FORM
6-K
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule
13a-
16 or
15d-
16
of the Securities Exchange Act of 1934
For the month of May 2018
CGG
Tour Maine Montparnasse - 33 Avenue du Maine BP 191 - 75755 PARIS CEDEX 15 (address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form
20-F
or Form
40-F.
Form
20-F ☒ Form
40-F ☐
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule
12g3-2(b)
under the Securities Exchange Act of 1934.
Yes ☐ No ☒
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule
12g3-2(b):
82
|
|
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|
|
CGG Announces its 2018 First Quarter Results
|
2018 Q1: strengthened segment EBITDAs margin
in gradual market improvement
|
|
|
IFRS figures
1
: revenue at $246m, OPINC at $(67)m, net income at $647m
|
|
|
|
Segment revenue
2
at
$295m
, up 18%
year-on-year
|
|
|
|
GGR: solid activity increase
|
|
|
|
Equipment: robust Land volume recovery
|
|
|
|
Contractual Data Acquisition: continued challenging market environment
|
|
|
|
Segment EBITDAs
2
at
$53m
, up 85%
year-on-year,
an 18% margin
|
|
|
|
Segment OPINC
2
at
$(22)m
|
Financial restructuring plan fully implemented
|
|
|
Financial restructuring plan implementation:
Full success of the January 2018 rights issue and all new instruments delivered on February 21, 2018
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|
Restored capital structure
with net debt of $659m at end of March, liquidity of $538m and leverage ratio at 1.7x
|
Reiterated 2018 outlook
|
|
|
Segment revenue
2
expected
up at c. $1.5bn
+/- 5%
|
|
|
|
Segment EBITDAs
2
margin
within
35% to 40%
range
|
|
|
|
Multi-Client cash capex
at
$275/325m
with cash prefunding rate above 70% (79% in Q1 2018)
|
|
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|
Industrial
and
R&D capex
at
$100/135m
|
1
|
Based on transitory IFRS 15 first time application
|
2
|
Segment figures presented before IFRS 15 and
Non-Recurring
Charges (NRC)
|
PARIS, France
May 17
th
2018
CGG
(ISIN: FR0013181864 NYSE: CGG),
world leader in Geoscience
, announced today its 2018 first quarter unaudited results.
Commenting on these results, Sophie Zurquiyah, CGG CEO, said:
Our first quarter results are in line with expectations, with solid revenue growth and an improvement in our EBITDAs margin compared to the first
quarter of 2017. These results continue to confirm an upward trend initiated in 2017 that is bringing improved volumes to GGR and Equipment. Contractual Data Acquisition activities remain challenged by low demand and deteriorated price conditions.
In the current context of strengthening oil prices, we observe a gradual market improvement, even as the major oil companies remain very cautious
in their spending. In this environment, we confirm our revenue growth and EBITDAs margin targets for 2018.
The restructuring of CGG was
successfully completed at the end of February and our balance sheet has been restored. My ambition, as the new CEO, and with the commitment of all our teams, is to return CGG to a business of sustainable and profitable growth, paving a new path to
success for all our shareholders, clients and employees
.
Page 2
Post-closing events
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|
|
April 24th: Completion of the first lien refinancing
|
CGG S.A. announced the issuance by its
wholly-owned indirect subsidiary, CGG Holding (U.S.) Inc., of $300 million in aggregate principal amount of 9.000% First Lien Senior Secured Notes due 2023 and 280 million in aggregate principal amount of 7.875% First Lien Senior
Secured Notes due 2023. These new first lien senior secured notes represent a total principal amount of $645m at a weighted average coupon of 8.40%. The cumulated savings related to such refinancing over the period running up to February 2021
(original
non-call
period) amount to c. $70m.
|
|
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April 26th: Renewal of the governance
|
CGGs Board of Directors, meeting on April 26, 2018,
elected Philippe Salle as Chairman of the Board of Directors. Sophie Zurquiyah took up her position of CEO of the Group and was appointed director by the general meeting on the same day. Since the beginning of the year, CGG Board of Directors has
completed the process of renewing its governance with the appointment of 6 new Directors.
Transitory first time application of IFRS 15
The application of IFRS 15 does not result in any significant change to the Groups revenue recognition policies but for multi-clients
pre-commitments.
CGGs preliminary interpretation of the new standard was that the historical method, relying on percentage of completion principles, was the best accounting solution to timely provide a fair
vision of the industrial and financial performance of the Company and was compliant with the new IFRS standard. However, our auditors technical panel eventually concluded early 2018 that it was not the case.
Following this determination, CGG investigated the merits and the practicability of an alternative revenue recognition policy, based on two performance
obligations: one service with revenues to be recognized over time and weighting on average between
80%-95%
of total obligations, and one corresponding to the final processed data with revenues to be recognized
only upon delivery. This alternative revenue recognition policy has, however, not been endorsed by the Groups auditors and the regulators of the financial markets where the Groups securities are listed. In addition, some other seismic
players have decided to implement IFRS 15 in Q1 2018 through a revenue recognition policy for
pre-commitments
based on a single performance obligation and deferring the recognition of revenues upon delivery of
final processed data.
In that context and in the absence of a finalized IFRS 15 accounting policy, CGG decided to present a dual approach in the
Groups first quarter 2018 results:
(i)
|
one set of figures (the Segment Figures) corresponding to the figures used for internal management reporting purposes and produced in accordance with the Groups historical method (percentage of
completion) and
|
(ii)
|
a second set of figures (the IFRS figures) in line with the accounting practice adopted by some other seismic players as described above, with
pre-commitment
revenue
recognized in full only upon delivery of the final data.
|
CGG intends, through further discussions with its auditors and with the
regulators, to continue advocating for the IFRS 15 compliance of the alternative revenue recognition policy described above based on the two distinct performance obligations contained in these contracts. This approach would allow the Company going
forward to base its financial communication only on its IFRS accounts rather than on multiple sets of figures. The Company aims to fix a definitive approach with its auditors and the regulators prior to the release of the half-year 2018 financial
statements.
Page 3
Key IFRS Figures - First Quarter 2018
|
|
|
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|
|
|
|
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|
In million $
|
|
First Quarter
2017*
|
|
|
Fourth Quarter
2017*
|
|
|
First Quarter
2018
|
|
Group Revenue
|
|
|
249.4
|
|
|
|
400.7
|
|
|
|
245.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
(96.9
|
)
|
|
|
(8.0
|
)
|
|
|
(67.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity from investments
|
|
|
2.5
|
|
|
|
(8.9
|
)
|
|
|
1.3
|
|
Net cost of financial debt
|
|
|
(46.8
|
)
|
|
|
(46.8
|
)
|
|
|
(33.2
|
)
|
Other financial income (loss)
|
|
|
(1.6
|
)
|
|
|
1.0
|
|
|
|
762.8
|
|
Income Taxes
|
|
|
(2.3
|
)
|
|
|
(12.2
|
)
|
|
|
(17.2
|
)
|
Net Income
|
|
|
(145.1
|
)
|
|
|
(74.9
|
)
|
|
|
646.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt
|
|
|
2,334.9
|
|
|
|
2,639.9
|
|
|
|
659.3
|
|
Capital Employed
|
|
|
3,342.0
|
|
|
|
3,168.0
|
|
|
|
3,149.4
|
|
*
|
Previous periods are not restated as per IFRS 15 guidelines
|
Key Segment Figures -
First Quarter 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
In million $
|
|
First Quarter
2017
|
|
|
Fourth Quarter
2017
|
|
|
First Quarter
2018
|
|
Segment Revenue
|
|
|
249.4
|
|
|
|
400.7
|
|
|
|
294.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITDAs
|
|
|
28.7
|
|
|
|
134.1
|
|
|
|
53.0
|
|
Group EBITDAs margin
|
|
|
11.5
|
%
|
|
|
33.5
|
%
|
|
|
18.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Income
|
|
|
(67.2
|
)
|
|
|
17.5
|
|
|
|
(22.3
|
)
|
Opinc margin
|
|
|
(26.9
|
)%
|
|
|
4.4
|
%
|
|
|
(7.6
|
)%
|
Non-recurring
charges (NRC)
|
|
|
(29.7
|
)
|
|
|
(25.5
|
)
|
|
|
(33.9
|
)
|
IFRS 15 adjustment
|
|
|
na
|
|
|
|
na
|
|
|
|
(10.9
|
)
|
IFRS Operating Income
|
|
|
(96.9
|
)
|
|
|
(8.0
|
)
|
|
|
(67.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity from investments
|
|
|
2.5
|
|
|
|
(8.9
|
)
|
|
|
1.3
|
|
Net Financial Costs current part
|
|
|
(48.4
|
)
|
|
|
(45.8
|
)
|
|
|
(30.4
|
)
|
Non-recurring
financial items
|
|
|
0
|
|
|
|
0
|
|
|
|
760.0
|
|
Income Taxes
|
|
|
(2.3
|
)
|
|
|
(12.2
|
)
|
|
|
(17.2
|
)
|
Net Income
|
|
|
(145.1
|
)
|
|
|
(74.9
|
)
|
|
|
646.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Cash Flow
|
|
|
34.4
|
|
|
|
143.4
|
|
|
|
62.8
|
|
IFRS Operating Cash Flow
|
|
|
(10.8
|
)
|
|
|
117.0
|
|
|
|
7.1
|
|
Segment Free Cash Flow
|
|
|
(74.3
|
)
|
|
|
13.4
|
|
|
|
(39.9
|
)
|
IFRS Free Cash Flow
|
|
|
(119.5
|
)
|
|
|
(13.0
|
)
|
|
|
(95.6
|
)
|
Net Debt
|
|
|
2,334.9
|
|
|
|
2,639.9
|
|
|
|
659.3
|
|
Capital Employed
|
|
|
3,342.0
|
|
|
|
3,168.0
|
|
|
|
3,179.7
|
|
Page 4
Key figures bridge: Segment to IFRS - First Quarter 2018
|
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|
|
|
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|
|
Q1 2018 P&L items
In million $
|
|
Segment
figures
|
|
|
IFRS 15
adjustments
|
|
|
NRC*
adjustments
|
|
|
IFRS figures
|
|
Total Revenue
|
|
|
294.7
|
|
|
|
(49.1
|
)
|
|
|
0
|
|
|
|
245.6
|
|
OPINC
|
|
|
(22.3
|
)
|
|
|
(10.9
|
)
|
|
|
(33.9
|
)
|
|
|
(67.1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2018 Cash Flow Statement items
In million $
|
|
Segment
figures
|
|
|
IFRS 15
adjustments
|
|
|
NRC
adjustments
|
|
|
IFRS figures
|
|
EBITDAs
|
|
|
53.0
|
|
|
|
(49.1
|
)
|
|
|
(33.9
|
)
|
|
|
(30.0
|
)
|
Change in Working Capital & Provisions
|
|
|
31.0
|
|
|
|
49.1
|
|
|
|
(21.8
|
)
|
|
|
58.3
|
|
Cash Flow from Operations
|
|
|
62.8
|
|
|
|
0
|
|
|
|
(55.7
|
)
|
|
|
7.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening Balance Sheet - January 1st 2018
In million $
|
|
Segment
figures
|
|
|
IFRS 15
adjustments
|
|
|
NRC
adjustments
|
|
|
IFRS figures
|
|
MC Data Library NBV
|
|
|
831.2
|
|
|
|
119.4
|
|
|
|
0
|
|
|
|
950.6
|
|
Other current liabilities
|
|
|
123.1
|
|
|
|
130.6
|
|
|
|
0
|
|
|
|
253.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing Balance Sheet - March 31st 2018
In million $
|
|
Segment
figures
|
|
|
IFRS 15
adjustments
|
|
|
NRC
adjustments
|
|
|
IFRS figures
|
|
MC Data Library NBV
|
|
|
853.9
|
|
|
|
157.6
|
|
|
|
0
|
|
|
|
1,011.5
|
|
Other current liabilities
|
|
|
104.9
|
|
|
|
153.1
|
|
|
|
0
|
|
|
|
258.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Non-recurring
charges linked to Transformation Plan and Financial Restructuring
|
Page 5
First Quarter 2018 Financial Results by Operating Segment and before
non-recurring
charges
Geology, Geophysics & Reservoir (GGR)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GGR
In million $
|
|
First
Quarter
2017
|
|
|
Fourth
Quarter
2017
|
|
|
First
Quarter
2018
|
|
|
Variation
Year-on-
year
|
|
|
Variation
Quarter-
to-
quarter
|
|
Segment Revenue
|
|
|
158.0
|
|
|
|
255.0
|
|
|
|
185.1
|
|
|
|
17
|
%
|
|
|
(27
|
)%
|
Multi-Client
|
|
|
72.2
|
|
|
|
158.6
|
|
|
|
84.4
|
|
|
|
17
|
%
|
|
|
(47
|
)%
|
Prefunding
|
|
|
53.2
|
|
|
|
72.1
|
|
|
|
49.2
|
|
|
|
(8
|
)%
|
|
|
(32
|
)%
|
After-Sales
|
|
|
19.0
|
|
|
|
86.5
|
|
|
|
35.2
|
|
|
|
85
|
%
|
|
|
(59
|
)%
|
Subsurface Imaging & Reservoir (SIR)
|
|
|
85.8
|
|
|
|
96.4
|
|
|
|
100.7
|
|
|
|
17
|
%
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITDAs
|
|
|
80.2
|
|
|
|
164.5
|
|
|
|
96.9
|
|
|
|
21
|
%
|
|
|
(41
|
)%
|
Margin
|
|
|
50.8
|
%
|
|
|
64.5
|
%
|
|
|
52.4
|
%
|
|
|
160
|
bps
|
|
|
na
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Income
|
|
|
18.3
|
|
|
|
63.3
|
|
|
|
38.4
|
|
|
|
110
|
%
|
|
|
(39
|
)%
|
Margin
|
|
|
11.6
|
%
|
|
|
24.8
|
%
|
|
|
20.7
|
%
|
|
|
910
|
bps
|
|
|
(410)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity from Investments
|
|
|
0
|
|
|
|
(0.2
|
)
|
|
|
(0.5
|
)
|
|
|
na
|
|
|
|
(150
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Employed
(in billion $)
|
|
|
2.3
|
|
|
|
2.2
|
|
|
|
2.2
|
|
|
|
na
|
|
|
|
na
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GGR Segment Revenue
was $185 million, up 17%
year-on-year
and down 27% sequentially.
|
|
|
Multi-Client revenue
was $84 million, up 17%
year-on-year
and down 47% sequentially. 44% of the fleet was allocated to
multi-client programs compared to 29% in Q1 2017 and 75% in Q4 2017. Multi-client sales were the highest in Brazil and North Sea.
|
|
|
|
Prefunding revenue
was $49 million, down 8%
year-on-year
and 32% sequentially. Multi-client cash capex was at $62 million,
up 28%
year-on-year
and down 30% sequentially. The cash prefunding rate was at 79% versus 110% in Q1 2017 and 82% in Q4 2017.
|
|
|
|
After-sales were
$35 million, up 85%
year-on-year
and down 59% sequentially.
|
|
|
|
Subsurface Imaging
& Reservoir
revenue was $101 million, up 17%
year-on-year
and 4% sequentially, with
all businesses on track.
|
GGR Segment EBITDAs
was $97 million, a 52.4% margin.
GGR Segment Operating Income
was $38 million, a 20.7% margin. The multi-client depreciation rate totaled 53%, leading to a library Net Book Value
of $854 million at the end of March 2018, split 89% offshore and 11% onshore.
GGR Capital Employed
was stable at $2.2 billion at the end
of March 2018.
Page 6
Equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment
In million $
|
|
First
Quarter
2017
|
|
|
Fourth
Quarter
2017
|
|
|
First
Quarter
2018
|
|
|
Variation
Year-on-
year
|
|
|
Variation
Quarter-to-
quarter
|
|
Segment Revenue
|
|
|
32.4
|
|
|
|
116.0
|
|
|
|
65.7
|
|
|
|
103
|
%
|
|
|
(43
|
)%
|
External Revenue
|
|
|
25.6
|
|
|
|
105.9
|
|
|
|
49.2
|
|
|
|
92
|
%
|
|
|
(54
|
)%
|
Internal Revenue
|
|
|
6.8
|
|
|
|
10.1
|
|
|
|
16.5
|
|
|
|
143
|
%
|
|
|
63
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITDAs
|
|
|
(8.7
|
)
|
|
|
16.4
|
|
|
|
(2.6
|
)
|
|
|
70
|
%
|
|
|
(116
|
)%
|
Margin
|
|
|
(26.9
|
)%
|
|
|
14.1
|
%
|
|
|
(4.0
|
)%
|
|
|
na
|
|
|
|
na
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Income
|
|
|
(16.4
|
)
|
|
|
8.9
|
|
|
|
(9.9
|
)
|
|
|
40
|
%
|
|
|
(211
|
)%
|
Margin
|
|
|
(50.6
|
)%
|
|
|
7.7
|
%
|
|
|
(15.1
|
)%
|
|
|
na
|
|
|
|
na
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Employed
(in billion $)
|
|
|
0.6
|
|
|
|
0.6
|
|
|
|
0.6
|
|
|
|
na
|
|
|
|
na
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment Segment Revenue
was
$66 million, up 103%
year-on-year
and down 43% sequentially.
External sales were $49 million, up 92%
year-on-year
(down 54% sequentially) showing sign of a stronger market, especially on the Land side.
Internal sales were up at $17m, compared to $7m in Q1 2017.
Land equipment sales represented 78% of total sales, compared to 58% in the first quarter of 2017, driven notably by Unite deliveries.
Marine equipment sales represented 22% of total sales, compared to 42% in the first quarter of 2017, driven notably by various sentinel sections deliveries.
Equipment Segment EBITDAs
was $(3) million, a margin of (4.0)%.
Equipment Segment Operating Income
was $(10) million, a margin of (15.1)% notably due to an unfavorable mix product.
Equipment Capital Employed
was stable at $0.6 billion at the end of March 2018.
Page 7
Contractual Data Acquisition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual Data Acquisition
In million $
|
|
First
Quarter
2017
|
|
|
Fourth
Quarter
2017
|
|
|
First
Quarter
2018
|
|
|
Variation
Year-on-
year
|
|
|
Variation
Quarter-to-
quarter
|
|
Segment Revenue
|
|
|
66.5
|
|
|
|
41.5
|
|
|
|
61.3
|
|
|
|
(8
|
)%
|
|
|
48
|
%
|
External Revenue
|
|
|
65.8
|
|
|
|
39.8
|
|
|
|
60.4
|
|
|
|
(8
|
)%
|
|
|
52
|
%
|
Internal Revenue
|
|
|
0.7
|
|
|
|
1.7
|
|
|
|
0.9
|
|
|
|
29
|
%
|
|
|
(47
|
)%
|
Total Marine Acquisition
|
|
|
44.6
|
|
|
|
9.9
|
|
|
|
28.9
|
|
|
|
(35
|
)%
|
|
|
192
|
%
|
Total Land and Multi-Physics Acquisition
|
|
|
21.9
|
|
|
|
31.6
|
|
|
|
32.4
|
|
|
|
48
|
%
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITDAs
|
|
|
(25.2
|
)
|
|
|
(26.3
|
)
|
|
|
(25.1
|
)
|
|
|
0
|
%
|
|
|
5
|
%
|
Margin
|
|
|
(37.9
|
)%
|
|
|
(63.4
|
)%
|
|
|
(40.9
|
)%
|
|
|
(300
|
) bps
|
|
|
na
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Income
|
|
|
(38.6
|
)
|
|
|
(33.0
|
)
|
|
|
(34.4
|
)
|
|
|
11
|
%
|
|
|
(4
|
)%
|
Margin
|
|
|
(58.0
|
)%
|
|
|
(79.5
|
)%
|
|
|
(56.1
|
)%
|
|
|
190
|
bps
|
|
|
na
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity from Investments
|
|
|
2.5
|
|
|
|
(5.8
|
)
|
|
|
5.3
|
|
|
|
112
|
%
|
|
|
191
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Employed
(in billion $)
|
|
|
0.4
|
|
|
|
0.3
|
|
|
|
0.3
|
|
|
|
na
|
|
|
|
na
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual Data Acquisition Segment Revenue
was
$61 million, down 8%
year-on-year
and up 48% sequentially.
|
|
|
Marine Contractual Data Acquisition
revenue was $29 million, down 35%
year-on-year
and up 192% sequentially.
|
Our vessel availability rate was 93%. This compares to 91% in the first quarter of 2017 and 82% in the fourth quarter of 2017. Our vessel
production rate was 96%. This compares to 98% in the first quarter of 2017 and 97% in the fourth quarter of 2017.
The decrease in revenue
can be explained by the higher dedication to multi-client surveys, as 44% of the fleet was dedicated to multi-client programs versus 29% in the first quarter of 2017 (75% in the fourth quarter of 2017) and different type of contract this quarter. In
Q1 2017, we were executing a large contract for Pemex with
high-end
multi-source vessel setup.
|
|
|
Land and Multi-Physics Data Acquisition
revenue was $32 million, up 48%
year-on-year
and 3% sequentially. Land and Airborne
continued to recover from a very low point in Q1 2017.
|
Contractual Data Acquisition Segment EBITDAs
was $(25) million.
Contractual Data Acquisition Segment Operating Income
was $(34) million. Contractual Data Acquisition activities continued to suffer from a competitive
market in marine. Weather downtimes and more specifically an earthquake in Papua New Guinea affecting Land surveys operations, further impacted activities.
The equity from investments contribution can mainly be explained by the positive contribution from the ARGAS and SBGS JVs this quarter.
Contractual Data Acquisition Capital Employed
was stable at $0.3 billion at the end of March 2018.
Page 8
Non-Operated
Resources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Operated
Resources
In million $
|
|
First
Quarter
2017
|
|
|
Fourth
Quarter
2017
|
|
|
First
Quarter
2018
|
|
|
Variation
Year-on-
year
|
|
|
Variation
Quarter-
to-
quarter
|
|
Segment EBITDAs
|
|
|
(8.0
|
)
|
|
|
(2.8
|
)
|
|
|
(7.0
|
)
|
|
|
13
|
%
|
|
|
(150
|
)%
|
Segment Operating Income
|
|
|
(20.3
|
)
|
|
|
(4.1
|
)
|
|
|
(7.0
|
)
|
|
|
66
|
%
|
|
|
(71
|
)%
|
Equity from Investments
|
|
|
0
|
|
|
|
(2.9
|
)
|
|
|
(3.5
|
)
|
|
|
na
|
|
|
|
(21
|
)%
|
Capital Employed
(in billion $)
|
|
|
0
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
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 Segment EBITDAs
was $(7) million, including the restart costs of one vessel (Caribbean).
Non-Operated
Resources Segment Operating Income
was $(7) million.
The equity from investments includes the impact of 50% of the Global Seismic Shipping (GSS) JV, which we own with Eidesvik. Seven vessels were transferred to
GSS in Q2 2017: three are in operations for CGG, three are cold-stacked and one will come back in operations during Q2 2018.
Non-Operated
Resources Capital Employed
was stable at $0.1 billion at the end of March 2018.
Page 9
First Quarter 2018 Financial Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Income Statements
In Million $
|
|
First
Quarter
2017
|
|
|
Fourth
Quarter
2017
|
|
|
First
Quarter
2018
|
|
|
Variation
Year-on-
year
|
|
|
Variation
Quarter-to-
quarter
|
|
Exchange rate euro/dollar
|
|
|
1.06
|
|
|
|
1.18
|
|
|
|
1.22
|
|
|
|
na
|
|
|
|
na
|
|
Segment Revenue
|
|
|
249.4
|
|
|
|
400.7
|
|
|
|
294.7
|
|
|
|
18
|
%
|
|
|
(26
|
)%
|
GGR
|
|
|
158.0
|
|
|
|
255.0
|
|
|
|
185.1
|
|
|
|
17
|
%
|
|
|
(27
|
)%
|
Equipment
|
|
|
32.4
|
|
|
|
116.0
|
|
|
|
65.7
|
|
|
|
103
|
%
|
|
|
(43
|
)%
|
Contractual Data Acquisition
|
|
|
66.5
|
|
|
|
41.5
|
|
|
|
61.3
|
|
|
|
(8
|
)%
|
|
|
48
|
%
|
Elimination
|
|
|
(7.5
|
)
|
|
|
(11.8
|
)
|
|
|
(17.4
|
)
|
|
|
na
|
|
|
|
Na
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
|
(26.5
|
)
|
|
|
58.0
|
|
|
|
18.0
|
|
|
|
168
|
%
|
|
|
(69
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment EBITDAs
|
|
|
28.7
|
|
|
|
134.1
|
|
|
|
53.0
|
|
|
|
85
|
%
|
|
|
(60
|
)%
|
GGR
|
|
|
80.2
|
|
|
|
164.5
|
|
|
|
96.9
|
|
|
|
21
|
%
|
|
|
(41
|
)%
|
Equipment
|
|
|
(8.7
|
)
|
|
|
16.4
|
|
|
|
(2.6
|
)
|
|
|
70
|
%
|
|
|
(116
|
)%
|
Contractual Data Acquisition
|
|
|
(25.2
|
)
|
|
|
(26.3
|
)
|
|
|
(25.1
|
)
|
|
|
0
|
%
|
|
|
5
|
%
|
Non-Operated
Resources
|
|
|
(8.0
|
)
|
|
|
(2.8
|
)
|
|
|
(7.0
|
)
|
|
|
13
|
%
|
|
|
(150
|
)%
|
Corporate
|
|
|
(8.1
|
)
|
|
|
(13.8
|
)
|
|
|
(8.1
|
)
|
|
|
0
|
%
|
|
|
(41
|
)%
|
Eliminations
|
|
|
(1.5
|
)
|
|
|
(3.9
|
)
|
|
|
(1.1
|
)
|
|
|
na
|
|
|
|
na
|
|
NRC before impairment
|
|
|
(29.7
|
)
|
|
|
(25.5
|
)
|
|
|
(33.9
|
)
|
|
|
14
|
%
|
|
|
33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Income
|
|
|
(67.2
|
)
|
|
|
17.5
|
|
|
|
(22.3
|
)
|
|
|
67
|
%
|
|
|
(227
|
)%
|
GGR
|
|
|
18.3
|
|
|
|
63.3
|
|
|
|
38.4
|
|
|
|
110
|
%
|
|
|
(39
|
)%
|
Equipment
|
|
|
(16.4
|
)
|
|
|
8.9
|
|
|
|
(9.9
|
)
|
|
|
40
|
%
|
|
|
(211
|
)%
|
Contractual Data Acquisition
|
|
|
(38.6
|
)
|
|
|
(33.0
|
)
|
|
|
(34.4
|
)
|
|
|
11
|
%
|
|
|
(4
|
)%
|
Non-Operated
Resources
|
|
|
(20.3
|
)
|
|
|
(4.1
|
)
|
|
|
(7.0
|
)
|
|
|
66
|
%
|
|
|
(71
|
)%
|
Corporate
|
|
|
(8.1
|
)
|
|
|
(13.8
|
)
|
|
|
(8.1
|
)
|
|
|
0
|
%
|
|
|
(41
|
)%
|
Eliminations
|
|
|
(2.1
|
)
|
|
|
(3.8
|
)
|
|
|
(1.3
|
)
|
|
|
na
|
|
|
|
na
|
|
NRC
|
|
|
(29.7
|
)
|
|
|
(25.5
|
)
|
|
|
(33.9
|
)
|
|
|
14
|
%
|
|
|
33
|
%
|
IFRS 15 adjustment
|
|
|
na
|
|
|
|
na
|
|
|
|
(10.9
|
)
|
|
|
na
|
|
|
|
na
|
|
IFRS Operating Income
|
|
|
(96.9
|
)
|
|
|
(8.0
|
)
|
|
|
(67.1
|
)
|
|
|
31
|
%
|
|
|
(739
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Financial Costs current part
|
|
|
(48.4
|
)
|
|
|
(45.8
|
)
|
|
|
(30.4
|
)
|
|
|
(37
|
)%
|
|
|
(34
|
)%
|
Non-Recurring
Financial Items
|
|
|
0
|
|
|
|
0
|
|
|
|
760.0
|
|
|
|
na
|
|
|
|
na
|
|
Income Taxes
|
|
|
(2.3
|
)
|
|
|
(12.2
|
)
|
|
|
(17.2
|
)
|
|
|
648
|
%
|
|
|
41
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity from Investments
|
|
|
2.5
|
|
|
|
(8.9
|
)
|
|
|
1.3
|
|
|
|
(48
|
)%
|
|
|
115
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
(145.1
|
)
|
|
|
(74.9
|
)
|
|
|
646.6
|
|
|
|
na
|
|
|
|
na
|
|
Shareholders Net Income
|
|
|
(144.1
|
)
|
|
|
(76.9
|
)
|
|
|
645.2
|
|
|
|
na
|
|
|
|
na
|
|
Earnings per share in $
|
|
|
(3.13
|
)
|
|
|
(1.67
|
)
|
|
|
2.05
|
|
|
|
na
|
|
|
|
na
|
|
Earnings per share in
|
|
|
(2.94
|
)
|
|
|
(1.36
|
)
|
|
|
1.68
|
|
|
|
na
|
|
|
|
na
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenue
was $295 million, up 18%
year-on-year
and down 26% sequentially. The respective contributions from the Groups businesses were 63% from GGR, 17% from Equipment and 20% from Contractual Data
Acquisition.
Segment EBITDAs
was $53 million, an 18.0% margin, and $19 million after $(34) million of
Non-Recurring
Charges (NRC).
Segment Operating Income
was $(22) million, a (7.6)% margin, and $(56)
million after $(34) million of NRC. Excluding NOR, and to focus solely on the performance of our active Business Lines, Group Operating Income was $(15) million.
Page 10
Total
non-recurring
charges
(NRC)
were $34 million,
split as such:
|
|
|
$13 million of professional fees mainly linked to the financial restructuring; and
|
|
|
|
$21 million of other costs related to our Transformation Plan.
|
IFRS 15 adjustment
at operating
income level was $(11) million.
IFRS Operating Income
, after NRC and IFRS 15 adjustment, was $(67) million.
Equity from Investments
contribution was $1 million this quarter.
Net financial costs
for the current part were $30 million:
|
|
|
Cost of debt was $33 million. The total amount of interest paid during the quarter was $14 million
|
|
|
|
Other financial items were positive $3 million
|
Non-recurring
financial items
(NRFI) were positive $760 million:
|
|
|
Mainly due to the strong positive $771 million financial restructuring impact; and
|
|
|
|
$(11) million first lien refinancing costs (on a
prorata temporis
basis)
|
Income Taxes
were
$17 million.
Net Income
was $647 million.
After minority interests,
Net Income attributable to the owners of CGG
was a gain of $645 million / 528 million.
Page 11
Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Statements
In Million $
|
|
First
Quarter
2017
|
|
|
Fourth
Quarter
2017
|
|
|
First
Quarter
2018
|
|
|
Variation
Year-on-
year
|
|
|
Variation
Quarter-
to-quarter
|
|
Segment EBITDAs
|
|
|
28.7
|
|
|
|
134.1
|
|
|
|
53.0
|
|
|
|
85
|
%
|
|
|
(60
|
)%
|
Net tax paid
|
|
|
(3.1
|
)
|
|
|
1.9
|
|
|
|
(2.9
|
)
|
|
|
(6
|
)%
|
|
|
(253
|
)%
|
Segment Change in Working Capital & Provisions
|
|
|
13.9
|
|
|
|
13.4
|
|
|
|
31.0
|
|
|
|
123
|
%
|
|
|
131
|
%
|
Other items
|
|
|
(5.1
|
)
|
|
|
(6.0
|
)
|
|
|
(18.3
|
)
|
|
|
(259
|
)%
|
|
|
(205
|
)%
|
Segment Operating Cash Flow
|
|
|
34.4
|
|
|
|
143.4
|
|
|
|
62.8
|
|
|
|
83
|
%
|
|
|
(56
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paid Cost of Debt
|
|
|
(44.2
|
)
|
|
|
(12.8
|
)
|
|
|
(14.1
|
)
|
|
|
(68
|
)%
|
|
|
10
|
%
|
Capex
(including change in fixed assets payables)
|
|
|
(67.7
|
)
|
|
|
(120.0
|
)
|
|
|
(90.5
|
)
|
|
|
34
|
%
|
|
|
(25
|
)%
|
Industrial
|
|
|
(12.9
|
)
|
|
|
(18.9
|
)
|
|
|
(20.5
|
)
|
|
|
59
|
%
|
|
|
8
|
%
|
R&D
|
|
|
(6.5
|
)
|
|
|
(12.1
|
)
|
|
|
(8.0
|
)
|
|
|
23
|
%
|
|
|
(34
|
)%
|
Multi-Client (Cash)
|
|
|
(48.3
|
)
|
|
|
(89.0
|
)
|
|
|
(62.0
|
)
|
|
|
28
|
%
|
|
|
(30
|
)%
|
Marine MC
|
|
|
(36.9
|
)
|
|
|
(74.0
|
)
|
|
|
(53.3
|
)
|
|
|
44
|
%
|
|
|
(28
|
)%
|
Land MC
|
|
|
(11.4
|
)
|
|
|
(15.0
|
)
|
|
|
(8.7
|
)
|
|
|
(24
|
)%
|
|
|
(42
|
)%
|
Proceeds from disposals of assets
|
|
|
3.2
|
|
|
|
2.8
|
|
|
|
1.9
|
|
|
|
(41
|
)%
|
|
|
(32
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Free Cash Flow
|
|
|
(74.3
|
)
|
|
|
13.4
|
|
|
|
(39.9
|
)
|
|
|
46
|
%
|
|
|
(398
|
)%
|
Cash NRC
|
|
|
(45.2
|
)
|
|
|
(26.4
|
)
|
|
|
(55.7
|
)
|
|
|
23
|
%
|
|
|
111
|
%
|
IFRS Free Cash Flow
|
|
|
(119.5
|
)
|
|
|
(13.0
|
)
|
|
|
(95.6
|
)
|
|
|
20
|
%
|
|
|
(635
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non Cash Cost of Debt and Other Financial Items
|
|
|
(2.6
|
)
|
|
|
(35.6
|
)
|
|
|
(19.1
|
)
|
|
|
(635
|
)%
|
|
|
46
|
%
|
Specific items
|
|
|
(3.0
|
)
|
|
|
(3.3
|
)
|
|
|
2.7
|
|
|
|
190
|
%
|
|
|
182
|
%
|
Net proceeds from capital increase
|
|
|
0
|
|
|
|
0
|
|
|
|
127.2
|
|
|
|
na
|
|
|
|
na
|
|
FX Impact
|
|
|
(10.0
|
)
|
|
|
(17.3
|
)
|
|
|
0.4
|
|
|
|
104
|
%
|
|
|
102
|
%
|
Other variance non cash
|
|
|
111.8
|
|
|
|
0
|
|
|
|
1,965.0
|
|
|
|
na
|
|
|
|
na
|
|
Change in Net Debt
|
|
|
(23.3
|
)
|
|
|
(69.2
|
)
|
|
|
1,980.6
|
|
|
|
na
|
|
|
|
na
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt
|
|
|
2,334.9
|
|
|
|
2,639.9
|
|
|
|
659.3
|
|
|
|
(72
|
)%
|
|
|
(75
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Cash Flow
was $63 million compared to $34 million for the first quarter of 2017. Including
cash
Non-Recurring
Charges, the IFRS Operating Cash Flow was $7 million.
Global Capex
was
$94 million, up 37%
year-on-year
and down 24% sequentially.
|
|
|
Industrial capex
was $24 million, up 76%
year-on-year
and 5% sequentially
|
|
|
|
Research
& Development capex
was $8 million, up 23%
year-on-year
and down 34% sequentially
|
|
|
|
Multi-client cash capex
was $62 million, up 28%
year-on-year
and down 30% sequentially
|
After the payment of interest expenses and Capex,
Segment Free Cash Flow
was at $(40) million compared to $(74) million for the first quarter of 2017.
After cash NRC, mainly linked to the payment of financial restructuring fees, IFRS Free Cash Flow was at $(96) million.
Page 12
Balance Sheet
Group gross debt was $1.197 billion at the end of March 2018. Available cash was $538 million and Group
net debt
was $659 Million.
The Groups
liquidity
amounted to $538 million at the end of March 2018.
Following the issuance of New Shares, Creditor Shares 1 and Creditor Shares 2, the Companys share capital as of February 21, 2018 amounted to
5,785,750.02, divided into 578,575,002 shares with a nominal value of 0.01 per share.
Financial restructuring impacts
: in the first
quarter 2018, the settlement-delivery of all securities and instruments resulted in a total equity increase of $2,081 million, split as such:
|
|
|
a $759 million gain in our consolidated statement of operations
|
|
|
|
an increase by $1,323 million in equity through the issuance of new shares (coming from the equitization of the unsecured debt, the rights issue and the future exercise of warrants #3, coordination warrants and
backstop warrants).
|
Page 13
Q1 2018 Conference call
An English language analysts conference call is scheduled today at 9:00 am (Paris time) 8:00 am (London time)
To follow this conference, please access the live webcast:
From your computer at:
www.cgg.com
A replay of the conference will be available via webcast on the CGG website at:
www.cgg.com
.
For analysts, please dial the following numbers 5 to 10 minutes prior to the scheduled start time:
|
|
|
|
|
France
call-in
UK
call-in
Access
code
|
|
+33(0) 1 76 77 22 74
+44(0) 330 336 9105
6971367
|
|
|
About CGG:
CGG
(
www.cgg.com
) is a fully integrated Geoscience company providing leading geological, geophysical and reservoir capabilities to its broad base of customers primarily from the global oil and gas industry. Through its three complementary
business segments of Equipment, Acquisition and Geology, Geophysics & Reservoir (GGR), CGG brings value across all aspects of natural resource exploration and exploitation. CGG employs around 5,300 people around the world, all with a
Passion for Geoscience and working together to deliver the best solutions to its customers.
CGG is listed on the Euronext Paris SA (ISIN:
0013181864) and the New York Stock Exchange (in the form of American Depositary Shares. NYSE: CGG).
Contacts
|
|
|
|
|
Group Communications
Christophe
Barnini
Tel: + 33 1 64 47 38 11
E-Mail:
:
invrelparis@cgg.com
|
|
Investor Relations
Catherine
Leveau
Tel: +33 1 64 47 34 89
E-mail:
:
invrelparis@cgg.com
|
|
|
Page 14
CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2018
Page 15
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
|
|
|
|
|
|
|
|
Amounts in millions of US$, unless indicated
|
|
March 31, 2018
|
|
|
December 31, 2017
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
538.1
|
|
|
|
315.4
|
|
Trade accounts and notes receivable, net
(2)
|
|
|
402.5
|
|
|
|
522.6
|
|
Inventories and
work-in-progress,
net
|
|
|
246.9
|
|
|
|
239.3
|
|
Income tax assets
|
|
|
65.0
|
|
|
|
61.6
|
|
Other current assets, net
|
|
|
123.4
|
|
|
|
117.0
|
|
Assets held for sale, net
|
|
|
14.6
|
|
|
|
14.6
|
|
Total current assets
|
|
|
1,390.5
|
|
|
|
1,270.5
|
|
Deferred tax assets
(2)
|
|
|
21.8
|
|
|
|
21.9
|
|
Investments and other financial assets, net
|
|
|
61.9
|
|
|
|
62.6
|
|
Investments in companies under equity method
|
|
|
194.0
|
|
|
|
192.7
|
|
Property, plant and equipment, net
|
|
|
331.1
|
|
|
|
330.3
|
|
Intangible assets, net
(2)
|
|
|
1,327.5
|
|
|
|
1,152.2
|
|
Goodwill, net
|
|
|
1,236.9
|
|
|
|
1,234.0
|
|
Total
non-current
assets
|
|
|
3,173.2
|
|
|
|
2,993.7
|
|
TOTAL ASSETS
|
|
|
4,563.7
|
|
|
|
4,264.2
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
Bank overdrafts
|
|
|
0.1
|
|
|
|
0.2
|
|
Current portion of financial debt
(1)
|
|
|
18.4
|
|
|
|
2,902.8
|
|
Trade accounts and notes payables
|
|
|
166.9
|
|
|
|
169.9
|
|
Accrued payroll costs
|
|
|
132.4
|
|
|
|
153.6
|
|
Income taxes payable
|
|
|
40.2
|
|
|
|
38.7
|
|
Advance billings to customers
|
|
|
21.2
|
|
|
|
25.9
|
|
Provisions current portion
|
|
|
56.3
|
|
|
|
58.3
|
|
Current liabilities associated with funded receivables
|
|
|
9.8
|
|
|
|
9.8
|
|
Other current liabilities
(2)
|
|
|
258.0
|
|
|
|
123.1
|
|
Total current liabilities
|
|
|
703.3
|
|
|
|
3,482.3
|
|
Deferred tax liabilities
(2)
|
|
|
55.1
|
|
|
|
62.0
|
|
Provisions
non-current
portion
|
|
|
118.6
|
|
|
|
121.6
|
|
Financial debt
(1)
|
|
|
1,178.9
|
|
|
|
52.3
|
|
Other
non-current
liabilities
|
|
|
17.7
|
|
|
|
17.9
|
|
Total
non-current
liabilities
|
|
|
1,370.3
|
|
|
|
253.8
|
|
Common stock 1,553,690,491 shares authorized and 685,408,097 shares with a 0.01 nominal
value issued and outstanding at March 31,2018 and 22,133,149 at December 31, 2017
|
|
|
8.4
|
|
|
|
20.3
|
|
Additional
paid-in
capital
(1)
|
|
|
3,184.4
|
|
|
|
1,850.0
|
|
Retained earnings
(1) (2)
|
|
|
(729.9
|
)
|
|
|
(1,354.6
|
)
|
Other Reserves
|
|
|
41.8
|
|
|
|
37.6
|
|
Treasury shares
|
|
|
(20.1
|
)
|
|
|
(20.1
|
)
|
Cumulative income and expense recognized directly in equity
|
|
|
(0.8
|
)
|
|
|
(0.8
|
)
|
Cumulative translation adjustment
|
|
|
(35.7
|
)
|
|
|
(43.3
|
)
|
Equity attributable to owners of CGG SA
|
|
|
2,448.1
|
|
|
|
489.1
|
|
Non-controlling
interests
|
|
|
42.0
|
|
|
|
39.0
|
|
Total equity
(1)
|
|
|
2,490.1
|
|
|
|
528.1
|
|
TOTAL LIABILITIES AND EQUITY
|
|
|
4,563.7
|
|
|
|
4,264.2
|
|
Closing
rates were US$1.2321 per and US$1.1993 per for March 31, 2018 and December 31, 2017, respectively.
(1)
|
See note 2 of our interim financial statements for more information regarding the impact of our financial restructuring on February 21, 2018, on the financial debt and on the equity as of December 31, 2017.
|
(2)
|
See note 1 and note 3 of our interim financial statements for more information regarding the impact of IFRS 15 revenues from contracts with customers.
|
Page 16
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
Amounts in millions of US$, except per share data or unless indicated
|
|
2018
|
|
|
2017
|
|
Operating revenues
(1)
|
|
|
245.6
|
|
|
|
249.4
|
|
Other income from ordinary activities
|
|
|
0.3
|
|
|
|
0.4
|
|
Total income from ordinary activities
|
|
|
245.9
|
|
|
|
249.8
|
|
Cost of operations
(1)
|
|
|
(238.8
|
)
|
|
|
(276.3
|
)
|
Gross profit
|
|
|
7.1
|
|
|
|
(26.5
|
)
|
Research and development expenses, net
|
|
|
(7.3
|
)
|
|
|
(8.2
|
)
|
Marketing and selling expenses
|
|
|
(13.0
|
)
|
|
|
(13.1
|
)
|
General and administrative expenses
|
|
|
(21.1
|
)
|
|
|
(20.2
|
)
|
Other revenues (expenses), net
|
|
|
(32.8
|
)
|
|
|
(28.9
|
)
|
Operating income
|
|
|
(67.1
|
)
|
|
|
(96.9
|
)
|
Expenses related to financial debt
|
|
|
(34.1
|
)
|
|
|
(47.7
|
)
|
Income provided by cash and cash equivalents
|
|
|
0.9
|
|
|
|
0.9
|
|
Cost of financial debt, net
|
|
|
(33.2
|
)
|
|
|
(46.8
|
)
|
Other financial income (loss)
(2)
|
|
|
762.8
|
|
|
|
(1.6
|
)
|
Income (loss) of consolidated companies before income taxes
|
|
|
662.5
|
|
|
|
(145.3
|
)
|
Income taxes
(1)
|
|
|
(17.2
|
)
|
|
|
(2.3
|
)
|
Net income (loss) from consolidated companies
|
|
|
645.3
|
|
|
|
(147.6
|
)
|
Share of income (loss) in companies accounted for under equity method
|
|
|
1.3
|
|
|
|
2.5
|
|
Net income (loss)
|
|
|
646.6
|
|
|
|
(145.1
|
)
|
Attributable to :
|
|
|
|
|
|
|
|
|
Owners of CGG SA
|
|
$
|
645.2
|
|
|
|
(144.1
|
)
|
Owners of CGG SA
(3)
|
|
|
528.1
|
|
|
|
(135.6
|
)
|
Non-controlling
interests
|
|
$
|
1.4
|
|
|
|
(1.0
|
)
|
|
|
|
Weighted average number of shares outstanding
(4)
|
|
|
314,214,031
|
|
|
|
46,038,287
|
|
Dilutive potential shares from stock-options
(5)
|
|
|
|
|
|
|
|
|
Dilutive potential shares from performance share plans
(5)
|
|
|
|
|
|
|
|
|
Dilutive potential shares from convertible bonds
|
|
|
|
|
|
|
|
|
Dilutive potential shares from warrants
|
|
|
19,391,416
|
|
|
|
|
|
Dilutive weighted average number of shares outstanding adjusted when dilutive
(4)
|
|
|
333,605,447
|
|
|
|
46,038,287
|
|
Net income (loss) per share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.05
|
|
|
|
(3.13
|
)
|
Basic
(3)
|
|
|
1.68
|
|
|
|
(2.94
|
)
|
Diluted
|
|
$
|
1.93
|
|
|
|
(3.13
|
)
|
Diluted
(3)
|
|
|
1.58
|
|
|
|
(2.94
|
)
|
(1)
|
Refer to note 1 and 3 of our interim financial statements for information regarding the impact of IFRS 15 revenues from contracts with customers.
|
(2)
|
Refer to note 2 of our interim financial statements for information regarding the impact of our financial restructuring.
|
(3)
|
Converted at the average exchange rate of US$1.2218 and US$1.0630 per for the periods ended March 31, 2018 and 2017, respectively.
|
(4)
|
As a result of the February 21, 2018 CGG SA capital increase via an offering of preferential subscription rights to existing shareholders, the calculation of basic and diluted earnings per share for 2017 has
been adjusted retrospectively. The number of ordinary shares outstanding has been adjusted to reflect the proportionate change in the number of shares.
|
(5)
|
As our 2017 net result was a loss, stock options and performance shares plans had an anti-dilutive effect; as a consequence, potential shares linked to those instruments were not taken into account in the diluted
weighted average number of shares or in the calculation of diluted loss per share.
|
Page 17
UNAUDITED ANALYSIS BY SEGMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2018
|
|
In millions of US$, except for assets
and capital employed in billions of US$
|
|
Contractual
Data
Acquisition
|
|
|
Non
Operated
Resources
|
|
|
GGR
|
|
|
Equipment
|
|
|
Eliminations
and other
|
|
|
Segment
figures
|
|
|
IFRS 15
adjustments
|
|
|
Transformation
Plan / Financial
restructuring
|
|
|
Consolidated
Total /
As reported
|
|
Revenues from unaffiliated customers
|
|
|
60.4
|
|
|
|
|
|
|
|
185.1
|
|
|
|
49.2
|
|
|
|
|
|
|
|
294.7
|
|
|
|
(49.1
|
)
|
|
|
|
|
|
|
245.6
|
|
Inter-segment revenues
|
|
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
16.5
|
|
|
|
(17.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
61.3
|
|
|
|
|
|
|
|
185.1
|
|
|
|
65.7
|
|
|
|
(17.4
|
)
|
|
|
294.7
|
|
|
|
(49.1
|
)
|
|
|
|
|
|
|
245.6
|
|
Depreciation and amortization (excluding multi-client surveys)
|
|
|
(9.2
|
)
|
|
|
|
|
|
|
(19.3
|
)
|
|
|
(7.3
|
)
|
|
|
(0.1
|
)
|
|
|
(35.9
|
)
|
|
|
|
|
|
|
|
|
|
|
(35.9
|
)
|
Depreciation and amortization of multi-client surveys
|
|
|
|
|
|
|
|
|
|
|
(44.6
|
)
|
|
|
|
|
|
|
|
|
|
|
(44.6
|
)
|
|
|
38.2
|
|
|
|
|
|
|
|
(6.4
|
)
|
Operating income
(2)
|
|
|
(34.4
|
)
|
|
|
(7.0
|
)
|
|
|
38.4
|
|
|
|
(9.9
|
)
|
|
|
(9.4
|
)
|
|
|
(22.3
|
)
|
|
|
(10.9
|
)
|
|
|
(33.9
|
)
|
|
|
(67.1
|
)
|
EBITDAS
|
|
|
(25.1
|
)
|
|
|
(7.0
|
)
|
|
|
96.9
|
|
|
|
(2.6
|
)
|
|
|
(9.2
|
)
|
|
|
53.0
|
|
|
|
(49.1
|
)
|
|
|
(33.9
|
)
|
|
|
(30.0
|
)
|
Share of income in companies accounted for under equity method
(1)
|
|
|
5.3
|
|
|
|
(3.5
|
)
|
|
|
(0.5
|
)
|
|
|
|
|
|
|
|
|
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
1.3
|
|
Earnings Before Interest and Tax
(2)
|
|
|
(29.1
|
)
|
|
|
(10.5
|
)
|
|
|
37.9
|
|
|
|
(9.9
|
)
|
|
|
(9.4
|
)
|
|
|
(21.0
|
)
|
|
|
(10.9
|
)
|
|
|
(33.9
|
)
|
|
|
(65.8
|
)
|
Capital expenditures (excluding multi-client surveys)
(3)
|
|
|
14.7
|
|
|
|
|
|
|
|
14.9
|
|
|
|
2.1
|
|
|
|
(3.2
|
)
|
|
|
28.5
|
|
|
|
|
|
|
|
|
|
|
|
28.5
|
|
Investments in multi-client surveys, net cash
|
|
|
|
|
|
|
|
|
|
|
62.0
|
|
|
|
|
|
|
|
|
|
|
|
62.0
|
|
|
|
|
|
|
|
|
|
|
|
62.0
|
|
Capital employed
|
|
|
0.3
|
|
|
|
0.1
|
|
|
|
2.2
|
|
|
|
0.6
|
|
|
|
|
|
|
|
3.2
|
|
|
|
(0.1
|
)
|
|
|
|
|
|
|
3.1
|
|
Total identifiable assets
|
|
|
0.5
|
|
|
|
0.1
|
|
|
|
2.6
|
|
|
|
0.6
|
|
|
|
|
|
|
|
3.8
|
|
|
|
0.1
|
|
|
|
|
|
|
|
3.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2017
|
|
In millions of US$, except for assets
and capital employed in billions of US$
|
|
Contractual
Data
Acquisition
|
|
|
Non
Operated
Resources
|
|
|
GGR
|
|
|
Equipment
|
|
|
Eliminations
and other
|
|
|
Segment
figures
|
|
|
|
|
|
Transformation
Plan
|
|
|
Consolidated
Total /
As reported
|
|
Revenues from unaffiliated customers
|
|
|
65.8
|
|
|
|
|
|
|
|
158.0
|
|
|
|
25.6
|
|
|
|
|
|
|
|
249.4
|
|
|
|
|
|
|
|
|
|
|
|
249.4
|
|
Inter-segment revenues
|
|
|
0.7
|
|
|
|
|
|
|
|
|
|
|
|
6.8
|
|
|
|
(7.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues
|
|
|
66.5
|
|
|
|
|
|
|
|
158.0
|
|
|
|
32.4
|
|
|
|
(7.5
|
)
|
|
|
249.4
|
|
|
|
|
|
|
|
|
|
|
|
249.4
|
|
Depreciation and amortization (excluding multi-client surveys)
|
|
|
(13.4
|
)
|
|
|
(12.3
|
)
|
|
|
(19.4
|
)
|
|
|
(7.6
|
)
|
|
|
(0.2
|
)
|
|
|
(52.9
|
)
|
|
|
|
|
|
|
|
|
|
|
(52.9
|
)
|
Depreciation and amortization of multi-client surveys
|
|
|
|
|
|
|
|
|
|
|
(47.7
|
)
|
|
|
|
|
|
|
|
|
|
|
(47.7
|
)
|
|
|
|
|
|
|
|
|
|
|
(47.7
|
)
|
Operating income
(2)
|
|
|
(38.6
|
)
|
|
|
(20.3
|
)
|
|
|
18.3
|
|
|
|
(16.4
|
)
|
|
|
(10.2
|
)
|
|
|
(67.2
|
)
|
|
|
|
|
|
|
(29.7
|
)
|
|
|
(96.9
|
)
|
EBITDAS
|
|
|
(25.2
|
)
|
|
|
(8.0
|
)
|
|
|
80.2
|
|
|
|
(8.7
|
)
|
|
|
(9.6
|
)
|
|
|
28.7
|
|
|
|
|
|
|
|
(29.7
|
)
|
|
|
(1.0
|
)
|
Share of income in companies accounted for under equity method
(1)
|
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
2.5
|
|
Earnings Before Interest and Tax
(2)
|
|
|
(36.1
|
)
|
|
|
(20.3
|
)
|
|
|
18.3
|
|
|
|
(16.4
|
)
|
|
|
(10.2
|
)
|
|
|
(64.7
|
)
|
|
|
|
|
|
|
(29.7
|
)
|
|
|
(94.4
|
)
|
Capital expenditures (excluding multi-client surveys)
(3)
|
|
|
4.6
|
|
|
|
|
|
|
|
11.2
|
|
|
|
3.1
|
|
|
|
0.5
|
|
|
|
19.4
|
|
|
|
|
|
|
|
|
|
|
|
19.4
|
|
Investments in multi-client surveys, net cash
|
|
|
|
|
|
|
|
|
|
|
48.3
|
|
|
|
|
|
|
|
|
|
|
|
48.3
|
|
|
|
|
|
|
|
|
|
|
|
48.3
|
|
Capital employed
|
|
|
0.4
|
|
|
|
|
|
|
|
2.3
|
|
|
|
0.6
|
|
|
|
|
|
|
|
3.3
|
|
|
|
|
|
|
|
|
|
|
|
3.3
|
|
Total identifiable assets
|
|
|
0.6
|
|
|
|
0.4
|
|
|
|
2.5
|
|
|
|
0.6
|
|
|
|
0.1
|
|
|
|
4.2
|
|
|
|
|
|
|
|
|
|
|
|
4.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Share of operating results of companies accounted for under equity method was US$3.9 million and US$3.7 million for the three months ended March 31, 2018 and 2017, respectively.
|
(2)
|
For the three months ended March 31, 2018, eliminations and other includes US$(8.1) million of general corporate expenses and US$(1.3) million of intra-group margin. For the three months ended
March 31, 2017, eliminations and other included US$(8.1) million of general corporate expenses and US$(2.1) million of intra-group margin.
|
(3)
|
Capital expenditures include capitalized development costs of US$(8.0) million and US$(6.5) million for the three months ended March 31, 2018 and 2017, respectively. Eliminations and other
corresponds to the variance of suppliers of assets for the period.
|
Page 18
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
Amounts in millions of US$
|
|
2018
|
|
|
2017
|
|
OPERATING
|
|
|
|
|
|
|
|
|
Net income (loss)
(1)
|
|
|
646.6
|
|
|
|
(145.1
|
)
|
Depreciation and amortization
|
|
|
35.9
|
|
|
|
52.9
|
|
Multi-client surveys depreciation and amortization
(1)
|
|
|
6.4
|
|
|
|
47.7
|
|
Depreciation and amortization capitalized in multi-client surveys
|
|
|
(5.5
|
)
|
|
|
(5.4
|
)
|
Variance on provisions
|
|
|
(7.2
|
)
|
|
|
(29.1
|
)
|
Stock based compensation expenses
|
|
|
0.3
|
|
|
|
0.7
|
|
Net (gain) loss on disposal of fixed and financial assets
|
|
|
(1.2
|
)
|
|
|
(0.8
|
)
|
Equity (income) loss of investees
|
|
|
(1.3
|
)
|
|
|
(2.5
|
)
|
Dividends received from investments in companies under equity method
|
|
|
|
|
|
|
|
|
Other
non-cash
items
|
|
|
(779.9
|
)
|
|
|
12.0
|
|
Net cash-flow including net cost of financial debt and income tax
|
|
|
(105.9
|
)
|
|
|
(69.6
|
)
|
Less net cost of financial debt
|
|
|
33.2
|
|
|
|
46.8
|
|
Less income tax expense
(1)
|
|
|
17.2
|
|
|
|
2.3
|
|
Net cash-flow excluding net cost of financial debt and income tax
|
|
|
(55.5
|
)
|
|
|
(20.5
|
)
|
Income tax paid
|
|
|
(2.9
|
)
|
|
|
(3.1
|
)
|
Net cash-flow before changes in working capital
|
|
|
(58.4
|
)
|
|
|
(23.6
|
)
|
Change in working capital
|
|
|
65.5
|
|
|
|
12.8
|
|
- change in trade accounts and notes receivable
(1)
|
|
|
124.3
|
|
|
|
71.3
|
|
- change in inventories and
work-in-progress
|
|
|
2.5
|
|
|
|
(7.6
|
)
|
- change in other current assets
|
|
|
(7.7
|
)
|
|
|
(17.6
|
)
|
- change in trade accounts and notes payable
|
|
|
(15.6
|
)
|
|
|
(3.0
|
)
|
- change in other current liabilities
|
|
|
(38.0
|
)
|
|
|
(27.1
|
)
|
- impact of changes in exchange rate on financial items
|
|
|
|
|
|
|
(3.2
|
)
|
Net cash-flow provided by operating activities
|
|
|
7.1
|
|
|
|
(10.8
|
)
|
INVESTING
|
|
|
|
|
|
|
|
|
Total capital expenditures (including variation of fixed assets suppliers, excluding multi-client
surveys)
|
|
|
(28.5
|
)
|
|
|
(19.4
|
)
|
Investment in multi-client surveys, net cash
|
|
|
(62.0
|
)
|
|
|
(48.3
|
)
|
Proceeds from disposals of tangible and intangible assets
|
|
|
1.9
|
|
|
|
3.2
|
|
Total net proceeds from financial assets
|
|
|
|
|
|
|
4.5
|
|
Acquisition of investments, net of cash and cash equivalents acquired
|
|
|
|
|
|
|
|
|
Variation in loans granted
|
|
|
(0.2
|
)
|
|
|
(0.7
|
)
|
Variation in subsidies for capital expenditures
|
|
|
|
|
|
|
|
|
Variation in other
non-current
financial assets
|
|
|
1.4
|
|
|
|
(0.6
|
)
|
Net cash-flow used in investing activities
|
|
|
(87.4
|
)
|
|
|
(61.3
|
)
|
FINANCING
|
|
|
|
|
|
|
|
|
Repayment of long-term debt
|
|
|
(150.3
|
)
|
|
|
(25.3
|
)
|
Total issuance of long-term debt
|
|
|
336.5
|
|
|
|
2.3
|
|
Lease repayments
|
|
|
(1.5
|
)
|
|
|
(1.6
|
)
|
Change in short-term loans
|
|
|
(0.2
|
)
|
|
|
(1.5
|
)
|
Financial expenses paid
|
|
|
(14.1
|
)
|
|
|
(44.2
|
)
|
Net proceeds from capital increase:
|
|
|
|
|
|
|
|
|
from shareholders
|
|
|
128.7
|
|
|
|
|
|
from
non-controlling
interests of integrated
companies
|
|
|
|
|
|
|
|
|
Dividends paid and share capital reimbursements:
|
|
|
|
|
|
|
|
|
to shareholders
|
|
|
|
|
|
|
|
|
to
non-controlling
interests of integrated
companies
|
|
|
|
|
|
|
|
|
Acquisition/disposal from treasury shares
|
|
|
|
|
|
|
|
|
Net cash-flow provided by (used in) financing activities
|
|
|
299.1
|
|
|
|
(70.3
|
)
|
Effects of exchange rates on cash
|
|
|
3.9
|
|
|
|
2.2
|
|
Impact of changes in consolidation scope
|
|
|
|
|
|
|
(7.5
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
|
222.7
|
|
|
|
(147.7
|
)
|
Cash and cash equivalents at beginning of year
|
|
|
315.4
|
|
|
|
538.8
|
|
Cash and cash equivalents at end of period
|
|
|
538.1
|
|
|
|
391.1
|
|
(1)
|
See note 1 and note 3 of our interim financial statements for more information regarding the impact of IFRS 15 revenues from contracts with customers.
|
Page 19
THIS FORM
6-K
REPORT IS HEREBY INCORPORATED BY REFERENCE INTO CGGS
REGISTRATION STATEMENT ON FORM
S-8
(REGISTRATION STATEMENT NO.
333-150384,
NO.
333-158684,
NO.
333-166250,
NO.
333-173638,
NO.
333-188120
AND NO.
333-197785)
AND SHALL BE A PART
THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, CGG has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
|
Date May 17, 2018
|
|
By /s/ Stéphane-Paul FRYDMAN
|
|
|
S.P. FRYDMAN
|
|
|
Chief Financial Officer
|
Page 20