France: CGG Reports Increase in Revenue

CGG, a world leader in Geoscience announced its non-audited 2013 fourth quarter and full-year consolidated results with revenue up 2%, at $955 million.

The Company reported EBIT at $73 million before non-recurring items with EBIT margin at 7.6% and the Net income of $17 million after NRFI and before impairment & write-off.

CGG CEO, Jean-Georges Malcor commented:

“In a contrasting year with deteriorating market conditions in H2, CGG demonstrated resilience in its 2013 performance. The successful integration of the Geoscience activities within CGG reinforces the Group in a growing and profitable market segment.

“As announced during our Capital Market Day in December, we are rebalancing our portfolio of activities and implementing our 2014-2016 strategic roadmap focused on cash and profitability. The down-sizing of our Acquisition division, combined with the Acquisition market outlook, result in a $800 million impairment in our 2013 accounts. Concerning marine activity, our objective is to reduce the fleet from 18 to 13 3D high-end vessels by the end of 2016. Mid-February, the CGG Symphony has stopped operating and will be de-rigged. Concerning land activity, we have reinforced our partnership in the Middle East with ARGAS and we are restructuring our activities in North America. The restructuring costs across the 2014-2016 period are expected to remain below $100m.

“In 2014, we expect Acquisition market conditions to remain stable with however a low Q1, as already indicated. Our priorities are to deliver our plan and stay focused on tight cash management, cost reductions, and operational and commercial efficiency.

“In 2016, in unchanged market conditions, we confirm our objectives of revenues above $4bn and improved Ebit margin by 400bps compared to 2013.”

Press Release, February 27, 2014; Image: CGG