OREANDA-NEWS. Active Cash and Cost Management in Challenging Market Environment.

Q2 Revenue at \\$473m down (17)% q-o-q in challenging market conditions

  • Data Acquisition down to \\$223m due to weak pricing conditions in Marine and low fleet availability rate
  • Equipment down to \\$107m due to reduced volumes
  • GGR up at \\$257m, driven by sustained SIR activity and solid Multi-Client sales at \\$120m up, 21% q-o-q, with a high 106% prefunding rate
Operational performance backed by the efficient rollout of our Transformation Plan
  • Cost reduction plan on track
  • Fleet production rate at historic high level of 94%
  • Group Operating Income1 at \\$(25)m and EBIT1 at \\$(9)m
    • Data Acquisition: negative marine margin but positive contribution from the other businesses
    • Equipment: positive performance with a 6% margin
    • GGR: solid and resilient operational margin at 21%
Strong Cash management and Capex discipline Extended Debt Profile
  • EBITDAs1 at \\$112m and Cash Capex at \\$115m, down 55% y-o-y
  • Q2’15 Free Cash Flow1 at \\$(64)m and H1’15 FCF1 at \\$(83)m versus \\$(204)m in H1 last year
  • End-of-June Net Debt/EBITDA ratio at 2.9x. Covenant cap raised to 4.0x until mid-2016
  • Successful 2019 convertible bonds Public Exchange Offer, pushing back the next main debt installment to 2020
  • Additional \\$50m cut in full-year 2015 total Capex
1Figures before Non-Recurring Charges related to the Transformation Plan PARIS, France – July 31st 2015 – CGG (ISIN: 0000120164 – NYSE: CGG), world leader in Geoscience, announced today its non-audited 2015 second quarter results.

Commenting on these results, Jean-Georges Malcor, CGG CEO, said:

“We operated this quarter in a very challenging business environment. Equipment and Data Acquisition revenue were down, notably due to strong pressure on marine pricing. However, GGR is up sequentially, due to strong Multi-Client sales and a high prefunding rate.

The efficient rollout of our Transformation and cost reduction Plan is on schedule. All our activities except for marine Data Acquisition made positive contributions to our operating result this quarter.

While the market remains uncertain, we stay focused on tight cash management with further reductions in our annual Capex spending. The success of our 2019 convertible bond Public Exchange Offer and the renegotiation of our covenants improved our financial flexibility and also helped to strengthen our balance sheet.With our operating performance, the mobilization of our teams around the world, the first positive results of our Transformation Plan and the rebalancing of our portfolio of activities, we have improved our ability to weather the current difficult market conditions the industry is facing.”

About CGG:

CGG is a fully integrated Geoscience company providing leading geological, geophysical and reservoir capabilities to its broad base of customers primarily from the global oil and gas industry. Through its three complementary business divisions of Equipment, Acquisition and Geology, Geophysics & Reservoir (GGR), CGG brings value across all aspects of natural resource exploration and exploitation.

CGG employs over 8,500 people around the world, all with a Passion for Geoscience and working together to deliver the best solutions to its customers.

CGG is listed on the Euronext Paris SA (ISIN: 0000120164) and the New York Stock Exchange (in the form of American Depositary Shares. NYSE: CGG).