CGG Releases 2012 Fourth Quarter and Full Year Results, France

CGG Releases 2012 Fourth Quarter and Full Year Results, France

CGG announced its non-audited fourth quarter 2012 and full year consolidated results. 

The fourth quarter and full year 2012 results are presented before the $(48) million impact of non-recurring items related to the acquisition of the Fugro Geoscience Division.

2012 Key Figures:

– 2012 Revenue at $3.4 billion, up 7%

– Operating Income increased by 78% at $365 million, a margin of 11%

– Net Income at $123 million

– Positive free cash flow generation at $63 million

CGG CEO, Jean-Georges Malcor commented:

In 2012, CGG reported a solid performance, with revenues up 7% and operating income up 78%, in line with our objectives of growth and profitability.

The initiatives launched in 2010 as part of our Performance Plan have particularly delivered in 2012. The marine operational performance improved with high availability and production rates while the commercial and technological successes of BroadSeis, StagSeis and Sentinel RD were confirmed reinforcing our leadership in high-end seismic technology. As announced also in the Plan, the Group achieved an ambitious cost monitoring program and reduced the G&A’s expenses.

In a recovering market and fuelled by the positive impact of our plans we achieved a Group operating margin of 11%. Sercel delivered a high profitability despite a moderate market growth particularly in marine. Land and Marine contracts divisions were back to profit and our Processing, Imaging & Reservoir division increased significantly its top line and achieved an excellent operational performance. As announced early January, multi-client after-sales were lower than expected due in particular to the delay of the licensing rounds in Brazil.

Finally, the acquisition completed in just four months of the Geoscience division of Fugro and the closing of the Seabed Geosolutions Joint-Venture diversify and strengthen our business profile towards Geology and Reservoir and represents a significant step forward in the transformation of our Group into a fully integrated Geosciences company.

The growing needs of our clients for exploration in always more complex geology, for conventional and unconventional reservoir characterization and more broadly for Geoscience solutions are strong indicators of a promising 2013 market and beyond.

In this context and with a stronger portfolio of businesses, we will accelerate CGG’s transformation in 2013, to become the partner of choice for our clients with our new assets and technologies base while actively managing our balance sheet.

The CGG Group, ideally positioned on three pillar divisions, Equipment, Acquisition, and GGR (Geology, Geophysics & Reservoir), will accelerate its profitability in 2013 through revenues increase of nearly 25% year on year.”

Press Release, February 28, 2013