CGG Announces its Q1 2021 Results
Positive Net Cash Flow and Successful Refinancing
Seasonal Soft Quarter with Solid Equipment Performance
2021 Financial Objectives Confirmed
PARIS, France - May 12, 2021 - CGG (ISIN: FR0013181864), a world leader in Geoscience, announced today its first quarter 2021 non-audited results.
Commenting on these results, Sophie Zurquiyah, CGG CEO, said:
"With our successful refinancing we delivered the last milestone in our CGG 2021 strategy while normalizing our capital structure. We are now actively developing our new ambitions, focusing on growing our core highly differentiated businesses as the market gradually strengthens, and accelerating our growth beyond the core into sectors, including digitalization, observation & monitoring, and energy transition.
As anticipated, we continued to execute projects from our Geoscience backlog and delivered land equipment for the Saudi mega crews this quarter. Multi‐Client saw a seasonal low first quarter and some shift in timing of sales. Overall, we generated $28m of positive net cash flow this quarter. With oil price firming up above the $60/bbl level, we started to see in March a resumption in commercial activity and contract awards, which gives us confidence in our 2021 financial objectives. "
Q1 2021: A seasonal soft quarter with solid Equipment performance
- IFRS figures: revenue at $209m, EBITDAs at $32m, OPINC at $(14)m
- Segment revenue at $213m, down (21)% year-on-year Geoscience: Reached a low point as it continued to deliver its backlog Multi-client: Soft quarter with timing of some sales moved to Q2/H2
Equipment: Solid operational & business performance driven by land equipment deliveries - Segment EBITDAs at $36m and Adjusted* Segment EBITDAs at $39m, a 19% margin due to revenue mix
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Segment Operating Income at $(11)m and Adjusted* Segment
Operating Income at $(12)m - Group Net loss at $(81)m
*Adjusted indicators represent supplementary information adjusted for non-recurring charges triggered by economic downturn.
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Positive quarterly Net Cash Flow and Liquidity of $407m
- Net Cash Flow at $28m
- Liquidity of $407m and Net debt before IFRS 16 at $845m as of March 31, 2021
Successful $1.2Bn Senior Secured Notes Debt Refinancing
- Normalization of capital structure through $1.2Bn equivalent refinancing in EUR and USD with a new $100m revolving credit facility (RCF)
- Reduction of cost of debt with a blended interest rate of 8.17% and elimination of $45m per year in PIK interest
- Extension of maturities to 2027 (6 years)
- Non-Callperiod of 3 years with possibility to repay up to 10% ($120m) per year during this period
- ESG-linkedRCF, aligning capital structure terms with CGG's sustainability objectives
- Single maintenance covenant for RCF: leverage below 3.5x (2.7x end of 2020), tested when RCF is drawn by more than 40%
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Key Figures - First Quarter 2021
Key Figures IFRS - Quarter | 2020 | 2021 | Variances | ||||||||
In million $ | Q1 | Q1 | % | ||||||||
Operating revenues | 253 | 209 | (17)% | ||||||||
Operating Income | (40) | (14) | 65% | ||||||||
Equity from Investment | - | - | - | ||||||||
Net cost of financial debt | (33) | (34) | (4)% | ||||||||
Other financial income (loss) | 6 | (38) | - | ||||||||
Income taxes | (5) | (5) | (12)% | ||||||||
Net Income / Loss from continuing | (72) | (92) | (29)% | ||||||||
operations | |||||||||||
Net Income / Loss from discontinued operations | (27) | 11 | 143% | ||||||||
Group net income / (loss) | (98) | (81) | 18% | ||||||||
Operating Cash Flow | 145 | 105 | (28)% | ||||||||
Net Cash Flow | 17 | 28 | 65% | ||||||||
Net debt | 705 | 987 | 40% | ||||||||
Net debt before lease liabilities | 540 | 845 | 56% | ||||||||
Capital employed | 2,202 | 2,072 | (6)% |
Key Segment Figures - First Quarter 2021
Key Segment Figures - Quarter | 2020 | 2021 | Variances | ||||||||
In million $ | Q1 | Q1 | % | ||||||||
Segment revenue | 271 | 213 | (21)% | ||||||||
Segment EBITDAs | 123 | 36 | (71)% | ||||||||
Group EBITDAs margin | 45% | 17% | (28) bps | ||||||||
Segment operating income | (31) | (11) | 65% | ||||||||
Opinc margin | (11)% | (5)% | 6 bps | ||||||||
IFRS 15 adjustment | (9) | (3) | 63% | ||||||||
IFRS operating income | (40) | (14) | 65% | ||||||||
Operating Cash Flow | 145 | 105 | (28)% | ||||||||
Net Segment Cash Flow | 17 | 28 | 65% | ||||||||
Supplementary information | |||||||||||
Adjusted segment EBITDAs before NRC | 125 | 39 | (68)% | ||||||||
EBITDAs margin | 46% | 19% | (27) bps | ||||||||
Adjusted segment operating income before | 40 | (12) | (130)% | ||||||||
NRC | |||||||||||
Opinc margin | 15% | (6)% | (28) bps |
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Key figures bridge: Segment to IFRS - First Quarter 2021
P&L items | Segment | IFRS 15 | IFRS figures | ||||||||
In million $ | figures | adjustment | |||||||||
Total Revenue | 213 | (4) | 209 | ||||||||
OPINC | (11) | (3) | (14) | ||||||||
Cash Flow Statement items | Segment | IFRS 15 | IFRS figures | ||||||||
In million $ | figures | adjustment | |||||||||
EBITDAs | 36 | (4) | 32 | ||||||||
Change in Working Capital & | 73 | 4 | 77 | ||||||||
Provisions | |||||||||||
Cash Provided by Operations | 105 | (0) | 105 | ||||||||
Multi-Client Data Library NBV | Segment | IFRS 15 | IFRS figures | ||||||||
In million $ | figures | adjustment | |||||||||
Opening Balance Sheet , Dec 20 | 285 | 207 | 492 | ||||||||
Closing Balance Sheet , Mar 21 | 291 | 204 | 495 |
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First Quarter 2021 Segment Financial Results
Geology, Geophysics & Reservoir (GGR)
Geology, Geophysics & Reservoir (GGR)
In million $
Segment revenue
Geoscience (SIR)
Multi-Client
Prefunding
After-Sales
Segment EBITDAs
EBITDAs Margin
Segment operating income
OPINC Margin
Equity from investments
Capital employed (in billion $) Supplementary information Adjusted segment EBITDAs before NRC
EBITDAs Margin
Adjusted segment OPINC before NRC
OPINC Margin
Other Key Metrics
Multi-Client cash capex ($m) Multi-Client cash prefunding rate (%)
2020 | 2021 | Variances | ||||||
Q1 | Q1 | % | ||||||
197 | 100 | (49)% | ||||||
93 | 66 | (29)% | ||||||
104 | 34 | (67)% | ||||||
57 | 15 | (74)% | ||||||
47 | 19 | (59)% | ||||||
123 | 28 | (77)% | ||||||
62% | 28% | (34) bps | ||||||
(22) | (8) | 63% | ||||||
(11)% | (8)% | 3 bps | ||||||
- | - | - | ||||||
1.7 | 1.6 | (6)% | ||||||
124 | 31 | (75)% | ||||||
63% | 31% | (32) bps | ||||||
48 | (11) | (123)% | ||||||
24% | (11)% | (35) bps | ||||||
(67) | (30) | (55)% | ||||||
85% | 50% | (35) bps |
GGR segment revenue was $100 million, down (49)% year-on-year.
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Geoscience revenue was $66 million, down (29)% year-on-year.
Geoscience continued to deliver its backlog and reached an inflection point this quarter. After a year of drastic spending cuts, clients' priorities this quarter were on development projects. Commercial activity and contract awards resumed in March, especially in North and South America, and the overall level of commercial bids was up 10% during the month of March.
We continue to actively develop and promote our high end technology for digitalization, energy transition and monitoring markets where we have recently been awarded a few projects. - Multi-Clientrevenue was $34 million, down (67)% year-on-year.
Multi-client cash capex was $(30) million this quarter, (55)% lower than in Q1 2020, as we had one marine streamer multi-client program offshore Brazil. Prefunding revenue of our multi-client projects was $15 million and prefunding rate was 50%.
Multi-clientafter-sales were at $19 million this quarter as we saw a seasonally slow first quarter with some sales shifting into Q2/H2.
The segment library Net Book Value was $291 million ($495 million after IFRS 15 adjustments) at the end of March 2021, split 85% offshore and 15% onshore.
GGR segment EBITDAs was $28 million and GGR Adjusted* segment EBITDAs was $31 million, a 31% margin.
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CGG SA published this content on 12 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2021 06:07:02 UTC.