CGG Swings to Q2 Profit
French geoscience expert CGG has reported net profit of $49 million for the quarter ended June, 2018, against net loss of $170 million same time last year.
For the second quarter 2018, the company generated $314 million in revenue and operating income of $26 million, against revenue of $350 million and operating loss of $98 million in the prior-year comparable period.
Result for the first half of 2018 was profit of $696 million, backed by financial restructuring impact in the first quarter of this year, on revenue of $560 million, against loss of $315 million on revenue of $600 million.
Net debt was $716 million at the end of June 2018, with liquidity of $447 million.
Commenting on these results, Sophie Zurquiyah, CGG CEO, said: “The second quarter results were in line with our expectations with a stable EBITDAs margin year-over-year. SIR performed well and Multi-Client after-sales were particularly high with significant contribution from the North Sea. Prefunding was low, primarily as a result of regulatory delays. Equipment saw strong volume increase and returned to breakeven. Contractual Data Acquisition activities were still under pressure with continued low prices.
“Priority is to focus on cash generation, and specifically this quarter cash consumption was limited due to rigorous management of working capital.
“In the context of a gradual market improvement, while clients maintain a cautious approach to spending, we remain on track to meet our targets for 2018.”