French geophysical services player CGG, which recently finalized the implementation of its financial restructuring plan, recorded an increase in its revenues and a smaller loss sequentially and year-on-year.
CGG’s emergence from Chapter 11 in the US was completed on February 21, 2018.
The company on Friday posted revenues of $401 million for the fourth quarter 2017, up 22% year-on-year and up 25% sequentially. Namely, CGG’s revenues in 4Q 2016 were $328.3 million and $320.1 million in 3Q 2017.
Group net loss for the fourth quarter of 2017 was $75 million after non-recurring charges (NRC). This compares to a $124.4 million loss in the third quarter 2017 and a $279.8 million loss in 4Q 2016.
After minority interests, net income attributable to the owners of CGG was a loss of $77 million / €63 million.
Commenting on these results, Jean-Georges Malcor, CGG CEO, said: “In a still challenging market overall, the Group achieved a robust 22% growth in fourth quarter revenue year-on-year, thanks, in particular, to a high level of land equipment sales and the good positioning of our multi-client data library in the strategic basins offshore Brazil and the North Sea. This level of revenue led to positive quarterly operating income for the first time in eight quarters.”
It is worth reminding that Malcor last December announced his decision to leave the company once the restructuring is completed and his successor is appointed.
Commenting on the company’s restructuring, Malcor said: “Following the approval of the safeguard plan in France and the exit from Chapter 11 in the United States at the end of February, our financial restructuring is now finalized. At the closing of the financial restructuring and on a pro forma basis, CGG has a restored balance sheet with a net debt brought back to $631m, corresponding to a leverage ratio at 1.7 times.”
CGG’s board considers that the group no longer faces material uncertainties that may cast doubt upon its ability to continue as a going concern and that the group’s liquidity and cash flow are sufficient to meet its expected cash requirements until at least December 31, 2018.
Offshore Energy Today Staff