French marine seismic company CGG reported Group net income of $41 million for the first quarter of 2019, compared to the previous year’s 3Q loss of $1.5 million.
Group revenue was $323.4 million down $387.7 million in the third quarter of 2018. Operating income was higher in this year’s 3Q coming in at 98 million, an increase from $68.9 million in 3Q 2018.
Segment revenue was $382 million, up 36% year-on-year. The respective contributions from the Group’s businesses were 25% from Geoscience, 50% from Multi-Client (75% from the Geology, Geophysics & Reservoirsegment) and 25% from Equipment.
Commenting on the results, Sophie Zurquiyah, CGG CEO, said: “Our performance was very strong this quarter, across all three businesses. In particular, Multi-client delivered high prefunding and after-sales, which included favorable one-off transfer fees.
“In the current market environment, with E&P companies continuing to prioritize spending around quicker returns, and generating free cash flow, we remain focused on bringing new technology to our clients for their near field exploration, field development, and reservoir optimization needs.
“We further advanced our subsurface imaging and data science technology, delivering superior reservoir understanding to our clients, and providing support for their digitalization agendas. Also during the quarter, we launched GPR, Sercel’s new ocean bottom node. Cash flow generation remains our priority, and, with our very high net cash flow of $167m this quarter, we confirm that CGG will generate positive net cash flow in 2019.”
Providing the outlook for the full year 2019, CGG said it saw continuing gradual market recovery with rxpected segment revenue growth by more than 10% year on year. CGG also said its previously announced acquisition business exit and strategic partnership with Shearwater was progressing as planned.
Offshore Energy Today Staff
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