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    CGG   FR0013181864

CGG

(CGG)
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CGG : 2020 Q4 Financial Press Release (English)

05/12/2021 | 02:08am EDT

CGG Announces its Q1 2021 Results

Positive Net Cash Flow and Successful Refinancing

Seasonal Soft Quarter with Solid Equipment Performance

2021 Financial Objectives Confirmed

PARIS, France - May 12, 2021 - CGG (ISIN: FR0013181864), a world leader in Geoscience, announced today its first quarter 2021 non-audited results.

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

"With our successful refinancing we delivered the last milestone in our CGG 2021 strategy while normalizing our capital structure. We are now actively developing our new ambitions, focusing on growing our core highly differentiated businesses as the market gradually strengthens, and accelerating our growth beyond the core into sectors, including digitalization, observation & monitoring, and energy transition.

As anticipated, we continued to execute projects from our Geoscience backlog and delivered land equipment for the Saudi mega crews this quarter. Multi‐Client saw a seasonal low first quarter and some shift in timing of sales. Overall, we generated $28m of positive net cash flow this quarter. With oil price firming up above the $60/bbl level, we started to see in March a resumption in commercial activity and contract awards, which gives us confidence in our 2021 financial objectives. "

Q1 2021: A seasonal soft quarter with solid Equipment performance

  • IFRS figures: revenue at $209m, EBITDAs at $32m, OPINC at $(14)m
  • Segment revenue at $213m, down (21)% year-on-year Geoscience: Reached a low point as it continued to deliver its backlog Multi-client: Soft quarter with timing of some sales moved to Q2/H2
    Equipment: Solid operational & business performance driven by land equipment deliveries
  • Segment EBITDAs at $36m and Adjusted* Segment EBITDAs at $39m, a 19% margin due to revenue mix
  • Segment Operating Income at $(11)m and Adjusted* Segment
    Operating Income at $(12)m
  • Group Net loss at $(81)m

*Adjusted indicators represent supplementary information adjusted for non-recurring charges triggered by economic downturn.

- 1 ‐

Positive quarterly Net Cash Flow and Liquidity of $407m

  • Net Cash Flow at $28m
  • Liquidity of $407m and Net debt before IFRS 16 at $845m as of March 31, 2021

Successful $1.2Bn Senior Secured Notes Debt Refinancing

  • Normalization of capital structure through $1.2Bn equivalent refinancing in EUR and USD with a new $100m revolving credit facility (RCF)
  • Reduction of cost of debt with a blended interest rate of 8.17% and elimination of $45m per year in PIK interest
  • Extension of maturities to 2027 (6 years)
  • Non-Callperiod of 3 years with possibility to repay up to 10% ($120m) per year during this period
  • ESG-linkedRCF, aligning capital structure terms with CGG's sustainability objectives
  • Single maintenance covenant for RCF: leverage below 3.5x (2.7x end of 2020), tested when RCF is drawn by more than 40%

- 2 ‐

Key Figures - First Quarter 2021

Key Figures IFRS - Quarter

2020

2021

Variances

In million $

Q1

Q1

%

Operating revenues

253

209

(17)%

Operating Income

(40)

(14)

65%

Equity from Investment

-

-

-

Net cost of financial debt

(33)

(34)

(4)%

Other financial income (loss)

6

(38)

-

Income taxes

(5)

(5)

(12)%

Net Income / Loss from continuing

(72)

(92)

(29)%

operations

Net Income / Loss from discontinued operations

(27)

11

143%

Group net income / (loss)

(98)

(81)

18%

Operating Cash Flow

145

105

(28)%

Net Cash Flow

17

28

65%

Net debt

705

987

40%

Net debt before lease liabilities

540

845

56%

Capital employed

2,202

2,072

(6)%

Key Segment Figures - First Quarter 2021

Key Segment Figures - Quarter

2020

2021

Variances

In million $

Q1

Q1

%

Segment revenue

271

213

(21)%

Segment EBITDAs

123

36

(71)%

Group EBITDAs margin

45%

17%

(28) bps

Segment operating income

(31)

(11)

65%

Opinc margin

(11)%

(5)%

6 bps

IFRS 15 adjustment

(9)

(3)

63%

IFRS operating income

(40)

(14)

65%

Operating Cash Flow

145

105

(28)%

Net Segment Cash Flow

17

28

65%

Supplementary information

Adjusted segment EBITDAs before NRC

125

39

(68)%

EBITDAs margin

46%

19%

(27) bps

Adjusted segment operating income before

40

(12)

(130)%

NRC

Opinc margin

15%

(6)%

(28) bps

  • 3 ‐

Key figures bridge: Segment to IFRS - First Quarter 2021

P&L items

Segment

IFRS 15

IFRS figures

In million $

figures

adjustment

Total Revenue

213

(4)

209

OPINC

(11)

(3)

(14)

Cash Flow Statement items

Segment

IFRS 15

IFRS figures

In million $

figures

adjustment

EBITDAs

36

(4)

32

Change in Working Capital &

73

4

77

Provisions

Cash Provided by Operations

105

(0)

105

Multi-Client Data Library NBV

Segment

IFRS 15

IFRS figures

In million $

figures

adjustment

Opening Balance Sheet , Dec 20

285

207

492

Closing Balance Sheet , Mar 21

291

204

495

- 4 ‐

First Quarter 2021 Segment Financial Results

Geology, Geophysics & Reservoir (GGR)

Geology, Geophysics & Reservoir (GGR)

In million $

Segment revenue

Geoscience (SIR)

Multi-Client

Prefunding

After-Sales

Segment EBITDAs

EBITDAs Margin

Segment operating income

OPINC Margin

Equity from investments

Capital employed (in billion $) Supplementary information Adjusted segment EBITDAs before NRC

EBITDAs Margin

Adjusted segment OPINC before NRC

OPINC Margin

Other Key Metrics

Multi-Client cash capex ($m) Multi-Client cash prefunding rate (%)

2020

2021

Variances

Q1

Q1

%

197

100

(49)%

93

66

(29)%

104

34

(67)%

57

15

(74)%

47

19

(59)%

123

28

(77)%

62%

28%

(34) bps

(22)

(8)

63%

(11)%

(8)%

3 bps

-

-

-

1.7

1.6

(6)%

124

31

(75)%

63%

31%

(32) bps

48

(11)

(123)%

24%

(11)%

(35) bps

(67)

(30)

(55)%

85%

50%

(35) bps

GGR segment revenue was $100 million, down (49)% year-on-year.

  • Geoscience revenue was $66 million, down (29)% year-on-year.
    Geoscience continued to deliver its backlog and reached an inflection point this quarter. After a year of drastic spending cuts, clients' priorities this quarter were on development projects. Commercial activity and contract awards resumed in March, especially in North and South America, and the overall level of commercial bids was up 10% during the month of March.
    We continue to actively develop and promote our high end technology for digitalization, energy transition and monitoring markets where we have recently been awarded a few projects.
  • Multi-Clientrevenue was $34 million, down (67)% year-on-year.
    Multi-client cash capex was $(30) million this quarter, (55)% lower than in Q1 2020, as we had one marine streamer multi-client program offshore Brazil. Prefunding revenue of our multi-client projects was $15 million and prefunding rate was 50%.
    Multi-clientafter-sales were at $19 million this quarter as we saw a seasonally slow first quarter with some sales shifting into Q2/H2.
    The segment library Net Book Value was $291 million ($495 million after IFRS 15 adjustments) at the end of March 2021, split 85% offshore and 15% onshore.

GGR segment EBITDAs was $28 million and GGR Adjusted* segment EBITDAs was $31 million, a 31% margin.

- 5 ‐

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

CGG SA published this content on 12 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2021 06:07:02 UTC.


© Publicnow 2021
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Financials (USD)
Sales 2021 986 M - -
Net income 2021 -114 M - -
Net Debt 2021 980 M - -
P/E ratio 2021 -5,68x
Yield 2021 -
Capitalization 718 M 718 M -
EV / Sales 2021 1,72x
EV / Sales 2022 1,52x
Nbr of Employees 3 700
Free-Float 99,9%
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Mean consensus OUTPERFORM
Number of Analysts 11
Average target price 1,56 $
Last Close Price 1,01 $
Spread / Highest target 136%
Spread / Average Target 54,3%
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NameTitle
Sophie Zurquiyah-Rousset Chief Executive Officer & Director
Yuri Baidoukov Group Chief Financial Officer & Treasurer
Philippe Salle Chairman
Chu Ong Ting Chief Technology Officer
Michael C. Daly Independent Director
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