CGG: CGG Announces its Q1 2021 Results

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CGG announced its Q1 2021 results, highlighting a positive net cash flow of $28 million amidst a seasonal soft quarter. The company achieved $209 million in revenue, but faced a 21% year-on-year decline. Equipment performance remained solid, driven by land equipment deliveries. Successful debt refinancing of $1.2 billion improved capital structure, lowering the cost of debt and extending maturities to 2027. CGG confirmed its financial objectives for 2021, supported by improving market conditions, particularly with oil prices above $60 per barrel.

Positive

Generated positive net cash flow of $28 million.
Successful refinancing of $1.2 billion improves capital structure and reduces interest costs.
Liquidity increased to $407 million, supporting future operations.

Negative

Revenue decreased 21% year-on-year to $209 million.
Segment operating income reported a loss of $(11) million.
Group net loss reached $(81) million.

05/12/2021 - 01:30 AM

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.

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-Call period of 3 years with possibility to repay up to 10% ($120m) per year during this period
ESG-linked RCF, 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%

Key Figures - First Quarter 2021

Key Figures IFRS - Quarter
In million $

2020
Q1

2021
Q1

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