategy which has been implemented over the last two years. This new major step in our transformation will mainly translate into the resizing of our marine fleet to five vessels, two thirds of their capacity being dedicated to multi-client programs.”
CGG reported backlog at $821 million as of October 1, 2015 and marine fleet coverage at 92% in Q4 2015.