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CGG Announces its Q4 and Full Year 2020 Results

Nachrichtenquelle: globenewswire
05.03.2021, 07:00  |  158   |   |   

 CGG Announces its Q4 and Full Year 2020 Results

Q4 Solid Operational Performance

2021 Positive Net Cash Flow sustained by gradual recovery

PARIS, France – March 5, 2021CGG (ISIN: FR0013181864), a world leader in Geoscience, announced today its fourth quarter and full year 2020 audited results.

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

“In the particularly challenging year of 2020, which saw the collapse of the oil & gas market across the second and third quarters, we finished the year with solid fourth quarter operational performance. During 2020, we successfully completed our exit from the Acquisition business while continuing to advance our high-end Geoscience technologies for reservoir development and production. We also delivered our Multi-client surveys in the industry’s core mature sedimentary basins and released new products while reinforcing our market leadership in Equipment. Our initiatives towards energy transition are accelerating with the development and commercialization of new business offerings, along with our announced target to achieve carbon neutrality by 2050. Looking forward, as global economies continue to progressively recover and with oil price stabilizing above $50/bbl, we expect CGG’s performance to benefit from the proactive cost reduction actions and gradually strengthen in the second half of the year, delivering positive net cash flow in 2021.“

Q4 2020: Solid Operational Performance

  • IFRS figures: revenue at $217m, EBITDAs at $52m, OPINC at $(58)m
  • Segment revenue at $283m, up 42% quarter-on-quarter and down (29)% year-on-year
Geoscience: Increased software sales and sustained activity of large and dedicated imaging centers

Multi-client: Solid prefunding rate of 171% in Q4  

Equipment: Solid quarter driven by land equipment deliveries

  • Segment EBITDAs at $118m and Adjusted* Segment EBITDAs at $122m before $(4)m of non-recurring severance costs, a 43% margin
  • Segment Operating Income at $(42)m and Adjusted* Segment Operating Income at $17m before $(59)m of non-recurring charges
  • Group Net loss at $(100)m including $(61)m non-recurring charges on continuing activities and $(23)m non-recurring charges on discontinued activities
  • Group segment backlog at January 1st 2021 stands at $421m
*Adjusted indicators represent supplementary information adjusted for non-recurring charges triggered by economic downturn.

 

Full Year 2020: Financial performance hampered by Covid-19 pandemic impact

  • IFRS figures: revenue at $886m, EBITDAs at $292m, OPINC at $(173)m
  • Segment revenue at $955m, down (32)% year-on-year
  • Segment EBITDAs at $361m and Adjusted* Segment EBITDAs at $402m before $(42)m of non-recurring severance costs, a 42% margin
  • Segment Operating Income at $(164)m and Adjusted* Segment Operating Income at $48m before $(213)m of non-recurring charges
  • Group Net loss at $(438)m including $(269)m non-recurring charges on continuing activities and $(67)m non-recurring charges on discontinued activities
 

Liquidity of $385m and Net Debt (before IFRS 16) at $849m at year-end 2020

  • Q4 2020 Net Cash Flow at $(95)m including negative change in working capital of $(88)m supporting increased December sales
  • FY 2020 Net Cash Flow of $(247)m including $(89)m negative change in working capital and $(101)m non-recurring cash costs
  • Liquidity of $385m and Net debt before IFRS 16 at $849m as of December 31, 2020
CGG is in a leading position to benefit from progressive market recovery

 

With continuing acceleration of Covid-19 vaccinations world economies should continue to progressively recover from pandemic in 2021. Recent OPEC+ agreements support the rebalancing of supply and demand and Brent oil price has gradually recovered and stabilized above the $50/bbl threshold.

CGG will continue to invest in geoscience technologies that support clients’ prioritization towards reservoir development and production optimization. After a low Q1, our Geoscience activity will start recovering during the second half of the year on the back of solid demand for best-in-class subsurface imaging technologies and sustained activity with large NOCs. Our Multi-client business will reduce capex keeping its focus on expanding our unique footprint offshore Brazil and in the North Sea while reprocessing existing data libraries with our latest imaging technologies.

Our Equipment business should benefit from solid deliveries for land mega crews in Saudi Arabia in H1 and improved demand for its large portfolio of WING nodes onshore and GPR nodes offshore.

CGG continues to progressively develop its existing energy transition businesses, leveraging its core capabilities into other domains (Geothermal, Mining and SHM), expanding into areas where clients are growing (Carbon capture, utilization and storage) and hiring new talents.

 

Financial objectives: positive net cash flow in 2021


Given the context outlined above and assuming there will be no deterioration in Covid-19 pandemic and market conditions, CGG segment revenue is expected to increase by low single digits year-on-year with growth in Equipment, gradual recovery in Geoscience from H2 2021 and reduced Multi-Client prefunding revenue.

Segment EBITDAs is expected to remain stable with a less favorable business mix.

Net cash flow is anticipated to be positive. The Group will continue to focus on capital discipline and cash generation. Multi-client cash capex is expected to be reduced to around $165 million with prefunding above 75% and industrial capex is expected to be stable at around $70 million. Non-recurring cash costs are expected to come down to around $(60) million.

Key Figures - Fourth Quarter 2020

Key Figures IFRS - Quarter
In million $
2019
Q4
2020
Q4
Variances %
Operating revenues 426 217 (49)%
Operating Income 74 (58) -
Equity from Investment - - -
Net cost of financial debt (33) (34) 3%
Other financial income (loss) 2 2 12%
Income taxes 20 7 (64)%
Net Income / Loss from continuing operations 63 (83) -
Net Income / Loss from discontinued operations (37) (18) 53%
Group net income / (loss) 26 (100) -
Operating Cash Flow 179 26 (85)%
Net Cash Flow 7 (95) -
Net debt 716 1,004 40%
Net debt before lease liabilities 540 849 57%
Capital employed 2,323 2,168 (7)%

Key Segment Figures - Fourth Quarter 2020

Key Segment Figures - Quarter
In million $
2019
Q4
2020
Q4
Variances %
Segment revenue 396 283 (29)%
Segment EBITDAs 206 118 (43)%
Group EBITDAs margin 52% 42% (103) bps
Segment operating income 72 (42) -
   Opinc margin 18% (15)% -
IFRS 15 adjustment 2 (16) -
IFRS operating income 74 (58) -
Operating Cash Flow 179 26 (85)%
Net Segment Cash Flow 7 (95) -
Supplementary information      
Adjusted segment EBITDAs before NRC 206 122 (41)%
EBITDAs margin 52% 43% (90) bps
Adjusted segment operating income before NRC 72 17 (77)%
   Opinc margin 18% 6% (123) bps

Key Figures – Full Year 2020

Key Figures IFRS - YTD
In million $
2019 2020 Variances %
Operating revenues 1,356 886 (35)%
Operating Income 244 (173) -
Equity from Investment - - -
Net cost of financial debt (132) (134) 2%
Other financial income (loss) 6 (39) -
Income taxes 9 (30) -
Net Income / Loss from continuing operations 126 (376) -
Net Income / Loss from discontinued operations (188) (63) 67%
Group net income / (loss) (61) (438) -
Operating Cash Flow 751 264 (65)%
Net Cash Flow 186 (247) -
Net debt 716 1,004 40%
Net debt before lease liabilities 540 849 57%
Capital employed 2,323 2,168 (7)%

Key Segment Figures – Full Year 2020

Key Segment Figures - YTD
In million $
2019 2020 Variances %
Segment revenue 1,400 955 (32)%
Segment EBITDAs 721 361 (50)%
Group EBITDAs margin 51% 38% (137) bps
Segment operating income 247 (164) -
   Opinc margin 18% -17% (349) bps
IFRS 15 adjustment (4) (8) -
IFRS operating income 244 (173) -
Operating Cash Flow 751 264 (65)%
Net Segment Cash Flow 186 (247) -
Supplementary information      
Adjusted segment EBITDAs before NRC 721 402 (44)%
Group EBITDAs margin 51% 42% (94) bps
Adjusted segment operating income before NRC 247 48 (80)%
   Opinc margin 18% 5% (130) bps

Key figures bridge: Segment to IFRS - Fourth Quarter 2020

P&L items - Q4
In million $
Segment figures IFRS 15 adjustment IFRS figures
Total Revenue 283 (66) 217
OPINC (42) (16) (58)
       
Cash Flow Statement items - Q4
In million $
Segment figures IFRS 15 adjustment IFRS figures
EBITDAs 118 (66) 52
Change in Working Capital & Provisions (88) 66 (22)
Cash Provided by Operations 26 - 26
       
Multi-Client Data Library NBV
In million $
Segment figures IFRS 15 adjustment IFRS figures
Opening Balance Sheet, Sept 20 345 154 499
Closing Balance Sheet, Dec 20 285 207 492

Key figures bridge: Segment to IFRS – Full Year 2020

P&L items - YTD
In million $
Segment figures IFRS 15 adjustment IFRS figures
Total Revenue 955 (69) 886
OPINC (164) (8) (173)
       
Cash Flow Statement items - YTD
In million $
Segment figures IFRS 15 adjustment IFRS figures
EBITDAs 361 (69) 292
Change in Working Capital & Provisions (89) 69 (20)
Cash Provided by Operations 264 - 264
       
Multi-Client Data Library NBV
In million $
Segment figures IFRS 15 adjustment IFRS figures
Opening Balance Sheet, Dec 19 376 155 531
Closing Balance Sheet, Dec 20 285 207 492

Fourth Quarter 2020 Segment Financial Results

Geology, Geophysics & Reservoir (GGR)

Geology, Geophysics & Reservoir (GGR)
In million $
2019
Q4
2020
Q4
Variances, %
Segment revenue 275 176 (36)%
Geoscience 106 75 (29)%
Multi-Client 169 101 (40)%
Prefunding 62 70 13%
After-Sales 106 31 (71)%
Segment EBITDAs 189 108 (43)%
EBITDAs Margin 69% 61% (78) bps
Segment operating income 64 (44) -
OPINC Margin 23% (25)% (479) bps
Equity from investments - - -
Capital employed (in billion $) 1.9 1.6 (10)%
Supplementary information      
Adjusted segment EBITDAs before NRC 189 111 (41)%
EBITDAs Margin 69% 63% (58) bps
Adjusted segment OPINC before NRC 64 15 (79)%
OPINC Margin 23% 8% (168) bps
Other Key Metrics      
Multi-Client cash capex ($m) (32) (41) (26)%
Multi-Client cash prefunding rate (%) 191% 171% (204) bps

GGR segment revenue was $176 million, up 18% quarter-on-quarter and down (36)% year-on-year.

  • Geoscience revenue was $75 million, down (2)% quarter-on-quarter and down (29)% year-on-year.

Despite the general slowdown of the global economy and its negative effect on oil price and clients’ E&P spending, Geoscience production was more resilient, driven by stable activity for Naitional Oil Companies and sequential increase in GeoSoftware and Geovation sales.

CGG Geoscience technology leadership continues to be recognized by major clients.

  • Multi-Client revenue was $101 million, up 38% quarter-on-quarter and down (40)% year-on-year.

Prefunding revenue of our multi-client projects was $70 million, up 78% quarter-on-quarter and up 13% year-on-year.

We had one marine streamer multi-client program offshore Brazil and several reprocessing and reimaging multi-clients surveys this quarter.Multi-client cash capex was $(41)m and prefunding rate was high at 171%.

Multi-client after-sales were at $31 million this quarter primarily driven by Brazil, down (8)% quarter-on-quarter and down (71)% year-on-year.

The segment library Net Book Value was $285 million ($492 million after IFRS 15 adjustments) at the end of 2020, split 84% offshore and 16% onshore.

GGR segment EBITDAs was $108 million, a 61% margin.

GGR Adjusted segment EBITDAs was $111 million, a 63% margin before $(4) million of severance costs.

GGR segment operating income was $(44) million.

GGR Adjusted segment operating income was $15 million, a 8% margin before $(59) million of non-recurring charges including mainly $(29)m Multi-client library impairments mainly in Africa and Ireland.

GGR capital employed was stable at $1.6 billion at the end of 2020.

Equipment

Equipment
In million $
2019
Q4
2020
Q4
Variances, %
Segment revenue 123 108 (13)%
Land 87 87 (0)%
Marine 23 13 (43)%
Downhole gauges 9 3 (68)%
     Non Oil & Gas 4 5 19%
Segment EBITDAs 23 14 (41)%
EBITDAs margin 19% 13% (60) bps
Segment operating income 16 6 (63)%
OPINC Margin 13% 5% (75) bps
        
Capital employed (in billion $) 0.5 0.6 22%
Supplementary information      
Adjusted segment EBITDAs before NRC 23 14 (40)%
EBITDAs margin 19% 13% (58) bps
Adjusted segment OPINC before NRC 16 6 (62)%
OPINC Margin 13% 6% (73) bps

Equipment segment revenue was $108 million, up 114% quarter-on-quarter and down (13)% year-on-year. External sales were $108 million.

  • Land equipment sales represented 81% of total sales, as we delivered in Q4 over 100,000 channels worldwide. Sercel also delivered WiNG land node systems in Latin America.
  • Marine equipment sales represented 12% of total sales driven by spares sections sales of Sentinel streamers to its installed customers base.
  • Downhole equipment sales were $3 million and sales from non Oil & Gas equipment were $5 million

Equipment segment EBITDAs was $14 million.

Equipment segment operating income was $6 million.

Equipment capital employed was up at $0.6 billion at the end of 2020.


Fourth Quarter 2020 Financial Results

Consolidated Income Statements
In million $
2019
Q4
2020
Q4
Variances %
Exchange rate euro/dollar 1.10 1.18 7%
Segment revenue 396 283 (29)%
GGR 275 176 (36)%
Equipment 123 108 (12)%
   Elim & Other (2) (1) 36%
Segment Gross Margin 109 46 (58)%
Segment EBITDAs 206 118 (43)%
GGR 189 111 (41)%
Equipment 23 14 (40)%
Corporate (6) (4) 38%
   Elim & Other - - -
   Severance costs - (4) -
Segment operating income 72 (42) -
GGR 64 15 (77)%
Equipment 16 6 (62)%
Corporate (7) (4) 37%
   Elim & Other - - -
   Non recurring charges - (59) -
IFRS 15 adjustment 2 (16) -
IFRS operating income 74 (58) -
Equity from investments - - -
Net cost of financial debt (33) (34) (3)%
Other financial income (loss) 2 5 -
Income taxes 20 7 (64)%
NRC (Tax & OFI) - (3) -
Net income / (loss) from continuing operations 63 (83) -
Net income / (loss) from discontinued operations (37) (18) 53%
IFRS net income / (loss) 26 (100) -
Shareholder's net income / (loss) 25 (102) -
Basic Earnings per share in $ 0.04 (0.14) -
Basic Earnings per share in € 0.03 (0.12) -

Segment revenue was $283 million, up 42% quarter-on-quarter and down (29)% year-on-year. The respective contributions from the Group’s businesses were 27% from Geoscience, 35% from Multi-Client (62% for the GGR segment) and 38% from Equipment.

Segment EBITDAs was $118 million and Adjusted* segment EBITDAs was $122 million before $(4) million of severance costs, up 51% sequentially and down (41)% year-on-year, a 43% margin.

Segment operating income was $(42) million and Adjusted* segment operating income was $17 million before $(59) million of non-recurring charges, which included $(29)m of Multi-client library impairments.

Global economic crisis, triggered by Covid-19 pandemic, and unprecedented drop in oil price and E&P spending lead CGG to launch cost reduction actions, which resulted in new severance costs and recognize other non-recurring charges.

$(61) million of non-recurring charges were booked during the fourth quarter of 2020:

$(59) million at the operating level:

  • $(4) million of severance costs
  • $(29) million of non-cash Multi-client library impairments mainly in Africa and Ireland
  • $(10) million of asset impairment
  • $(15) million of non-cash fair value remeasurement of assets available for sale

$(3) million of non-cash remeasurement of other financial assets and liabilities

Non-recurring charges (in m$) Q4 2020
Operational costs provisions (4)
Multi-client library Impairment (29)
Asset impairment (10)
Fair value remeasurement of assets available for sale (15)
   
Other financial items (OFI) adjustements (3)
Total (61)










IFRS 15 adjustment
at operating income level was $(16) million and IFRS operating income, after IFRS 15 adjustment, was $(58) million.

Cost of financial debt was $(34) million. The total amount of interest paid during the quarter was $(34) million.

Other Financial Items were $2 million including $(3) million of non-recurring charges. Taxes were at $7 million.

Net loss from continuing operations was $(83) million including $(61) million of non-recurring charges.

Discontinued operations : Correspond to the former Contractual Data Acquisition and Non-Operated Resources segments. Main aggregates are as follows:

- Q4 revenue from discontinued operations was $17 million.

- Net loss from discontinued operations was $(18) million this quarter, including $(23)m non recurring charges related to the 2021 Plan

- Net Cash flow from discontinued operations was $(2) million before CGG 2021 Plan

Group net loss was $(100) million including $(84) million of non-recurring charges; $(61) million of non-recurring charges on continuing operations and $(23)m of non-recurring charges on discontinued operations.

After minority interests, Group net loss attributable to CGG shareholders was $(102) million/ €(86) million.

Fourth Quarter 2020 Cash Flow

Cash Flow items
In million $
2019
Q4
2020
Q4
Variances %
Segment Operating Cash Flow 179 26 (85)%
CAPEX (55) (55) -
Industrial (15) (5) 64%
R&D (8) (9) (10)%
Multi-Client (Cash) (32) (41) (26)%
Marine MC (21) (40) (88)%
Land MC (11) (1) 94%
Proceeds from disposals of assets - - -
Segment Free Cash Flow 124 (29) -
Lease repayments (16) (12) 24%
Paid Cost of debt (33) (34) (2)%
   CGG 2021 Plan (71) (18) 75%
Free cash flow from discontinued operations 3 (2) -
Net Cash flow 7 (95) -
Financing cash flow (1) 0 100%
Forex and other 9 16 75%
Net increase/(decrease) in cash 15 (79) -
Supplementary information      
Change in working capital and provisions, included in Segment Operating Cash Flow (20) (88) -
From severance cash costs - (3) -
Segment Free Cash Flow before severance cash costs 124 (26) (121)%

Total capex was $(55) million:

  • Industrial capex was $(5) million,
  • Research & Development capex was $(9) million,
  • Multi-client cash capex was $(41) million

Segment Free Cash Flow was $(29) million, including $(88) million negative change in working capital and $(3)m of non-recurring severance cash costs.

After $(12) million lease repayments, $(34) million paid cost of debt, $(18) million 2021 plan cash costs and $(2) million free cash flow from discontinued operations, Net Cash Flow was $(95) million.

Full Year 2020 Financial Results

Consolidated Income Statements
In million $
2019 2020 Variances %
Exchange rate euro/dollar 1.12 1.14 1%
Segment revenue 1,400 955 (32)%
GGR 960 668 (30)%
Equipment 452 291 (36)%
   Elim & Other (11) (4) 69%
Segment Gross Margin 393 169 (57)%
Segment EBITDAs 721 361 (50)%
GGR 652 401 (39)%
Equipment 97 23 (77)%
Corporate (28) (21) 23%
   Elim & Other - - 100%
   Severance costs - (42) -
Segment operating income 247 (164) -
GGR 211 81 (62)%
Equipment 67 (9) (114)%
Corporate (30) (23) 22%
   Elim & Other - - -
Non-recurring charges - (213) -
IFRS 15 adjustment (4) (8) (123)%
IFRS operating income 244 (173) (171)%
Equity from investments - - -
Net cost of financial debt (132) (134) (2)%
Other financial income (loss) 6 8 38%
Income taxes 9 (21) -
NRC (Tax & OFI) - (56) -
Net income / (loss) from continuing operations 126 (376) -
Net income / (loss) from discontinued operations (188) (63) 67%
IFRS net income / (loss) (61) (438) -
Shareholder's net income / (loss) (69) (442) -
Basic Earnings per share in $ (0.10) (0.62) -
Basic Earnings per share in € (0.09) (0.55) -

Segment revenue was $955 million, down (32)% compared to last year. The respective contributions from the Group’s businesses were 34% from Geoscience, 36% from Multi-Client (70% for the GGR segment) and 30% from Equipment.

GGR segment revenue was $668 million, down (30)% year-on-year

  • Geoscience revenue was $328 million, down (15)% year-on-year and more resilient mainly due to entering the year with solid backlog.
  • Multi-Client sales were $340 million, down (41)% year-on-year.
    • Prefunding revenue was $213 million, down (3)% year-on-year. Multi-Client cash capex was $(239) million, up 29% year-on-year, and cash prefunding rate was 89%.
    • After-sales were $127 million, down (64)% compared to 2019, which included large one-off transfer fees in Q3 2019.

Equipment revenue was $287 million, down (35)% year-on-year with a reduction in equipment market triggered by the Covid-19 pandemic and the drop in oil price.

Segment EBITDAs was $361 million and Adjusted segment EBITDAs was $402 million, before $(42) million of severance costs, down (44)% year-on-year, a 42% margin.

GGR adjusted EBITDA was $401 million, a 60% margin. Equipment adjusted EBITDA was $23 million, a 8% margin.

Segment operating income was $(164) million and Adjusted segment operating income, was $48 million, before $(213) million of non-recurring charges at the operating level.

Global economic crisis, triggered by Covid-19 pandemic and unprecedented drop in oil price and E&P spending lead CGG to launch cost reduction actions, which resulted in new severance costs and recognize other non-recurring charges.

$(269) million of non-recurring charges were booked in 2020:

$(213) million at the operating level:

  • $(42) million severance cash costs related to headcount reductions worldwide
  • $(98) million non-cash impairments of the multi-client library
  • $(11) million non-cash asset impairments
  • $(37) million non-cash fair value remeasurement of GeoSoftware business available for sale
  • $(24) million non-cash goodwill impairment related to GeoConsulting business mainly focused on exploration and appraisal

$(56) million of Other Financial Assets and Deferred Tax Assets impairments:

  • $(48) million non-cash remeasurements of other financial assets and liabilities mainly related to data acquisition exit
  • $(9) million non-cash impairments of Deferred Tax Assets
Non-recurring charges (in m$) 2020
Operational costs provisions (42)
Multi-client library Impairment (98)
Asset impairment (11)
Fair value remeasurement of assets available for sale (37)
Goodwill impairment (24)
   
Other Financial Items (OFI) adjustment (48)
Deferred Tax Assets impairment (9)
Total (269)

IFRS 15 adjustment at operating income level was $(8) million and IFRS operating income, after IFRS 15 adjustment, was $(173) million.

Cost of financial debt was $(134) million. The total amount of interest paid in 2020 was $(80) million.

Other Financial Items were $(39) million, including $(48) million of non-recurring charges related to remeasurement of fair value of other financial assets and liabilities.

Taxes were at $(30) million including $(9) million non-cash impairments of Deferred Tax Assets.

Net loss from continuing operations was $(376) million including $(269) million of non-recurring charges.

Full Year 2020 Discontinued operations

Correspond to the former Contractual Data Acquisition and Non-Operated Resources segments. Main aggregates are as follows:

- Revenue from discontinued operations was $39 million.

- Net loss from discontinued operations was $(63) million, including $(67)m non recurring charges related to the 2021 Plan

- Net Cash flow from discontinued operations was $15 million before CGG 2021 Plan.

Group net loss was $(438) million including $(336) million of non-recurring charges; $(269) million of non-recurring charges on continuing operations and $(67)m of non-recurring charges on discontinued operations.

After minority interests, Group loss attributable to CGG shareholders was $(442) million/ €(389) million.

Full Year 2020 Cash Flow

Cash Flow items
(in m$)
2019 2020 Variances %
Segment Operating Cash Flow 751 265 (65)%
CAPEX (261) (303) 17%
Industrial (43) (23) (46)%
R&D (32) (41) 26%
Multi-Client (Cash) (186) (239) 29%
Marine MC (153) (210) 38%
Land MC (33) (29) (12)%
Proceeds from disposals of assets - - -
Segment Free Cash Flow 491 (39) (108)%
Lease repayments (57) (55) (3)%
Paid Cost of debt (81) (80) -
   CGG 2021 Plan (136) (87) (36)%
Free cash flow from discontinued operations (32) 15 147%
Net Cash flow 186 (247) -
Financing cash flow (0) (5) -
Forex and other (9) 27 -
Net increase/(decrease) in cash 176 (225) -
Supplementary information      
Change in working capital and provisions, included in Segment Operating Cash Flow 58 (89) -
From severance cash costs - (14) -
Segment Free Cash Flow before severance cash costs 491 (25) (105)%

Capex was $(303) million, up 17% year-on-year:

  • Industrial capex was $(23) million, down (46)% year-on-year,
  • Research & Development capex was $(41) million, up 26% year-on-year,
  • Multi-client cash capex was $(239) million, up 29% year-on-year.

Segment Free Cash Flow was at $(39) million, including negative change in working capital of $(89) million and $(14) million of severance cash costs.

After lease repayments of $(55) million, payment of interest expenses of $(80) million, CGG 2021 Plan cash costs of $(87) million and positive free cash flow from discontinued operations of $15 million, Group Net Cash Flow was $(247) million.
  

Balance Sheet 

Group’s liquidity amounted to $385 million at the end of December 31, 2020.

Group gross debt before IFRS 16 was $1,234 million at the end of December 31, 2020 and net debt was $849 million.

Group gross debt after IFRS 16 was $1,389 million at the end of December 31, 2020 and net debt was $1,004 million.

Segment leverage ratio of Net debt to Segment Ebitdas was 2.8x at the end of December 2020.

Q4 & Full Year 2020 Conference call

An English language analysts’ conference call is scheduled today at 8:00 am (Paris time) – 7:00 am (London time)

To follow this conference, please access the live webcast:

From your computer at: www.cgg.com


 

A replay of the conference will be available via webcast on the CGG website at: www.cgg.com.

For analysts, please dial the following numbers 5 to 10 minutes prior to the scheduled start time:

France call-in: +33 (0) 1 70 70 07 81
UK call-in: +44(0) 844 4819 752
Access Code: 2455854

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

 

CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2020

Consolidated statement of operations

In millions of US$   Year
  2020 2019
Operating revenues   886.0 1,355.9
Other income from ordinary activities   0.7 0.7
Total income from ordinary activities   886.7 1,356.6
Cost of operations   (725.9) (967.0)
Gross profit   160.8 389.6
Research and development expenses – net   (18.6) (23.6)
Marketing and selling expenses   (32.5) (47.0)
General and administrative expenses   (67.9) (66.2)
Other revenues (expenses) – net   (214.5) (9.3)
Operating income   (172.7) 243.5
Cost of financial debt – gross   (136.3) (135.2)
Income from cash and cash equivalents   2.2 3.5
Cost of financial debt – net   (134.1) (131.7)
Other financial income (loss)   (39.4) 5.6
Income (loss) before income taxes and share of income (loss) from companies accounted for under the equity method   (346.2) 117.4
Income taxes   (29.5) 8.9
Net income (loss) before share of net income (loss) from companies accounted for under the equity method   (375.7) 126.3
Net income (loss) from companies accounted for under the equity method   0.1 (0.1)
Net income (loss) from continuing operations   (375.6) 126.2
Net income (loss) from discontinued operations   (62.5) (187.7)
Consolidated net income (loss)   (438.1) (61.5)
Attributable to:      
Owners of CGG $ (441.8) (69.1)
Non-controlling interests $ 3.7 7.6
Weighted average number of shares outstanding   710,739,746 709,950,455
Weighted average number of shares outstanding adjusted for dilutive potential ordinary shares   710,739,746 711,922,761
Net income (loss) per share      
- Base $ (0.62) (0.10)
- Diluted $ (0.62) (0.10)
Net income (loss) from continuing operations per share      
- Base $ (0.53) 0.17
- Diluted $ (0.53) 0.17
Net income (loss) from discontinued operations per share      
- Base $ (0.09) (0.26)
- Diluted $ (0.09) (0.26)
 

Consolidated statement of financial position

In millions of US$   12.31.2020 12.31.2019
ASSETS      
Cash and cash equivalents   385.4 610.5
Trade accounts and notes receivable, net   325.0 436.0
Inventories and work-in-progress, net   237.8 200.1
Income tax assets   84.6 84.9
Other current financial assets, net   13.7 -
Other current assets, net   92.0 116.7
Assets held for sale, net   117.7 316.6
Total current assets   1,256.2 1,764.8
Deferred tax assets   10.3 19.7
Investments and other financial assets, net   13.6 27.4
Investments in companies accounted for under the equity method   3.6 3.0
Property plant & equipment, net   268.1 300.0
Intangible assets, net   639.2 690.8
Goodwill, net   1,186.5 1,206.9
Total non-current assets   2,121.3 2,247.8
TOTAL ASSETS   3,377.5 4,012.6
LIABILITIES AND EQUITY      
Bank overdrafts   0.2 -
Financial debt – current portion   58.6 59.4
Trade accounts and notes payable   96.7 117.4
Accrued payroll costs   106.6 156.6
Income taxes payable   56.8 59.3
Advance billings to customers   19.5 36.9
Provisions – current portion   52.7 50.0
Other current financial liabilities   34.4 -
Other current liabilities   278.6 327.3
Liabilities associated with non-current assets held for sale   13.0 259.2
Total current liabilities   717.1 1,066.1
Deferred tax liabilities   16.3 10.4
Provisions – non-current portion   51.8 58.1
Financial debt – non-current portion   1,330.3 1,266.6
Other non-current financial liabilities   53.0 -
Other non-current liabilities   44.4 4.0
Total non-current liabilities   1,495.8 1,339.1
Common stock (a)   8.7 8.7
Additional paid-in capital   1,687.1 3,184.7
Retained earnings   (480.6) (1,531.1)
Other Reserves   (37.3) (23.5)
Treasury shares   (20.1) (20.1)
Cumulative income and expense recognized directly in equity   (0.7) (0.7)
Cumulative translation adjustments   (37.4) (56.3)
Equity attributable to owners of CGG SA   1,119.7 1,561.7
Non-controlling interests   44.9 45.7
Total Equity   1,164.6 1,607.4
TOTAL LIABILITIES AND EQUITY   3,377.5 4,012.6
(a) Common stock: 1,194,071,863 shares authorized and 711,392,383 shares with a nominal value of €0.01 outstanding at December 31, 2020


Consolidated statement of cash flows 

In millions of US$   Year
  2020 2019
OPERATING ACTIVITIES      
Consolidated net income (loss)   (438.1) (61.5)
Less: Net income (loss) from discontinued operations   62.5 187.7
Net income (loss) from continuing operations   (375.6) 126.2
Depreciation, amortization and impairment   193.5 138.2
Impairment and amortization of Multi-Client surveys   284.8 308.0
Impairment and amortization of Multi-Client surveys, capitalized   (18.1) (18.8)
 Variance on provisions   15.9 (10.5)
Share-based compensation expenses   4.0 5.3
Net (gain) loss on disposal of fixed and financial assets   0.5 1.0
Share of (income) loss in companies recognized under equity method   (0.1) 0.1
Dividends received from companies accounted for under the equity method   - -
Other non-cash items   39.3 (4.3)
Net cash flow including net cost of financial debt and income tax   144.2 545.2
Less: Cost of financial debt   134.1 131.7
Less: Income tax expense (gain)   29.5 (8.9)
Net cash flow excluding net cost of financial debt and income tax   307.8 668.0
Income tax paid   (7.7) (30.2)
Net cash flow before changes in working capital   300.1 637.8
Changes in working capital   (35.8) 113.6
- Change in trade accounts and notes receivable   38.4 150.0
- Change in inventories and work-in-progress   (25.9) (3.7)
- Change in other current assets   (2.8) (33.7)
- Change in trade accounts and notes payable   (1.6) 7.7
- Change in other current liabilities   (43.9) (6.7)
Net cash flow from operating activities   264.3 751.4
INVESTING ACTIVITIES      
Total capital expenditures (tangible and intangible assets) net of variation of fixed assets suppliers and excluding Multi-Client surveys)   (64.1) (75.3)
Investments in Multi-Client surveys, net cash   (239.0) (185.7)
Proceeds from disposals of tangible and intangible assets   0.5 0.1
Total net proceeds from financial assets   - 0.1
Acquisition of investments, net of cash & cash equivalents acquired   (0.4) -
Variation in loans granted   - -
Variation in subsidies for capital expenditures   - -
Variation in other non-current financial assets   13.4 (0.7)
Net cash-flow used in investing activities   (289.6) (261.5)
FINANCING ACTIVITIES      
Repayment of long-term debt   (5.2) (0.4)
Total issuance of long-term debt   - -
Lease repayments   (55.5) (56.9)
Change in short-term loans   0.1 -
Financial expenses paid   (80.2) (80.5)
Capital increase:      
- by owners of CGG   - -
- by non-controlling interests in integrated companies   - -
Dividends paid and share capital reimbursements      
- to owners of CGG   - -
- to non-controlling interests of integrated companies   (7.2) (3.8)
Acquisition/disposal of treasury shares   - -
Net cash-flow from (used in) financing activities   (148.0) (141.6)
Effect of exchange rate changes on cash   20.7 (4.3)
Impact of changes in consolidation scope      
Net cash flows incurred by discontinued operations   (72.5) (167.6)
Net increase (decrease) in cash and cash equivalents   (225.1) 176.4
Cash and cash equivalents at beginning of year   610.5 434.1
Cash and cash equivalents at end of period   385.4 610.5
 

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CGG Announces its Q4 and Full Year 2020 Results  CGG Announces its Q4 and Full Year 2020 Results Q4 Solid Operational Performance 2021 Positive Net Cash Flow sustained by gradual recovery PARIS, France – March 5, 2021 – CGG (ISIN: FR0013181864), a world leader in Geoscience, announced today …

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