CGG: CGG Provides Q2 & Full Year 2021 Financial Update

Rhea-AI Summary

CGG reports a Q2 2021 segment revenue estimate of approximately $158 million, with Geoscience expected at $73 million, Multi-Client at $37 million, and Equipment at $48 million. The group backlog increased by 4% to $360 million year-on-year. Full year revenue forecast remains flat, with EBITDA around $310 million due to slow recovery in Multi-Client sales. However, CGG expects positive net cash flow in 2021, supported by asset sales and increased spending going into 2022.

Positive

• Q2 2021 revenue expected at $158 million.
• Group backlog increased 4% to $360 million.
• Forecast 25% growth in Equipment sales year-on-year.
• Positive net cash flow anticipated in 2021.

Negative

• Flat full year revenue forecast despite strong oil prices.
• Slow recovery in Multi-Client data purchases, especially from IOCs.

CGG Provides Q2 & Full Year 2021 Financial Update

Paris, France – July 9, 2021

Second quarter 2021 segment revenue update

CGG anticipates Q2 2021 segment revenue at around $158 million.

• Geoscience segment revenue is expected to be around $73 million,
• Multi-Client segment sales are expected to be around $37 million, as sales slipped into H2 2021 despite commercial interest from the clients,
• Equipment segment sales are expected to be around $48 million.
  
  

Group segment backlog

Group segment backlog as of July 1, 2021 stands at $360 million up 4% compared to $348 million last year.

Full year 2021 revised financial objectives

In the context of strong oil price but delays in spending by our clients, CGG is expecting in 2021 a gradual recovery in Geoscience activity quarter after quarter, around 25% growth in Equipment sales year-on-year, Multi-Client cash capex of around $165 million with over 75% prefunding and lower than originally expected Multi-client after-sales, up year-on-year.

CGG thus anticipates full year 2021 segment revenue to be flat year-on-year and segment EBITDAs to be around $310 million impacted by a slow recovery in multi-client data purchases, mainly by IOCs.

2021 Net cash flow to remain positive

The planned asset monetization and sale of businesses held for sale are progressing well and on track to close in early Q4. Overall, CGG is expecting to generate positive net cash flow in 2021.

Commenting on this update, Sophie Zurquiyah, CGG CEO, said:

“In H1 2021 the increase in oil price did not translate yet into recovery of multi-client after-sales to our clients, especially the IOCs. Demand for our technologies remains strong and will benefit our Geoscience and Equipment businesses, as well as our ongoing multi-client programs which are positioned in the most attractive basins. We believe that we are progressively entering a positive cycle with increasing customers’ spending in our markets going forward in the latter part of this year and into 2022.“

Second quarter 2021 results and conference call

CGG will announce its second quarter 2021 results on Wednesday July 28^th, before the opening of the Paris stock exchange:

• The press release and the slide presentation will be made available on our website www.cgg.com at 7:00 am.
• An English language analysts conference call is scheduled the same day at 8:00 am (Paris time) – 7:00 am (London time)

To follow the conference call, please access the audio webcast from your computer at www.cgg.com

Please dial 5 to 10 minutes prior to the scheduled start time the following numbers:

France call-in:	+33(0) 1 70 70 07 81
UK call-in:	+44(0) 844 4819 752
Access Code:	9761434

A replay of the conference call will be made available the day after for a period of 12 months

About CGG

CGG (www.cgg.com) is a global geoscience technology leader. Employing around 3,700 people worldwide, CGG provides a comprehensive range of data, products, services and solutions that support our clients to more efficiently and responsibly solve complex natural resource, environmental and infrastructure challenges. CGG is listed on the Euronext Paris SA (ISIN: 0013181864).

Contacts

Group Communications & Investor Relations Christophe Barnini Tel: + 33 1 64 47 38 11 E-Mail: christophe.barnini@cgg.com

Attachment

• CGG - Press Release pdf version

FAQ

What is CGG's Q2 2021 revenue estimate?

CGG anticipates Q2 2021 segment revenue to be around $158 million.

What are the expected revenues for CGG's segments in Q2 2021?

Geoscience revenue is expected at $73 million, Multi-Client at $37 million, and Equipment at $48 million.

What is CGG's full-year revenue forecast for 2021?

CGG expects full-year segment revenue to be flat year-on-year.

What is CGG's estimated EBITDA for 2021?

CGG anticipates segment EBITDA to be around $310 million.

Is CGG expecting a positive net cash flow in 2021?

Yes, CGG expects to generate positive net cash flow in 2021.