CGG Revenues Up 11 Pct (France)

CGG announced today its non-audited first quarter 2013 consolidated results. All comparisons are made on a year-on-year basis with CGG 2012 results and before the acquisition of Fugro Geosciences.

The company reports an excellent start to the year with an EBIT at $162 million including a $35 million positive non-recurring impact from the Fugro Geosciences deal. Group Revenue grew by 11%, while the Group EBIT margin was 19% or 15% without the positive non-recurring impact from the Fugro Geosciences deal. Also the company reports strong EBIT margins from Geology, Geophysics & Reservoir (GGR) division at 31% and Equipment division at 28%

The Acquisition division’s EBIT margin was 8% despite difficult safety conditions in North Africa. The company reported net income of $79 million.

The backlog at the end of March was $1.4 billion, up 11% compared to the backlog of CGG stand alone at the end of December. It includes the order book of the Fugro Geosciences businesses and excludes the backlog of the Shallow Water/Ocean Bottom Cables (SWOBS) business.

CGG CEO, Jean-Georges Malcor, commented:

“The positive impact of our 2010-2012 performance plan, the close monitoring of our operations and all our efforts to achieve technological and commercial differentiation have enabled the CGG Group to deliver a better than expected start to the year and a promising first quarter result. Group revenue increased by 11% and the EBIT margin stands at 15% not including the positive impact of non-recurring elements relating to the Fugro Geosciences deal.

“The integration of Fugro Geosciences, since 1st February, is on track and progressing well as planned. The vessels have now been integrated into the CGG fleet and the high 93% production rate in the first quarter demonstrated the good operating performance of the entire fleet and of the newly acquired vessels in particular. Our Seabed Geosolutions Joint-Venture with Fugro, a world leader in seismic seabed acquisition, has been operational since 16th February and has already been awarded significant commercial contracts. In the new GGR division (Geology, Geophysics & Reservoir), the teams are now fully integrated and the Group now benefits from Robertson technological leadership and capabilities, from a leading position in Imaging, from a complete offer in Reservoir Characterization with Jason and Hampson-Russell and from an additional data management business. De Regt adds to Sercel’s range of products in the domain of submarine cable systems.

“Our results are now reported for three divisions (Equipment, Acquisition and GGR) in order to showcase the diversity of our businesses, demonstrate their value and give the market better insight.

“The outlook for 2013 remains strong and our Geosciences businesses are well positioned to meet our clients’ expectations as they face new geological challenges and the need for a better understanding of reservoir behavior. We confirm our 2013 objectives of 25% growth in Group revenue, an improvement in our EBIT margin, generation of positive free cash flow and an increasing return on capital employed.”

[mappress]

Press Release, May 03, 2013