CGG Announces its 2017 Second
Quarter Results
Quarterly EBITDA boosted by solid multi-client
sales
- Revenue at $350m
- GGR: solid Multi-Client quarterly sales boosted by Mexican and
Brazilian licensing rounds
- Equipment: persistent low volumes
- Contractual Data Acquisition: good marine operational
performance in very challenging market conditions
- EBITDAs1 at $120m
- Group Operating Income1 at $(3)m
- Capex at $78m and Free Cash Flow1 at
$(24)m
- Net debt up at $2,497m at end of June with
liquidity down to $315m
- Net income at $(170)m
2017 Market outlook unchanged
- 2017 operating results still expected in line with 2016, based
on different mix:
- Multi-Client: sales supported by good positioning in key
basins
- Equipment: low volumes in a context of uncertain recovery
horizon
- Data acquisition: still hampered by low exploration spending
with the usual unfavorable seasonality in H2
Focused on the swift delivery of our financial
restructuring
- Nordic debt restructuring completed on April 20
- Company financial restructuring proposal on May 12
- Agreement in principle with a majority of secured lenders and a
majority of unsecured lenders reached on June 2
- French Safeguard proceeding on CGG S.A. launched on June 14;
creditors committee to be held in France on July 28
- Prearranged US Chapter 11 for 14 significant subsidiaries
launched on June 14; creditors consultation to be completed in the
US by mid-October
- Successful Private Placement Agreement of $375m new 2024 HYB:
commitment period closed on July 7
- Financial restructuring plan to be approved by shareholders'
EGM to be held end of October; an essential step to ensure the
future of the company
- $125m rights issue to follow
- Settlement of all restructuring operations early 2018
1Figures before Non-Recurring Charges related to the Transformation
Plan and data library impairment |
PARIS, France - July 28th 2017 -
CGG (ISIN: FR0013181864 - NYSE: CGG), world leader in
Geoscience, announced today its 2017 second quarter unaudited
results.
Commenting on these results, Jean-Georges
Malcor, CGG CEO, said:
"This second quarter was characterized by the
very continued commitment from our operational teams, ensuring a
high quality service to our customers, and by major progress in our
financial restructuring process.
Operationally, our solid $120 million EBITDA was
driven by multi-client sales thanks to the good positioning of our
data library. However, equipment sales were very low in a market
with limited visibility and an uncertain recovery horizon. Our 2017
outlook is unchanged, with operating results in line with 2016 and
downward pressure on cash flow generation as expected.
In parallel, we achieved progress in our
financial restructuring process initiated early in the year, in
agreeing a plan with a majority of our creditors. This balanced
plan meets the objectives of the company: preservation of the
Group's integrity, massive debt reduction, extension of the debt
maturities and providing additional liquidity. It enabled us to
enter in prearranged Safeguard and Chapter 11 processes backed by
the majority of our creditors, thus helping to protect
commercially, operationally and socially the Company in this period
of uncertainty.
Following the creditors' committees vote in
France expected today and with the approval of the creditors in the
United States sought by mid-October, the next decisive step for
CGG's sustainability will be the approval of the financial
restructuring plan at the shareholders' Extraordinary General
Meeting scheduled for the end of October.
This proposed plan would result in a $2 billion
net debt reduction and would provide the necessary liquidity to
support the Company's turnaround, while allowing shareholders to
participate to the recovery."
Post-closing event
- CGG announced on July 13 that Eligible Holders representing
86.08% of the aggregate principal amount of the Senior Notes had
committed to subscribe to the new 2024 HYB pursuant to the terms of
the private placement agreement, and had acceded to the lock-up
agreement as at July 7 (the end of the placement period). As a
reminder, the issuance of the new 2024 HYB has been totally
backstopped by members of the ad hoc committee of the holders of
the Senior Notes.
Furthermore, holders of 74.24% of the combined
aggregate principal amount of the Senior Notes and the Convertible
Bonds, together with holders of 77.66% of the aggregate principal
amount of the group's Secured Debt, have executed or acceded to the
lock-up agreement. This indicates a high level of support for the
Financial Restructuring and satisfies a key milestone in the
implementation process ahead of creditors meetings in France and in
the US.
Second Quarter 2017 Key Figures
Before Non-Recurring Charges (NRC)
In million $ |
Second Quarter2016 |
First Quarter2017 |
Second Quarter2017 |
Group Revenue |
290.2 |
249.4 |
349.8 |
Group EBITDAs |
103.8 |
28.7 |
120.0 |
Group EBITDAs margin |
35.8% |
11.5% |
34.3% |
Group EBITDAs excluding NOR |
108.9 |
36.7 |
122.0 |
Operating Income |
(22.4) |
(67.2) |
(3.5) |
Opinc margin |
(7.7)% |
(26.9)% |
(1.0)% |
Operating Income excluding NOR |
0.2 |
(46.9) |
1.8 |
Equity from investments |
(4.8) |
2.5 |
(2.5) |
Net Financial Costs |
(43.9) |
(48.4) |
(48.2) |
Total Income Taxes |
(6.4) |
(2.3) |
(20.8) |
Non-recurring charges (NRC) |
(1.7) |
(29.7) |
(94.7) |
Net Income |
(79.2) |
(145.1) |
(169.7) |
Cash Flow from Operations before NRC |
134.1 |
34.4 |
52.2 |
Cash Flow from Operations after NRC |
87.2 |
(10.8) |
(2.1) |
Free Cash Flow before NRC |
(21.1) |
(74.3) |
(23.9) |
Free Cash Flow after NRC |
(68.0) |
(119.5) |
(78.2) |
Net Debt |
2,150.4 |
2,334.9 |
2,497.0 |
Capital Employed |
3,658.2 |
3,342.0 |
3,273.5 |
First Half 2017 Key Figures
Before Non-Recurring Charges (NRC)
In million $ |
First Half2016 |
First Half2017 |
Group Revenue |
603.2 |
599.2 |
Group EBITDAs |
130.9 |
148.7 |
Group EBITDAs margin |
21.7% |
24.8% |
Group EBITDAs excluding NOR |
145.6 |
158.7 |
Operating Income |
(103.7) |
(70.7) |
Opinc margin |
(17.2)% |
(11.8)% |
Operating Income excluding NOR |
(54.5) |
(45.1) |
Equity from investments |
(0.1) |
0 |
Net Financial Costs |
(85.2) |
(96.6) |
Total Income Taxes |
(12.7) |
(23.1) |
Non-recurring charges (NRC) |
(7.2) |
(124.4) |
Net Income |
(208.9) |
(314.8) |
Cash Flow from Operations before NRC |
371.7 |
86.6 |
Cash Flow from Operations after NRC |
283.4 |
(12.9) |
Free Cash Flow before NRC |
96.6 |
(98.2) |
Free Cash Flow after NRC |
8.3 |
(197.7) |
Net Debt |
2,150.4 |
2,497.0 |
Capital Employed |
3,658.2 |
3,273.5 |
Going concern
On June 14, 2017, a French safeguard procedure
was opened with respect to the Company and, on the same date, a US
Chapter 11 procedure was opened with respect to 14 of its direct or
indirect subsidiaries which are guarantors of the secured debt
(French and US Revolving Credit Facilities and Term Loan B) and /
or the Senior Notes. Under the umbrella of these legal procedures,
the holders of such debt and holders of our convertible bonds (c.
U.S.$2.8 billion outstanding principal amount in total) can no
longer call for any accelerated repayment. This provides the Group
with a protective framework to conduct its businesses in the
ordinary course and the Group stakeholders with a limited period of
time to approve a restructuring plan.
The main features of the proposed restructuring
plan have been disclosed together with the announcement of the
above-mentioned court procedures on June 14, 2017:
- Full conversion of unsecured debt (Senior Notes and convertible
bonds) into equity;
- Secured debt (French and US Revolving Credit Facilities and
Term Loan B) exchanged for new secured first lien senior notes with
a 5-year maturity;
- Up to U.S.$500 million of new money raised through a U.S.$125
million Rights Issue and the issuance of U.S.$375 million of new
secured second lien senior notes (with Warrants) with a 6-year
maturity.
As of July 27, 2017, the Group faces material
uncertainties that may cast substantial doubt upon its ability to
continue as a going concern. Even under the protection of the court
procedures mentioned above, and despite having successfully
implemented during the first six months of 2017 all planned
specific actions related to marine liabilities, fleet ownership and
major contract factoring, the U.S.$315 million of Group liquidity
as of June 30, 2017 does not allow to fully fund our current
operations until at least June 30, 2018.
The ability of the Group to continue as a going
concern then depends essentially on the effective and timely
implementation of the proposed restructuring plan, especially the
raising of up to U.S.$500 million of new money by early 2018.
Should the creditors involved in the French safeguard and US
Chapter 11 procedures or the shareholders fail to approve the
proposed restructuring plan and/or should the targeted
implementation timetable of such restructuring plan not be met, the
Group liquidity would decrease below the required level to run the
operations no later than in the first quarter of 2018 according to
the Company cash flow forecasts. If the U.S.$500 million new money
is raised in the first quarter of 2018 in accordance with the
proposed restructuring plan, the Group liquidity is expected to be
sufficient to fund our current operations until June 30, 2018 at
least.
Following the successful completion of the
private placement of the commitments to subscribe the new money
secured second lien senior notes in a principal amount of U.S.$375
million (with Warrants) in early July, the proposed restructuring
plan is now supported, through signed lock-up agreements, by the
required majorities of creditors. On that basis, and in the light
of the respective merits of the proposed restructuring plan for the
other Group stakeholders, the Company believes that the
implementation of the restructuring plan in the first quarter of
2018 is a reasonable assumption.
Having carefully considered the above, the Board
of Directors on July 27, 2017 concluded that preparing the June 30,
2017 consolidated financial statements on a going concern basis is
an appropriate assumption.
Second quarter 2017 financial results by
operating segment and before non-recurring charges
Geology, Geophysics & Reservoir
(GGR)
GGR In million $ |
Second Quarter2016 |
First Quarter2017 |
Second Quarter2017 |
VariationYear-on-year |
VariationQuarter-to-quarter |
Total Revenue |
196.4 |
158.0 |
220.7 |
12% |
40% |
Multi-Client |
95.6 |
72.2 |
132.7 |
39% |
84% |
Pre-funding |
77.9 |
53.2 |
73.3 |
(6)% |
38% |
After-Sales |
17.7 |
19.0 |
59.4 |
236% |
213% |
Subsurface Imaging & Reservoir (SIR) |
100.8 |
85.8 |
88.0 |
(13)% |
3% |
EBITDAs |
119.3 |
80.2 |
139.3 |
17% |
74% |
Margin |
60.7% |
50.8% |
63.1% |
240 bps |
NA |
Operating Income* |
28.8 |
18.3 |
37.3 |
30% |
104% |
Margin |
14.7% |
11.6% |
16.9% |
220 bps |
530 bps |
Capital Employed (in billion $) |
2.3 |
2.3 |
2.3 |
NA |
NA |
GGR Total Revenue was $221 million, up
12% year-on-year and 40% sequentially.
- Multi-Client revenue was $133 million, up 39%
year-on-year and 84% sequentially. 48% of the fleet was allocated
to multi-client programs compared to 66% in Q2 2016 and 29% in Q1
2017. Multi-client sales were the highest in Gulf of Mexico and
Brazil.
- Prefunding revenue was $73 million, down 6% year-on-year and up
38% sequentially. Multi-client cash capex was at $60 million, down
35% year-on-year and up 24% sequentially. The cash prefunding rate
was at 122% versus 84% in Q2 2016.
- After-sales revenue was $59 million, up 236% year-on-year and
213% sequentially.
- Subsurface Imaging & Reservoir revenue was $88
million, down 13% year-on-year and up 3% sequentially. Reservoir
businesses were impacted by clients' low capex spending. Subsurface
Imaging continues to harvest commercial success, as demonstrated by
long term dedicated centers award in Oman and Thailand.
GGR EBITDAs was $139 million, a 63.1%
margin.
GGR Operating Income was $37 million, a
16.9% margin. The multi-client depreciation rate totaled 67%,
leading to a library Net Book Value of $833 million at the end of
June, split 89% offshore and 11% onshore.
GGR Capital Employed was stable at $2.3
billion at the end of June 2017.
Equipment
Equipment In
million $ |
Second Quarter2016 |
First Quarter2017 |
Second Quarter2017 |
VariationYear-on-year |
VariationQuarter-to-quarter |
Total Revenue |
44.3 |
32.4 |
53.0 |
20% |
64% |
External Revenue |
36.0 |
25.6 |
47.8 |
33% |
87% |
Internal Revenue |
8.3 |
6.8 |
5.2 |
(37)% |
(24)% |
EBITDAs |
(9.3) |
(8.7) |
(5.5) |
41% |
37% |
Margin |
(21.0)% |
(26.9)% |
(10.4)% |
NA |
NA |
Operating Income |
(18.2) |
(16.4) |
(12.6) |
31% |
23% |
Margin |
(41.1)% |
(50.6)% |
(23.8)% |
NA |
NA |
Capital Employed (in billion $) |
0.7 |
0.6 |
0.6 |
NA |
NA |
Equipment Total Revenue was $53 million,
up 20% year-on-year and 64% sequentially. External sales were $48
million, up 33% year-on-year and 87% sequentially. Land and marine
seismic equipment sales were still impacted by low demand this
quarter.
Land equipment sales represented 49% of total
sales, compared to 64% in the second quarter of 2016, with channels
delivered to Algeria and India and gauges business being
active.
Marine equipment sales represented 51% of total
sales, compared to 36% in the second quarter of 2016, driven
notably by some second hand equipment delivery.
Equipment EBITDAs was $(6) million, a
margin of (10.4)%.
Equipment Operating Income was $(13)
million, a margin of (23.8)%.
Equipment Capital Employed was stable at
$0.6 billion at the end of June 2017.
Contractual Data Acquisition
Contractual Data Acquisition In
million $ |
Second Quarter2016 |
First Quarter2017 |
Second Quarter2017 |
VariationYear-on-year |
VariationQuarter-to-quarter |
Total Revenue |
59.2 |
66.5 |
82.0 |
39% |
23% |
External Revenue |
57.8 |
65.8 |
81.3 |
41% |
24% |
Internal Revenue |
1.4 |
0.7 |
0.7 |
(50)% |
0% |
Total Marine Acquisition |
22.3 |
44.6 |
60.9 |
173% |
36% |
Total Land and Multi-Physics Acquisition |
36.9 |
21.9 |
21.1 |
(43)% |
(4)% |
EBITDAs |
9.4 |
(25.2) |
(0.9) |
(110)% |
96% |
Margin |
15.9% |
(37.9)% |
(1.1)% |
NA |
NA |
Operating Income |
0.5 |
(38.6) |
(12.7) |
NA |
67% |
Margin |
0.8% |
(58.0)% |
(15.5)% |
NA |
NA |
Equity from Investments |
(4.8) |
2.5 |
0.3 |
106% |
(88)% |
Capital Employed (in billion $) |
0.5 |
0.4 |
0.4 |
NA |
NA |
Contractual Data Acquisition Total
Revenue was $82 million, up 39% year-on-year and 23%
sequentially.
- Contractual Marine Data Acquisition revenue was $61
million, up 173% year-on-year and 36% sequentially. Our vessel
availability rate was 100%. This compares to 90% in the second
quarter of 2016 and 91% in the first quarter of 2017. Our vessel
production rate was 98%. This compares to 94% in the second quarter
of 2016 and 98% in the first quarter of 2017. The higher revenue
can be explained by the strong production performance coupled with
the 100% fleet availability rate this quarter, after mobilization
on two large surveys and vessel swap in Q1.
- Land and Multi-Physics Data Acquisition revenue was $21
million, down 43% year-on-year and 4% sequentially. Market activity
remains low.
Contractual Data Acquisition EBITDAs was
$(1) million, a margin of (1.1)%.
Contractual Data Acquisition Operating
Income was $(13) million, a margin of (15.5)%. Contractual Data
Acquisition activities continued to suffer from a still competitive
market, mitigated by the strong fleet productivity and the positive
impact of Global Seismic Shipping on the cost structure.
Contractual Data Acquisition Capital
Employed was stable at $0.4 billion at the end of June
2017.
Non-Operated Resources
Non-Operated Resources In million $ |
Second Quarter2016 |
First Quarter2017 |
Second Quarter2017 |
VariationYear-on-year |
VariationQuarter-to-quarter |
EBITDAs |
(5.1) |
(8.0) |
(2.0) |
61% |
75% |
Operating Income |
(22.6) |
(20.3) |
(5.3) |
77% |
74% |
Equity from Investments |
0 |
0 |
(2.8) |
NA |
NA |
Capital Employed (in billion $) |
0.2 |
0 |
0 |
NA |
NA |
The Non-Operated Resources Segment
comprises, in terms of EBITDAs and Operating Income, the costs
relating to non-operated resources.
Non-Operated Resources EBITDAs was $(2)
million.
Non-Operated Resources Operating Income
was $(5) million. The amortization of excess streamers has a
negative impact on the contribution of this segment.
The equity from investments now includes the
impact of 50% of the new Global Seismic Shipping (GSS) JV, which we
own with Eidesvik. Seven vessels were transferred to GSS, four of
them cold-stacked.
Non-Operated Resources Capital Employed
was nil at the end of June 2017.
Second quarter 2017 financial results
Group Total Revenue was $350 million, up
21% year-on-year and 40% sequentially. The respective contributions
from the Group's businesses were 63% from GGR, 14% from Equipment
and 23% from Contractual Data Acquisition.
Group EBITDAs was $120 million, a 34.3%
margin, and $25 million after $(95) million of Non-Recurring
Charges (NRC) related to the Transformation Plan. Excluding
Non-Operated Resources (NOR), and to focus solely on the
performance of our active Business Lines, Group EBITDAs was $122
million.
Group Operating Income was $(3) million,
a (1.0)% margin, and $(98) million after $(95) millions of NRC.
Excluding NOR, and to focus solely on the performance of our active
Business Lines, Group Operating Income was $2 million.
Equity from Investments contribution was
$(3) million and can notably be explained by the negative
contribution made by the Global Seismic Shipping JV this
quarter.
Total non-recurring charges were $95
million:
- $53 million of Group Transformation Plan charges, mainly
related to Global Seismic Shipping set up
- $42 million of Financial restructuring costs
Net financial costs were $48 million:
- Cost of debt was $49 million. The total amount of interest paid
during the quarter was $14 million
- Other financial items were positive $1 million, the negative
impact of the Global Seismic Shipping set up being balanced by the
positive foreign exchange impact.
Total Income Taxes were $21 million.
Group Net Income was $(170) million after
NRC.
After minority interests, Net Income
attributable to the owners of CGG was a loss of $(169) million
/ €(155) million. EPS was negative at $(7.64) / €(7.00).
Cash Flow
Given the negative change in working capital,
Cash Flow from operations was $52 million compared to $134
million for the second quarter of 2016. After cash Non-Recurring
Charges, the Cash Flow from operations was $(2) million.
Global Capex was $78 million, down 32% year-on-year and
up 14% sequentially.
- Industrial capex was $10 million, down 26% year-on-year
and 28% sequentially
- Research & Development capex was $8 million, down 9%
year-on-year and up 25% sequentially
- Multi-client cash capex was $60 million, down 35%
year-on-year and up 24% sequentially
After the payment of interest expenses and Capex
and before cash NRC, Free Cash Flow was at $(24) million
compared to $(21) million for the second quarter of 2016. After
cash NRC, Free Cash Flow was at $(78)
million.
Comparison of Second Quarter 2017 with First Quarter 2017 and
Second Quarter 2016
Consolidated Income Statements In
Million $ |
Second Quarter2016 |
First Quarter2017 |
Second Quarter2017 |
VariationYear-on-year |
VariationQuarter-to-quarter |
Exchange rate euro/dollar |
1.13 |
1.06 |
1.09 |
NA |
NA |
Operating Revenue |
290.2 |
249.4 |
349.8 |
21% |
40% |
GGR |
196.4 |
158.0 |
220.7 |
12% |
40% |
Equipment |
44.3 |
32.4 |
53.0 |
20% |
64% |
Contractual Data Acquisition |
59.2 |
66.5 |
82.0 |
39% |
23% |
Elimination |
(9.7) |
(7.5) |
(5.9) |
(39)% |
(21)% |
Gross Margin |
1.7 |
(26.5) |
32.5 |
NA |
223% |
EBITDAs before NRC |
103.8 |
28.7 |
120.0 |
16% |
318% |
GGR |
119.3 |
80.2 |
139.3 |
17% |
74% |
Equipment |
(9.3) |
(8.7) |
(5.5) |
41% |
37% |
Contractual Data Acquisition |
9.4 |
(25.2) |
(0.9) |
(110)% |
96% |
Non-Operated Resources |
(5.1) |
(8.0) |
(2.0) |
61% |
75% |
Corporate |
(8.0) |
(8.1) |
(8.3) |
4% |
2% |
Eliminations |
(2.5) |
(1.5) |
(2.6) |
4% |
73% |
NRC before impairment |
(1.7) |
(29.7) |
(94.7) |
NA |
219% |
Operating Income before NRC |
(22.4) |
(67.2) |
(3.5) |
84% |
95% |
GGR |
28.8 |
18.3 |
37.3 |
30% |
104% |
Equipment |
(18.2) |
(16.4) |
(12.6) |
31% |
23% |
Contractual Data Acquisition |
0.5 |
(38.6) |
(12.7) |
NA |
67% |
Non-Operated Resources |
(22.6) |
(20.3) |
(5.3) |
77% |
74% |
Corporate |
(8.0) |
(8.1) |
(8.3) |
4% |
2% |
Eliminations |
(2.9) |
(2.1) |
(1.9) |
(34)% |
(10)% |
NRC |
(1.7) |
(29.7) |
(94.7) |
NA |
219% |
Operating Income after NRC |
(24.1) |
(96.9) |
(98.2) |
(307)% |
(1)% |
Net Financial Costs |
(43.9) |
(48.4) |
(48.2) |
10% |
0% |
Income Taxes |
(6.2) |
(2.5) |
(21.6) |
248% |
764% |
Deferred Tax on Currency Translation |
(0.2) |
0.2 |
0.8 |
500% |
300% |
Equity from Investments |
(4.8) |
2.5 |
(2.5) |
48% |
(200)% |
Net Income |
(79.2) |
(145.1) |
(169.7) |
(114)% |
(17)% |
Shareholder's Net Income |
(77.8) |
(144.1) |
(169.2) |
(117)% |
(17)% |
Earnings per share in $ |
(3.52) |
(6.51) |
(7.64) |
NA |
NA |
Earnings per share in € |
(3.07) |
(6.12) |
(7.00) |
NA |
NA |
Cash Flow Statements In Million $ |
Second Quarter2016 |
First Quarter2017 |
Second Quarter2017 |
VariationYear-on-year |
VariationQuarter-to-quarter |
EBITDAs before NRC |
103.8 |
28.7 |
120.0 |
16% |
318% |
Net tax paid |
1.9 |
(3.1) |
4.9 |
158% |
(258)% |
Change in Working Capital |
15.2 |
12.8 |
(57.4) |
(478)% |
(548)% |
Other items |
13.2 |
(4.0) |
(15.3) |
(216)% |
(283)% |
Cash Flow provided by operating activities |
134.1 |
34.4 |
52.2 |
(61)% |
52% |
Paid Cost of Debt |
(43.8) |
(44.2) |
(13.5) |
(69)% |
(69)% |
Capex (including change in fixed assets payables) |
(119.0) |
(67.7) |
(77.5) |
(35)% |
14% |
Industrial |
(17.2) |
(12.9) |
(9.4) |
(45)% |
(27)% |
R&D |
(8.9) |
(6.5) |
(8.1) |
(9)% |
25% |
Multi-Client (Cash) |
(92.9) |
(48.3) |
(60.0) |
(35)% |
24% |
Marine MC |
(86.3) |
(36.9) |
(58.6) |
(32)% |
59% |
Land MC |
(6.6) |
(11.4) |
(1.4) |
(79)% |
(88)% |
Proceeds from disposals of assets |
7.6 |
3.2 |
14.9 |
96% |
366% |
Free Cash Flow before Cash NRC |
(21.1) |
(74.3) |
(23.9) |
(13)% |
68% |
Cash NRC |
(46.9) |
(45.2) |
(54.3) |
16% |
20% |
Free Cash Flow after Cash NRC |
(68.0) |
(119.5) |
(78.2) |
(15)% |
35% |
Non Cash Cost of Debt and Other Financial Items |
2.1 |
(2.6) |
(35.1) |
NA |
NA |
Specific items |
(4.3) |
(3.0) |
3.5 |
181% |
217% |
FX Impact |
21.5 |
(10.0) |
(67.3) |
(413)% |
(573)% |
Other variance non cash |
0 |
111.8 |
15.0 |
NA |
(87)% |
Change in Net Debt |
(48.7) |
(23.3) |
(162.1) |
(233)% |
(596)% |
Net debt |
2,150.4 |
2,334.9 |
2,497.0 |
16% |
7% |
First Half 2017 Financial Results
Group Total Revenue was $599 million,
down 1% compared to 2016. The respective contributions from the
Group's businesses were 63% from GGR, 12% from Equipment and 25%
from Contractual Data Acquisition.
Group EBITDAs was $149 million, a 24.8%
margin, and $24 million after $(124) million of NRC related to the
Transformation Plan. Excluding NOR, and to focus solely on the
performance of our active Business Lines, Group EBITDAs was $159
million.
Group Operating Income was $(71) million,
an (11.8)% margin, and $(195) million after $(124) million of NRC.
Excluding NOR, and to focus solely on the performance of our active
Business Lines, Group Operating Income was $(45) million.
- GGR operating income margin was at 14.7%. Multi-Client
sales reached $205 million with a cash prefunding rate of 117%. Our
highest offshore multi-client sales were made in Gulf of Mexico and
Brazil. The depreciation rate was 67% leading to a Net Book Value
of $833 million at the end of June.
Subsurface Imaging delivered a resilient
performance, while reservoir businesses were impacted by clients'
low capex spending.
- Equipment operating income margin was at (34.0)%.
Despite very efficient cost management and its manufacturing
flexibility, very low volumes continue to strongly impact the
profitability of this segment.
- Contractual Data Acquisition operating income margin was
at (34.5)% due to weak pricing conditions in Marine, despite our
fleet's good operational performance with a high production rate at
98%. 59% of our fleet was dedicated to the contractual market over
the semester. Land and Multi-Physics acquisition continued to
suffer from a global low level of activity and slow clients'
decision process.
- NOR operating income was at $(26) million.
Equity from Investments contribution was
nil this semester.
Total non-recurring charges (NRC) were
$124 million:
- $71 million of Group Transformation Plan charges, mainly
related to Global Seismic Shipping set up
- $53 million of Financial restructuring costs
Net financial costs were $97 million:
- Cost of debt was $96 million. The total amount of interest paid
was $58 million
- Other financial items were negative at $1 million
Total Income Taxes were $23 million.
Group Net Income was $(315) million after
NRC.After minority interests, Net Income attributable to the
owners of CGG was a loss of $(313) million / €(291) million.
EPS was negative at $(14.15) / €(13.12).
Cash Flow
Cash Flow from operations was $87 million
before NRC, compared to $372 million for the first half of 2016.
Cash Flow from operations was $(13) million after cash NRC.
Global Capex was $146 million, down 28% year-on-year:
- Industrial capex was $23 million, up 3%
year-on-year
- Research & development capex was $15 million, down
19% year-on-year
- Multi-client cash capex was $108 million, down 33%
year-on-year
After the payment of interest expenses and Capex and before NRC,
Free Cash Flow was $(98) million compared to $97 million for
the first half of 2016. After cash NRC, Free Cash Flow was $(198)
million.
Balance Sheet
Group gross debt was $2.812 billion at the end
of June 2017. Available cash was $315 million and Group net
debt was $2.497 billion.
The net debt to shareholders equity ratio, at
the end of June 2017, was 337% compared to 206% at the end of
December 2016.
The Group's liquidity amounted to $315
million at the end of June 2017.
Leverage ratio and interest cover ratio are not
applicable as of June 31, 2017 as a result of the French safeguard
procedure and US Chapter 11 procedure.
Consistent with the financial statements as of
December 31, 2016, it appears that reclassifying the financial debt
as a current liability is the most appropriate accounting treatment
according to IAS 1 for the interim financial statements authorized
for issue by the Board of Directors on July 27, 2017. This pure
accounting reclassification does not question the going concern
assumption. Together, the coordinated proceedings in France and the
U.S. prevented acceleration of the debt in France and stayed
enforcement in respect of the debt outside of France.
First Half 2017 comparison with First Half
2016
Consolidated Income Statements In
Million $ |
First Half 2016 |
First Half 2017 |
VariationYear-on-year |
Exchange rate euro/dollar |
1.11 |
1.08 |
NA |
Operating Revenue |
603.2 |
599.2 |
(1)% |
GGR |
360.4 |
378.7 |
5% |
Equipment |
117.5 |
85.4 |
(27)% |
Contractual Data Acquisition |
148.3 |
148.5 |
0% |
Elimination |
(23.0) |
(13.4) |
(42)% |
Gross Margin |
(20.5) |
6.0 |
129% |
EBITDAs before NRC |
130.9 |
148.7 |
14% |
GGR |
188.6 |
219.5 |
16% |
Equipment |
(10.5) |
(14.2) |
(35)% |
Contractual Data Acquisition |
(4.5) |
(26.1) |
(480)% |
Non-Operated Resources |
(14.7) |
(10.0) |
32% |
Corporate |
(17.6) |
(16.4) |
(7)% |
Eliminations |
(10.4) |
(4.1) |
(61)% |
NRC before impairment |
(7.2) |
(124.4) |
NA |
Operating Income before NRC |
(103.7) |
(70.7) |
32% |
GGR |
36.7 |
55.6 |
51% |
Equipment |
(29.1) |
(29.0) |
0% |
Contractual Data Acquisition |
(33.8) |
(51.3) |
(52)% |
Non-Operated Resources |
(49.2) |
(25.6) |
48% |
Corporate |
(17.6) |
(16.4) |
(7)% |
Eliminations |
(10.7) |
(4.0) |
(63)% |
NRC |
(7.2) |
(124.4) |
NA |
Operating Income after NRC |
(110.9) |
(195.1) |
(76)% |
Net Financial Costs |
(85.2) |
(96.6) |
13% |
Income Taxes |
(14.3) |
(24.1) |
69% |
Deferred Tax on Currency Translation |
1.6 |
1.0 |
(38)% |
Equity from Investments |
(0.1) |
0 |
(100)% |
Net Income |
(208.9) |
(314.8) |
(51)% |
Shareholder's Net Income |
(206.9) |
(313.3) |
(51)% |
Earnings per share in $ |
(10.64) |
(14.15) |
NA |
Earnings per share in € |
(9.58) |
(13.12) |
NA |
Cash Flow Statements In Million $ |
First Half2016 |
First Half2017 |
VariationYear-on-year |
EBITDAs before NRC |
130.9 |
148.7 |
14% |
Net tax paid |
(7.8) |
1.8 |
(123)% |
Change in Working Capital |
233.8 |
(44.6) |
(119)% |
Other items |
14.8 |
(19.3) |
(230)% |
Cash Flow provided by operating activities |
371.7 |
86.6 |
(77)% |
Paid Cost of Debt |
(74.8) |
(57.7) |
(23)% |
Capex (including change in fixed assets payables) |
(208.7) |
(145.2) |
(30)% |
Industrial |
(27.8) |
(22.3) |
(20)% |
R&D |
(18.1) |
(14.6) |
(19)% |
Multi-Client (Cash) |
(162.8) |
(108.3) |
(33)% |
Marine MC |
(141.4) |
(95.5) |
(32)% |
Land MC |
(21.4) |
(12.8) |
(40)% |
Proceeds from disposals of assets |
8.4 |
18.1 |
115% |
Free Cash Flow before Cash NRC |
96.6 |
(98.2) |
(202)% |
Cash NRC |
(88.3) |
(99.5) |
13% |
Free Cash Flow after Cash NRC |
8.3 |
(197.7) |
NA |
Non Cash Cost of Debt and Other Financial Items |
(9.9) |
(37.7) |
(281)% |
Specific items |
371.0 |
0.5 |
(100)% |
FX Impact |
(20.3) |
(77.3) |
(281)% |
Other variance non cash |
0 |
126.8 |
NA |
Change in Net Debt |
349.1 |
(185.4) |
(153)% |
Net debt |
2,150.4 |
2,497.0 |
16% |
Q2 2017 Conference call
An English language analysts' conference call is scheduled today
at 9:00 am (Paris time) - 8:00 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 UK call-in Access code |
+33(0) 1
76 77 22 26+44(0) 203 427 19162031528 |
About CGG:
CGG (www.cgg.com) 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 segments of Equipment, Acquisition and
Geology, Geophysics & Reservoir (GGR), CGG brings value across
all aspects of natural resource exploration and exploitation. CGG
employs around 5,500 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:
0013181864) and the New York Stock Exchange (in the form of
American Depositary Shares. NYSE: CGG).
Contacts
Group
Communications Christophe BarniniTel: + 33 1 64 47 38
11E-Mail: : invrelparis@cgg.com |
Investor RelationsCatherine LeveauTel: +33 1 64 47 34
89E-mail: : invrelparis@cgg.com |
CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2017
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Amounts in millions
of U.S.$, unless indicated |
June 30, 2017(unaudited) |
December 31, 2016 |
ASSETS |
|
|
Cash and cash
equivalents |
314.8 |
538.8 |
Trade accounts and
notes receivable, net |
459.3 |
434.8 |
Inventories and
work-in-progress, net |
282.4 |
266.3 |
Income tax assets |
97.4 |
112.2 |
Other current assets,
net |
121.6 |
105.8 |
Assets held for sale,
net |
17.0 |
18.6 |
Total current
assets |
1,292.5 |
1,476.5 |
Deferred tax
assets |
22.2 |
26.0 |
Investments and other
financial assets, net |
66.6 |
51.9 |
Investments in
companies under equity method |
212.9 |
190.5 |
Property, plant and
equipment, net |
350.1 |
708.6 |
Intangible assets,
net |
1,165.5 |
1,184.7 |
Goodwill, net |
1,229.6 |
1,223.3 |
Total non-current
assets |
3,046.9 |
3,385.0 |
TOTAL
ASSETS |
4,339.4 |
4,861.5 |
LIABILITIES AND
EQUITY |
|
|
Bank overdrafts |
- |
1.6 |
Current portion of
financial debt (1) |
2,759.2 |
2,782.1 |
Trade accounts and notes
payables |
143.1 |
157.4 |
Accrued payroll costs |
125.7 |
138.9 |
Income taxes payable |
31.5 |
31.6 |
Advance billings to
customers |
26.9 |
24.4 |
Provisions - current
portion |
58.6 |
110.7 |
Current liabilities
associated with funded receivables |
47.7 |
- |
Other current
liabilities |
111.1 |
140.2 |
Total current
liabilities |
3,303.8 |
3,386.9 |
Deferred tax
liabilities |
72.2 |
67.6 |
Provisions -
non-current portion |
115.9 |
162.1 |
Financial debt |
52.6 |
66.7 |
Other non-current
liabilities |
18.4 |
21.4 |
Total non-current
liabilities |
259.1 |
317.8 |
Common stock 26,834,403 shares authorized and 22,133,149 shares
with a €0.80 nominal value issued and outstanding at June 30, 2017
and 22,133,149 at December 31, 2016 |
20.3 |
20.3 |
Additional paid-in
capital |
1,850.0 |
1,850.0 |
Retained earnings |
(845.1) |
(272.3) |
Other Reserves |
93.6 |
171.1 |
Treasury shares |
(20.1) |
(20.1) |
Net income (loss) for the
period attributable to owners of CGG SA |
(313.3) |
(573.4) |
Cumulative income and
expense recognized directly in equity |
(0.8) |
(0.8) |
Cumulative translation
adjustment |
(43.4) |
(54.1) |
Equity attributable
to owners of CGG SA |
741.2 |
1,120.7 |
Non-controlling
interests |
35.3 |
36.1 |
Total
equity |
776.5 |
1,156.8 |
TOTAL LIABILITIES
AND EQUITY |
4,339.4 |
4,861.5 |
Closing
rates were U.S.$1.1412 per € and U.S.$1.0541 per € for June 30,
2017 and December 31, 2016, respectively.
- As of June 30, 2017, out of the U.S.$2,759.2 million of
financial debt classified as current liabilities only U.S.$99.2
million had a maturity of less than 12 months. As of December 31,
2016, out of the U.S.$2,782.1 million of financial debt classified
as current liabilities, only U.S.$100.1 million had a maturity of
less than 12 months. The rest of the financial debt appears as
current liabilities as the result of an accounting reclassification
due to the application of IAS 1. See Note 3 on financial debts for
further explanations.
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF
OPERATIONS
|
Six months ended June 30, |
Amounts in millions
of U.S.$, except per share data or unless indicated |
2017 |
2016 |
Operating
revenues |
|
599.2 |
|
603.2 |
Other income from
ordinary activities |
|
0.7 |
|
0.6 |
Total income from
ordinary activities |
|
599.9 |
|
603.8 |
Cost of operations |
|
(593.9) |
|
(624.3) |
Gross
profit |
|
6.0 |
|
(20.5) |
Research and
development expenses, net |
|
(15.8) |
|
(1.7) |
Marketing and selling
expenses |
|
(27.1) |
|
(32.5) |
General and
administrative expenses |
|
(40.0) |
|
(45.3) |
Other revenues
(expenses), net |
|
(118.2) |
|
(10.9) |
Operating
income |
|
(195.1) |
|
(110.9) |
Expenses related to
financial debt |
|
(97.1) |
|
(85.5) |
Income provided by cash
and cash equivalents |
|
1.6 |
|
0.9 |
Cost of financial
debt, net |
|
(95.5) |
|
(84.6) |
Other financial income
(loss) |
|
(1.1) |
|
(0.6) |
Income (loss) of
consolidated companies before income taxes |
|
(291.7) |
|
(196.1) |
Deferred taxes on
currency translation |
|
1.0 |
|
1.6 |
Other income taxes |
|
(24.1) |
|
(14.3) |
Total income
taxes |
|
(23.1) |
|
(12.7) |
Net income (loss)
from consolidated companies |
|
(314.8) |
|
(208.8) |
Share of income (loss)
in companies accounted for under equity method |
|
- |
|
(0.1) |
Net income
(loss) |
|
(314.8) |
|
(208.9) |
Attributable to : |
|
|
|
|
Owners of CGG SA |
$ |
(313.3) |
|
(206.9) |
Owners of CGG SA
(1) |
€ |
(290.5) |
|
(186.4) |
Non-controlling
interests |
$ |
(1.5) |
|
(2.0) |
|
|
|
|
|
Weighted average number
of shares outstanding (2) |
|
22,133,149 |
|
19,457,713 |
Dilutive potential
shares from stock-options |
|
(3) |
|
(3) |
Dilutive potential
shares from performance share plans |
|
(3) |
|
(3) |
Dilutive potential
shares from convertible bonds |
|
(3) |
|
(3) |
Dilutive weighted
average number of shares outstanding adjusted when dilutive
(2) |
|
22,133,149 |
|
19,457,713 |
Net income (loss)
per share |
|
|
|
|
Basic |
$ |
(14.15) |
|
(10.64) |
Basic (1) |
€ |
(13.12) |
|
(9.58) |
Diluted |
$ |
(14.15) |
|
(10.64) |
Diluted (1) |
€ |
(13.12) |
|
(9.58) |
___________________
- Converted at the average exchange rate of U.S.$1.0784 and
U.S.$1.1101 per € for the periods ended June 30, 2017 and 2016,
respectively.
- As a result of the July 20, 2016 reverse stock split, the
calculation of basic and diluted earnings per share has been
adjusted retrospectively. Number of ordinary shares outstanding has
been adjusted to reflect the proportionate change in the number of
shares.
- As our net result was a loss, stock-options, performance shares
plans and convertible bonds had an accretive effect; as a
consequence, potential shares linked to those instruments were not
taken into account in the dilutive weighted average number of
shares, or in the calculation of diluted loss per share.
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF
OPERATIONS
|
Three months ended June 30, |
Amounts in millions
of U.S.$, except per share data or unless indicated |
2017 |
2016 |
Operating
revenues |
|
349.8 |
|
290.2 |
Other income from
ordinary activities |
|
0.3 |
|
0.3 |
Total income from
ordinary activities |
|
350.1 |
|
290.5 |
Cost of operations |
|
(317.6) |
|
(288.8) |
Gross
profit |
|
32.5 |
|
1.7 |
Research and
development expenses, net |
|
(7.6) |
|
10.4 |
Marketing and selling
expenses |
|
(14.0) |
|
(16.5) |
General and
administrative expenses |
|
(19.8) |
|
(21.2) |
Other revenues
(expenses), net |
|
(89.3) |
|
1.5 |
Operating
income |
|
(98.2) |
|
(24.1) |
Expenses related to
financial debt |
|
(49.4) |
|
(42.1) |
Income provided by cash
and cash equivalents |
|
0.7 |
|
0.5 |
Cost of financial
debt, net |
|
(48.7) |
|
(41.6) |
Other financial income
(loss) |
|
0.5 |
|
(2.3) |
Income (loss) of
consolidated companies before income taxes |
|
(146.4) |
|
(68.0) |
Deferred taxes on
currency translation |
|
0.8 |
|
(0.2) |
Other income taxes |
|
(21.6) |
|
(6.2) |
Total income
taxes |
|
(20.8) |
|
(6.4) |
Net income (loss)
from consolidated companies |
|
(167.2) |
|
(74.4) |
Share of income (loss)
in companies accounted for under equity method |
|
(2.5) |
|
(4.8) |
Net income
(loss) |
|
(169.7) |
|
(79.2) |
Attributable to : |
|
|
|
|
Owners of CGG SA |
$ |
(169.2) |
|
(77.8) |
Owners of CGG SA
(1) |
€ |
(154.9) |
|
(67.9) |
Non-controlling
interests |
$ |
(0.5) |
|
(1.4) |
|
|
|
|
|
Weighted average number
of shares outstanding (2) |
|
22,133,149 |
|
22,133,149 |
Dilutive potential
shares from stock-options |
|
(3) |
|
(3) |
Dilutive potential
shares from performance share plans |
|
(3) |
|
(3) |
Dilutive potential
shares from convertible bonds |
|
(3) |
|
(3) |
Dilutive weighted
average number of shares outstanding adjusted when dilutive
(2) |
|
22,133,149 |
|
22,133,149 |
Net income (loss)
per share |
|
|
|
|
Basic |
$ |
(7.64) |
|
(3.52) |
Basic (1) |
€ |
(7.00) |
|
(3.07) |
Diluted |
$ |
(7.64) |
|
(3.52) |
Diluted (1) |
€ |
(7.00) |
|
(3.07) |
___________________
- Corresponding to the half-year amount in euros less the first
quarter amount in euros.
- As a result of the July 20, 2016 reverse stock split, the
calculation of basic and diluted earnings per share has been
adjusted retrospectively. Number of ordinary shares outstanding has
been adjusted to reflect the proportionate change in the number of
shares.
- As our net result was a loss, stock-options, performance shares
plans and convertible bonds had an accretive effect; as a
consequence, potential shares linked to those instruments were not
taken into account in the dilutive weighted average number of
shares, or in the calculation of diluted loss per share.
UNAUDITED ANALYSIS BY SEGMENT
|
Six months ended June 30, |
|
2017 |
|
2016 |
|
In millions of
U.S.$, except for assets and capital employed in billions of
U.S.$ |
Contrac tual Data Acqui sition |
Non Opera ted Resour ces |
GGR |
Equip ment |
Elimi nationsand other |
Conso lidated Total |
|
Contrac tual Data Acqui sition |
Non Opera ted Resour ces |
GGR |
Equip ment |
Elimi nationsand other |
Conso lidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliated customers |
147.1 |
- |
378.7 |
73.4 |
- |
599.2 |
|
145.0 |
- |
360.4 |
97.8 |
- |
603.2 |
|
Inter-segment
revenues |
1.4 |
- |
- |
12.0 |
(13.4) |
- |
|
3.3 |
- |
- |
19.7 |
(23.0) |
- |
|
Operating
revenues |
148.5 |
- |
378.7 |
85.4 |
(13.4) |
599.2 |
|
148.3 |
- |
360.4 |
117.5 |
(23.0) |
603.2 |
|
Depreciation and
amortization (excluding multi-client surveys) |
(25.1) |
(15.6) |
(40.2) |
(14.7) |
- |
(95.6) |
|
(29.3) |
(34.5) |
(51.0) |
(18.7) |
(0.2) |
(133.7) |
|
Depreciation and
amortization of multi-client surveys |
- |
- |
(136.6) |
- |
- |
(136.6) |
|
- |
- |
(123.1) |
- |
- |
(123.1) |
|
Operating
income |
(51.3) |
(150.0) |
55.6 |
(29.0) |
(20.4) |
(195.1) |
|
(33.8) |
(56.4) |
36.7 |
(29.1) |
(28.3) |
(110.9) |
|
Share of income in
companies accounted for under equity method (1) |
2.8 |
(2.8) |
- |
- |
- |
- |
|
(0.1) |
- |
- |
- |
- |
(0.1) |
|
Earnings before
interest and tax (2) |
(48.5) |
(152.8) |
55.6 |
(29.0) |
(20.4) |
(195.1) |
|
(33.9) |
(56.4) |
36.7 |
(29.1) |
(28.3) |
(111.0) |
|
Capital
expenditures(excluding multi-client surveys) (3) |
8.0 |
- |
21.8 |
7.8 |
(0.7) |
36.9 |
|
9.3 |
- |
25.4 |
5.7 |
5.5 |
45.9 |
|
Investments in
multi-client surveys, net cash |
- |
- |
108.3 |
- |
- |
108.3 |
|
- |
- |
162.8 |
- |
- |
162.8 |
|
Capital
employed |
0.4 |
- |
2.3 |
0.6 |
- |
3.3 |
|
0.5 |
0.2 |
2.3 |
0.7 |
- |
3.7 |
|
Total identifiable
assets |
0.6 |
0.1 |
2.6 |
0.7 |
- |
4.0 |
|
0.7 |
0.4 |
2.7 |
0.7 |
- |
4.5 |
|
- Share of operating results of companies accounted for under the
equity method was U.S.$2.7 million and U.S.$(0.3) million for the
six months ended June 30, 2017 and 2016, respectively.
- At the Group level, Operating Income and EBIT before costs
related to the Transformation Plan, both amounted to U.S.$(70.7)
million, for the six months ended June 30, 2017, compared to
U.S.$(103.7) million and U.S.$(103.8) million, respectively, for
the six months ended June 30, 2016.
(a) For the six
months ended June 30, 2017, Non-Operated Resources EBIT included
U.S.$(124.4) million related to the Transformation Plan. For the
six months ended June 30, 2016, Non-Operated Resources EBIT
included U.S.$(7.2) million related to the Transformation Plan.
For the six months ended June 30, 2017,
"eliminations and other" included U.S.$(16.4) million of general
corporate expenses and U.S.$(4.0) million of intra-group margin.
For the six months ended June 30, 2016, "eliminations and other"
included U.S.$(17.6) million of general corporate expenses and
U.S.$(10.7) million of intra-group margin.
- Capital expenditures included capitalized development
costs of U.S.$(14.6) million and U.S.$(18.1) million for the six
months ended June 30, 2017 and 2016, respectively. "Eliminations
and other" corresponded to the variance of suppliers of assets for
the period.
UNAUDITED ANALYSIS BY SEGMENT
|
Three months ended June 30, |
|
2017 |
|
2016 |
|
In millions of
U.S.$, except for assets and capital employed in billions of
U.S.$ |
Contrac tual Data Acqui sition |
Non Opera ted Resour ces |
GGR |
Equip ment |
Elimi nationsand other |
Conso lidated Total |
|
Contrac tual Data Acqui sition |
Non Opera ted Resour ces |
GGR |
Equip ment |
Elimi nationsand other |
Conso lidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliated customers |
81.3 |
- |
220.7 |
47.8 |
- |
349.8 |
|
57.8 |
- |
196.4 |
36.0 |
- |
290.2 |
|
Inter-segment
revenues |
0.7 |
- |
- |
5.2 |
(5.9) |
- |
|
1.4 |
- |
- |
8.3 |
(9.7) |
- |
|
Operating
revenues |
82.0 |
- |
220.7 |
53.0 |
(5.9) |
349.8 |
|
59.2 |
- |
196.4 |
44.3 |
(9.7) |
290.2 |
|
Depreciation and
amortization (excluding multi-client surveys) |
(11.7) |
(3.3) |
(20.8) |
(7.1) |
0.2 |
(42.7) |
|
(8.9) |
(17.5) |
(28.3) |
(8.9) |
(0.2) |
(63.8) |
|
Depreciation and
amortization of multi-client surveys |
- |
- |
(88.9) |
- |
- |
(88.9) |
|
- |
- |
(76.4) |
- |
- |
(76.4) |
|
Operating
income |
(12.7) |
(100.0) |
37.3 |
(12.6) |
(10.2) |
(98.2) |
|
0.5 |
(24.3) |
28.8 |
(18.2) |
(10.9) |
(24.1) |
|
Share of income in
companies accounted for under equity method (1) |
0.3 |
(2.8) |
- |
- |
- |
(2.5) |
|
(4.8) |
- |
- |
- |
- |
(4.8) |
|
Earnings before
interest and tax (2) |
(12.4) |
(102.8) |
37.3 |
(12.6) |
(10.2) |
(100.7) |
|
(4.3) |
(24.3) |
28.8 |
(18.2) |
(10.9) |
(28.9) |
|
Capital
expenditures(excluding multi-client surveys) (3) |
3.4 |
- |
10.6 |
4.7 |
(1.2) |
17.5 |
|
5.2 |
- |
12.9 |
3.8 |
4.2 |
26.1 |
|
Investments in
multi-client surveys, net cash |
- |
- |
60.0 |
- |
- |
60.0 |
|
- |
- |
92.9 |
- |
- |
92.9 |
|
- Share of operating results of companies accounted for under the
equity method was U.S.$(1.0) million and U.S.$(9.0) million for the
three months ended June 30, 2017 and 2016, respectively.
- At the Group level, Operating Income and EBIT before costs
related to the Transformation Plan amounted to U.S.$(3.5) million
and U.S.$(6.0) million, respectively, for the three months ended
June 30, 2017, compared to U.S.$(22.4) million and U.S.$(27.2)
million, respectively, for the three months ended June 30,
2016.
(b) For the three
months ended June 30, 2017, Non-Operated Resources EBIT included
U.S.$(94.7) million related to the Transformation Plan. For the
three months ended June 30, 2016, Non-Operated Resources EBIT
included U.S.$(1.7) million related to the Transformation Plan.
For the three months ended June 30, 2017,
"eliminations and other" included U.S.$(8.3) million of general
corporate expenses and U.S.$(1.9) million of intra-group margin.
For the three months ended June 30, 2016, "eliminations and other"
included U.S.$(8.0) million of general corporate expenses and
U.S.$(2.9) million of intra-group margin.
- Capital expenditures included capitalized development
costs of U.S.$(8.1) million and U.S.$(8.9) million for the three
months ended June 30, 2017 and 2016, respectively. "Eliminations
and other" corresponded to the variance of suppliers of assets for
the period.
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CASH
FLOWS
|
Six months ended June 30, |
Amounts in millions
of U.S.$ |
2017 |
2016 |
|
|
|
|
|
OPERATING |
|
|
|
|
Net income (loss) |
|
(314.8) |
|
(208.9) |
Depreciation and
amortization |
|
95.6 |
|
133.7 |
Multi-client surveys
depreciation and amortization |
|
136.6 |
|
123.1 |
Depreciation and
amortization capitalized in multi-client surveys |
|
(12.9) |
|
(22.0) |
Variance on
provisions |
|
(30.9) |
|
(82.3) |
Stock based compensation
expenses |
|
0.1 |
|
(0.2) |
Net (gain) loss on
disposal of fixed and financial assets |
|
(27.4) |
|
3.2 |
Equity (income) loss of
investees |
|
- |
|
0.1 |
Dividends received from
investments in companies under equity method |
|
2.0 |
|
13.0 |
Other non-cash items |
|
63.0 |
|
0.4 |
Net cash-flow including
net cost of financial debt and income tax |
|
(88.7) |
|
(39.9) |
Less net cost of financial
debt |
|
95.5 |
|
84.6 |
Less income tax
expense |
|
23.1 |
|
12.7 |
Net cash-flow excluding
net cost of financial debt and income tax |
|
29.9 |
|
57.4 |
Income tax paid |
|
1.8 |
|
(7.8) |
Net cash-flow before
changes in working capital |
|
31.7 |
|
49.6 |
- change in trade
accounts and notes receivables |
|
(37.6) |
|
340.4 |
- change in
inventories and work-in-progress |
|
0.9 |
|
23.8 |
- change in other
current assets |
|
(5.1) |
|
(6.3) |
- change in trade
accounts and notes payable |
|
(21.8) |
|
(67.4) |
- change in other
current liabilities |
|
19.0 |
|
(49.1) |
Impact of changes in
exchange rate on financial items |
|
- |
|
(7.6) |
Net cash-flow
provided by operating activities |
|
(12.9) |
|
283.4 |
INVESTING |
|
|
|
|
Total capital expenditures
(including variation of fixed assets suppliers, excluding
multi-client surveys) |
|
(36.9) |
|
(45.9) |
Investments in
multi-client surveys, net cash |
|
(108.3) |
|
(162.8) |
Proceeds from disposals of
tangible & intangible assets |
|
18.1 |
|
8.4 |
Total net proceeds from
financial assets |
|
4.5 |
|
6.1 |
Acquisition of
investments, net of cash & cash equivalents acquired |
|
- |
|
- |
Variation in loans
granted |
|
(0.7) |
|
1.3 |
Variation in subsidies for
capital expenditures |
|
- |
|
(0.6) |
Variation in other
non-current financial assets |
|
1.6 |
|
(0.6) |
Net cash-flow used
in investing activities |
|
(121.7) |
|
(194.1) |
FINANCING |
|
|
|
|
Repayment of long-term
debt |
|
(25.3) |
|
(478.6) |
Total issuance of
long-term debt |
|
2.3 |
|
163.3 |
Lease repayments |
|
(2.9) |
|
(4.3) |
Change in short-term
loans |
|
(1.6) |
|
0.9 |
Financial expenses
paid |
|
(57.7) |
|
(74.8) |
Net proceeds from capital
increase: |
|
- |
|
- |
- from
shareholders |
|
- |
|
367.5 |
- from
non-controlling interests of integrated companies |
|
- |
|
- |
Dividends paid and share
capital reimbursements: |
|
- |
|
- |
- to
shareholders |
|
- |
|
- |
- to non-controlling
interests of integrated companies |
|
- |
|
(4.4) |
Acquisition/disposal from
treasury shares |
|
- |
|
0.5 |
Net cash-flow
provided by (used in) financing activities |
|
(85.2) |
|
(29.9) |
Effects of exchange
rates on cash |
|
3.3 |
|
6.5 |
Impact of changes in
consolidation scope |
|
(7.5) |
|
(c) - |
Net increase
(decrease) in cash and cash equivalents |
|
(224.0) |
|
65.9 |
Cash and cash
equivalents at beginning of year |
|
538.8 |
|
385.3 |
Cash and cash
equivalents at end of period |
|
314.8 |
|
451.2 |
Attachments:
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