CGG Swings to Profit After Restructuring

French geoscience expert CGG has reported net profit of $647 million for the quarter ended March 31, 2017, against net loss of $145 million same time last year.

For the third quarter 2017, the company generated $246 million in revenue and operating income of negatine $67 million, against revenue of $249 million and operating income of negative $97 million in the prior-year comparable period.

During Q1 2018 CGG completed its financial restructuring. The settlement-delivery of all securities and instruments resulted in a total equity increase of close to $2.1 billion.

Group gross debt was $1.197 billion at the end of March 2018. Available cash was $538 million and Group net debt was $659 Million.

The Group’s liquidity amounted to $538 million at the end of March 2018.

Commenting on these results, Sophie Zurquiyah, CGG CEO, said:

“Our first quarter results are in line with expectations, with solid revenue growth and an improvement in our EBITDAs margin compared to the first quarter of 2017. These results continue to confirm an upward trend initiated in 2017 that is bringing improved volumes to GGR and Equipment. Contractual Data Acquisition activities remain challenged by low demand and deteriorated price conditions.

In the current context of strengthening oil prices, we observe a gradual market improvement, even as the major oil companies remain very cautious in their spending. In this environment, we confirm our revenue growth and EBITDAs margin targets for 2018.

The restructuring of CGG was successfully completed at the end of February and our balance sheet has been restored. My ambition, as the new CEO, and with the commitment of all our teams, is to return CGG to a business of sustainable and profitable growth, paving a new path to success for all our shareholders, clients and employees.”

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