CGG Announces its Q1 2023 Results
A strong
start to the
year :
Revenue at
$210m,
up
37%
y-o-y
Ebitda at
$66m,
up
71%
y-o-y
PARIS, France – May 3, 2023 –
CGG (ISIN: FR0013181864), a global
technology and high-performance computing (HPC)
leader, announced today its first quarter 2023
non-audited results.
Commenting on these results, Sophie
Zurquiyah, CGG CEO, said:
“We delivered a strong start to the year,
supported by robust performance in Geoscience, increased Earth Data
sales, mainly in the Gulf of Mexico, and expected equipment
deliveries in Sensing and Monitoring. I was pleased to see the
continued progress of our Beyond the Core activities during the
quarter, especially the signature of our first external HPC &
Cloud Solutions contract, with BioSymulitics, supplying specialized
HPC services to support their AI-enhanced molecular Pharma
modelling.Looking ahead, our clients are ramping up their
longer-term exploration efforts with increasing emphasis on
efficiency, effectiveness, and lowering their carbon footprint.
Based on the market leading position of our advanced technology,
across all Business Lines, and the continued growth of the digital
and decarbonization markets, CGG is well positioned to answer the
needs of our clients, reinforcing our confidence in delivering our
2023 objectives.”
Q1 2023:
A strong start to the year
-
IFRS figures: revenue at $178m, EBITDAs at $34m,
OPINC at $7m
-
Segment revenue at
$210m, up 37%
year-on-year.
-
Geoscience at $79m, up 5% year-on-year. Sustained growing activity
worldwide and increased level of order intakes, up 31%
year-on-year.
-
Earth Data at $65m, up 47% year-on-year, as clients are returning
to exploration. Prefunding revenue at $35 m and after-sales stable
year-on-year at $30m.
-
Sensing and Monitoring at $66m, up 95% year-on-year. Better quarter
than anticipated thanks to early streamer equipment deliveries.
Significant commercial opportunities for land equipment and OBN
sales.
-
Segment EBITDAs at
$66m up 71%
year-on-year, a 31% margin.
-
Segment Operating
income at $13m.
-
Group Net loss at
$(16)m.
Cash flow and
balance
sheet
-
Net cash flow at
$1m including $(4)m negative
change in working capital & provisions.
-
Cash liquidity of
$301m as of March 31, 2023,
excluding $95m
undrawn RCF.
-
Net debt before IFRS 16 at
$905m as of
March 31, 2023.
Post closing event
- On April 5, Fitch Ratings
has upgraded CGG SA's to 'B' from 'B-',
and its USD500 million and EUR585 million notes due 2027's
seniorsecured rating to 'B+' from 'B'. The Recovery Rating on the
notes is 'RR3'. The Outlook on the Long-Term IDR is Stable.
|
Key Figures -
First Quarter
2023
Key Figures IFRS - QuarterIn million
$ |
2022Q1 |
2023Q1 |
Variances % |
Operating revenues |
175 |
178 |
2% |
Operating income
/ (loss) |
11 |
7 |
(40%) |
Equity from investment |
0 |
0 |
- |
Net cost of financial debt |
(26) |
(24) |
7% |
Other financial income / (loss) |
7 |
3 |
(59%) |
Income taxes |
(9) |
(1) |
83% |
Net income /
(loss)
from continuing operations |
(16) |
(16) |
3% |
Net income / (loss) from discontinued operations |
(2) |
(0) |
93% |
Group net income / (loss) |
(19) |
(16) |
14% |
Operating cash flow |
130 |
54 |
(58%) |
Net cash flow |
68 |
1 |
(99%) |
Net debt |
925 |
994 |
7% |
Net debt before lease liabilities |
807 |
905 |
12% |
Capital employed |
1,917 |
2,035 |
6% |
Key Segment Figures -
First Quarter
2023
Key Segment Figures - QuarterIn million
$ |
2022Q1 |
2023Q1 |
Variances % |
Segment revenue |
153 |
210 |
37% |
Segment EBITDAs |
39 |
66 |
71% |
EBITDAs margin |
25% |
31% |
6 bps |
Segment operating income /
(loss) |
(5) |
13 |
- |
OPINC margin |
(3%) |
6% |
9 bps |
IFRS 15 adjustment |
16 |
(6) |
- |
IFRS operating income /
(loss) |
11 |
7 |
(40%) |
Operating cash flow |
130 |
54 |
(58%) |
Segment net cash flow |
68 |
1 |
(99%) |
Key figures bridge: Segment to IFRS - First
Quarter 2023
P&L itemsIn million $ |
Segment figures |
IFRS 15 adjustment |
IFRS figures |
Total revenue |
210 |
(32) |
178 |
OPINC |
13 |
(6) |
7 |
|
|
|
|
Cash Flow Statement itemsIn million
$ |
Segment figures |
IFRS 15 adjustment |
IFRS figures |
EBITDAs |
66 |
(32) |
34 |
Change in working capital & provisions |
(4) |
32 |
28 |
Cash provided by operations |
54 |
- |
54 |
|
|
|
|
Earth Data Data Library
NBVIn million $ |
Segment figures |
IFRS 15 adjustment |
IFRS figures |
Opening balance sheet , Jan 1st 23 |
283 |
109 |
392 |
Closing balance sheet , Mar 31th 23 |
291 |
133 |
424 |
First Quarter
2023 Segment Financial
Results
Digital, Data and Energy
Transition
(DDE)
Data, Digital & Energy Transition
(DDE)In
million $ |
2022Q1 |
2023Q1 |
Variances % |
Segment revenue |
119 |
144 |
21% |
Geoscience |
75 |
79 |
5% |
Earth Data |
44 |
65 |
48% |
Prefunding |
14 |
35 |
- |
After-Sales |
30 |
30 |
- |
DDE proforma |
119 |
144 |
21% |
Segment EBITDAs |
57 |
71 |
24% |
EBITDAs Margin |
48% |
49% |
1 bps |
Segment operating income |
22 |
25 |
12% |
OPINC Margin |
18% |
17% |
(1) bps |
Capital employed (in billion $) |
1.5 |
1.5 |
- |
Other Key Metrics |
|
|
|
Earth Data cash capex ($m) |
(33) |
(28) |
(16%) |
Earth Data cash prefunding rate (%) |
42% |
126% |
84 bps |
Digital,
Data and Energy Transition (DDE)
segment revenue was $144 million, up 21%
year-on-year.
-
Geoscience (GEO)
revenue was $79 million, up 5% year-on-year.
Geoscience had a very solid activity led by all
regions. The level of commercial activity continues to be solid and
order intake was up 31% year-on-year at the end of March sustained
by demand for high-end integrated projects and disruptive imaging
technologies.
-
Earth Data (EDA)
revenue was $65 million, up 47% year-on-year.
Earth Data cash capex was $(28) million this
quarter, down (16)% year-on-year with one marine streamer program
offshore Brazil. Prefunding revenue was solid at $35 million, up
152% and prefunding rate was at 126%. After-sales were at $30
million this quarter, stable year-on-year mainly driven by the US
Gulf of Mexico.
The segment library Net Book Value was $291
million ($424 million after IFRS 15 adjustments) at the end of
March 2023.
DDE segment
EBITDAs was $71 million, up 24% year-on-year, a solid 49%
margin.
DDE segment operating
income was $25 million, up 12% year-on-year.
DDE capital
employed decreased to $1.4 billion at the end of March
2023.
Sensing and Monitoring
(SMO)
Sensing and Monitoring
(SMO)In million $ |
2022Q1 |
2023Q1 |
Variances % |
Segment revenue |
34 |
66 |
95% |
Land |
20 |
13 |
(34%) |
Marine |
6 |
34 |
- |
Downhole gauges |
4 |
6 |
53% |
Non Oil & Gas |
4 |
12 |
- |
Segment EBITDAs |
(12) |
0 |
97% |
EBITDAs margin |
(40%) |
(1%) |
35 bps |
Segment operating income /
(loss) |
(19) |
(7) |
63% |
OPINC Margin |
(64%) |
(11%) |
46 bps |
Capital employed (in billion $) |
0.5 |
0.6 |
20% |
Sensing and Monitoring
(SMO) segment revenue was $66
million, up 95% year-on-year.
-
Low level of land equipment sales at $13 million due to timing of
deliveries.
-
Marine equipment at $34 million and better than anticipated due to
early deliveries of asset of streamer for oceanographic operations.
Significant commercial opportunities for OBN equipment deliveries
over the next quarters.
-
Downhole sales were $6 million, stable year-on-year.
-
Beyond the Core revenues were high at $12 million.
SMO segment
EBITDAs was $0 million.
SMO segment operating
income / (loss) was $(7) million.
SMO capital
employed increased to $0.6 billion at the end of March
2023.
First Quarter
2023 Financial Results
Consolidated Income StatementsIn million
$ |
2022Q1 |
2023Q1 |
Variances % |
Exchange rate euro/dollar |
1.12 |
1.07 |
(4%) |
Segment revenue |
153 |
210 |
37% |
DDE |
119 |
144 |
21% |
Sensing & Monitoring |
34 |
66 |
93% |
Segment Gross Margin |
23 |
46 |
- |
Segment EBITDAs |
39 |
66 |
71% |
DDE |
58 |
71 |
23% |
Sensing & Monitoring |
(12) |
0 |
97% |
Corporate |
(5) |
(4) |
14% |
Elim & Other |
(1) |
0 |
- |
Segment operating income |
(5) |
13 |
- |
DDE |
22 |
25 |
10% |
Sensing & Monitoring |
(19) |
(7) |
63% |
Corporate |
(6) |
(4) |
30% |
Elim & Other |
(2) |
0 |
- |
IFRS 15 adjustment |
16 |
(6) |
- |
IFRS operating income |
11 |
7 |
(40%) |
Equity from investments |
0 |
0 |
- |
Net cost of financial debt |
(26) |
(24) |
7% |
Other financial income (loss) |
7 |
3 |
(59%) |
Income taxes |
(9) |
(1) |
83% |
Net income / (loss) from continuing
operations |
(16) |
(16) |
3% |
Net income / (loss) from discontinued operations |
(2) |
0 |
93% |
IFRS net income / (loss) |
(19) |
(16) |
14% |
Shareholder's net income / (loss) |
(18) |
(16) |
11% |
Basic Earnings per share in $ |
(0.02) |
(0.02) |
11% |
Basic Earnings per share in € |
(0.02) |
(0.02) |
7% |
Segment revenue was $210
million, up 37% pro-forma. The respective contributions from the
Group’s businesses were 38% from GEO, 31% from EDA (69% for the DDE
segment) and 31% from the SMO segment.
Segment EBITDAs was $66
million, up 71% year-on-year, a 31% margin.
Segment operating
income was $13 million, a 6% margin. IFRS 15
adjustment was $(6) million and IFRS operating
income was $7 million.
Cost of financial debt was
$(24) million. Other
financial
items were at $3million.
Taxes were at $(1) million.
Group net loss was $(16)
million / €(15) million. And the shareholder net
income , after taking minority interests into
account, was a loss of $(16) million.
First Quarter
2023 Cash Flow
Cash Flow itemsIn million $ |
2022Q1 |
2023Q1 |
Variances % |
Segment Operating Cash Flow |
130 |
54 |
(58%) |
CAPEX |
(42) |
(52) |
24% |
Industrial |
(4) |
(19) |
- |
R&D |
(5) |
(6) |
6% |
Earth Data (Cash) |
(33) |
(28) |
(15%) |
Marine Offshore |
(32) |
(28) |
(14%) |
Land Onshore |
0 |
0 |
- |
Proceeds from disposals of assets |
(1) |
(0) |
92% |
Segment Free Cash Flow |
86 |
2 |
(98%) |
Lease repayments |
(13) |
2 |
- |
Paid Cost of debt |
- |
2 |
- |
CGG 2021 Plan |
(7) |
(6) |
13% |
Free cash flow from discontinued operations |
2 |
1 |
(60%) |
Net Cash flow |
68 |
1 |
(99%) |
Financing cash flow |
1 |
1 |
- |
Forex and other |
- |
1 |
- |
Net increase/(decrease) in cash |
69 |
3 |
- |
Supplementary
information |
|
|
|
Change in working capital and
provisions, included in Segment Operating
Cash Flow |
90 |
(4) |
- |
|
|
|
|
Total capex was $(52) million:
-
Industrial capex was $(19) million
-
R&D capex was $(6)
million
- Earth
Data cash capex was $(28) million
Segment
free
cash
flow was $2 million, including
$(4) million negative change in working capital & provisions.
After $2 million lease repayments, $2 million other financial, $(6)
million CGG 2021 Plan cash costs, and $1 million free cash flow
from discontinued operations, Net
cash
flow was $1 million.
Balance Sheet
Group’s
liquidity amounted to
$301
million at the end of March 31,
2023, excluding
$95m undrawn
RCF.
Group gross
debt before IFRS 16 was
$1,206
million$ and net
debt was 905
million$ at the end of March 31,
2023. Group gross debt
after IFRS 16 was
$1,296
million and net debt was
$994
million at the end of March 31, 2023.
Segment leverage ratio of Net debt
to Segment adjusted
EBITDAs was
2.4x
at the end of March 2023.
Q1 2023 Conference
call
- The
press release and the presentation are available on our website
www.cgg.com at 5:45 pm (CET).
- An
English language analysts conference call is scheduled today at
6.30 pm (CET).
Participants should register for the call here
to receive a dial-in number and code or participate in the live
webcast from here.
A replay of the conference call will be made
available the day after for a period of 12 months in audio format
on the Company's website www.cgg.com.
About CGG
CGG (www.cgg.com) is a global technology and HPC
leader that provides data, products, services and solutions in
Earth science, data science, sensing and monitoring. Our unique
portfolio supports our clients in efficiently and responsibly
solving complex digital, energy transition, natural resource,
environmental, and infrastructure challenges for a more sustainable
future. CGG employs around 3,400 people worldwide and is listed on
the Euronext Paris SA (ISIN: 0013181864).
Contacts
Group
Communications & Investor RelationsChristophe
BarniniTel: + 33 1 64 47 38 11E-Mail: christophe.barnini@cgg.com
|
|
CONSOLIDATED FINANCIAL
STATEMENTS March
31, 2023
Unaudited Interim Consolidated statements of
operations
|
|
Three months ended March 31, |
(In millions of US$, except per share data) |
|
2023 |
2022 |
Operating revenues |
|
178.1 |
175.4 |
Other income from ordinary activities |
|
0.1 |
0.2 |
Total income from ordinary activities |
|
178.2 |
175.6 |
Cost of operations |
|
(138.2) |
(136.9) |
Gross profit |
|
40.0 |
38.7 |
Research and development expenses - net |
|
(6.9) |
(3.2) |
Marketing and selling expenses |
|
(9.0) |
(7.3) |
General and administrative expenses |
|
(16.5) |
(16.3) |
Other revenues (expenses) - net |
|
(1.0) |
(0.8) |
Operating income (loss) |
|
6.6 |
11.1 |
Expenses related to financial debt |
|
(25.8) |
(26.0) |
Income provided by cash and cash equivalents |
|
2.0 |
0.3 |
Cost of financial debt, net |
|
(23.8) |
(25.7) |
Other financial income (loss) |
|
2.8 |
6.9 |
Income (loss) before incomes taxes |
|
(14.4) |
(7.7) |
Income taxes |
|
(1.4) |
(8.6) |
Net income (loss) from consolidated companies before share
of income (loss) in companies accounted for under the equity
method |
|
(15.8) |
(16.3) |
Share of income (loss) in companies accounted for under the equity
method |
|
0.1 |
- |
Net income (loss) from continuing operations |
|
(15.7) |
(16.3) |
Net income (loss) from discontinued operations |
3 |
(0.2) |
(2.2) |
Net income (loss) |
|
(15.9) |
(18.5) |
Attributable to : |
|
|
|
Owners of CGG S.A |
$ |
(15.6) |
(17.5) |
Non-controlling interests |
$ |
(0.3) |
(1.0) |
Net income (loss) per share |
|
|
|
Basic |
$ |
(0.02) |
(0.02) |
Diluted |
$ |
(0.02) |
(0.02) |
Net income (loss) from continuing operations per
share |
|
|
|
Basic |
$ |
(0.02) |
(0.02) |
Diluted |
$ |
(0.02) |
(0.02) |
Net income (loss) from discontinued operations per
share |
|
|
|
Basic |
$ |
- |
- |
Diluted |
$ |
- |
- |
Unaudited Consolidated statements of financial
position
(In millions of US$) |
March 31, 2023 |
December 31, 2022 |
ASSETS |
|
|
Cash and cash equivalents |
301.2 |
298.0 |
Trade accounts and notes receivable, net |
252.3 |
308.3 |
Inventories and work-in-progress, net |
292.9 |
257.2 |
Income tax assets |
55.1 |
53.4 |
Other current financial assets, net |
- |
0.1 |
Other current assets, net |
113.1 |
99.9 |
Assets held for sale, net |
- |
- |
Total current assets |
1,014.6 |
1,016.9 |
Deferred tax assets |
63.2 |
24.2 |
Other non-current assets, net |
11.6 |
8.2 |
Investments and other financial assets, net |
18.2 |
18.4 |
Investments in companies under the equity method |
10.7 |
10.8 |
Property, plant and equipment, net |
179.1 |
167.3 |
Intangible assets, net |
578.9 |
554.2 |
Goodwill, net |
1,091.1 |
1,089.4 |
Total non-current assets |
1,952.8 |
1,872.5 |
TOTAL ASSETS |
2,967.4 |
2,889.4 |
LIABILITIES AND EQUITY |
|
|
Bank overdrafts |
- |
- |
Financial debt – current portion |
90.6 |
60.4 |
Trade accounts and notes payables |
99.0 |
92 |
Accrued payroll costs |
75.7 |
85.6 |
Income taxes payable |
22.3 |
27.2 |
Advance billings to customers |
29.0 |
29.4 |
Provisions — current portion |
17.8 |
17.6 |
Other current financial liabilities |
20.4 |
20 |
Other current liabilities |
248.2 |
222.1 |
Total current liabilities |
603.0 |
554.3 |
Deferred tax liabilities |
57.2 |
18.7 |
Provisions — non-current portion |
29.9 |
28.6 |
Financial debt – non-current portion |
1,205.0 |
1.188.8 |
Other non-current financial liabilities |
16.6 |
21.8 |
Other non-current liabilities |
14.7 |
18.4 |
Total non-current liabilities |
1,323.4 |
1.276.3 |
Common stock: 1,102,899,675 shares authorized and 712,381,115
shares with a €0.01 nominal value outstanding at March 31,
2023 |
8.7 |
8.7 |
Additional paid-in capital |
118.7 |
118.6 |
Retained earnings |
952.9 |
967.9 |
Other Reserves |
41.7 |
50 |
Treasury shares |
(20.1) |
(20.1) |
Cumulative income and expense recognized directly in equity |
(3.4) |
(3.4) |
Cumulative translation adjustment |
(97.2) |
(102.4) |
Equity attributable to owners of CGG S.A. |
1,001.3 |
1.019.3 |
Non-controlling interests |
39.7 |
39.5 |
Total equity |
1,041.0 |
1.058.8 |
TOTAL LIABILITIES AND EQUITY |
2,967.4 |
2.889.4 |
Unaudited Consolidated statements of cash flows
|
Three months ended March 31, |
(In millions of US$) |
2023 |
2022 |
OPERATING |
|
|
Net income (loss) |
(15.9) |
(18.5) |
Less: Net income (loss) from discontinued operations |
0.2 |
2.2 |
Net income (loss) from continuing operations |
(15.7) |
(16.3) |
Depreciation, amortization and impairment |
20.2 |
22.2 |
Earth Data surveys impairment and amortization |
11.3 |
31.0 |
Depreciation and amortization capitalized in Earth Data
surveys |
(4.7) |
(3.8) |
Variance on provisions |
0.4 |
(0.8) |
Share-based compensation expenses |
0.8 |
0.7 |
Net (gain) loss on disposal of fixed and financial assets |
0.1 |
(0.1) |
Equity (income) loss of investees |
(0.1) |
— |
Dividends received from investments in companies under the equity
method |
- |
— |
Other non-cash items |
(2.9) |
(6.9) |
Net cash-flow including net cost of financial debt and
income tax |
9.4 |
26.0 |
Less : net cost of financial debt |
23.8 |
25.7 |
Less : income tax expense (gain) |
1.4 |
8.6 |
Net cash-flow excluding net cost of financial debt and
income tax |
34.6 |
60.3 |
Income tax paid |
(7.1) |
1.7 |
Net cash-flow before changes in working
capital |
27.5 |
62.0 |
Changes in working capital |
27.6 |
67.8 |
- change in trade accounts and notes receivable |
88.5 |
122.5 |
- change in inventories and work-in-progress |
(31.5) |
(20.5) |
- change in other current assets |
(7.4) |
(6.7) |
- change in trade accounts and notes payable |
(10.5) |
(7.8) |
- change in other current liabilities |
(11.9) |
(19.7) |
- Impact of changes in exchange rate on financial items |
0.4 |
|
Net cash-flow provided by operating
activities |
55.1 |
129.8 |
INVESTING |
|
|
Total capital expenditures (including variation of fixed assets
suppliers, excluding Earth Data surveys) |
(24.5) |
(9.6) |
Investment in Earth Data surveys, net cash |
(27.8) |
(32.7) |
Proceeds from disposals of tangible and intangible assets |
- |
— |
Total net proceeds from financial assets |
- |
— |
Acquisition of investments, net of cash and cash equivalents
acquired |
- |
(1.4) |
Variation in loans granted |
- |
— |
Variation in subsidies for capital expenditures |
- |
(0.1) |
Variation in other non-current financial assets |
1.6 |
— |
Net cash-flow used in investing activities |
(50.7) |
(43.8) |
|
Three months ended March 31, |
(In millions of US$) |
2023 |
2022 |
FINANCING |
|
|
Repayment of long-term debt |
0.3 |
— |
Total issuance of long-term debt |
14.3 |
— |
Lease repayments |
(12.5) |
(13.1) |
Change in short-term loans |
— |
— |
Financial expenses paid |
1.0 |
(0.2) |
Net proceeds from capital increase: |
— |
0.4 |
— from shareholders |
0.1 |
0.4 |
— from non-controlling interests of integrated companies |
— |
— |
Dividends paid and share capital reimbursements: |
|
|
— to shareholders |
— |
— |
— to non-controlling interests of integrated companies |
— |
— |
Acquisition/disposal from treasury shares |
— |
— |
Net cash-flow provided by (used in) financing
activities |
2.6 |
(12.9) |
Effects of exchange rates on cash |
1.0 |
0.1 |
Impact of changes in consolidation scope |
— |
— |
Net cash flows incurred by discontinued
operations |
(4.8) |
(4.3) |
Net increase (decrease) in cash and cash
equivalents |
3.2 |
68.9 |
Cash and cash equivalents at beginning of year |
298.0 |
319.2 |
Cash and cash equivalents at end of period |
301.2 |
388.1 |
- CGG announces it Q1 Financial Results
CGG (EU:CGG)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
CGG (EU:CGG)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024