CGGVeritas Announces 2012 First Quarter Results
-
Revenue at $787 million up 8%
-
Operating Income at $54 million
-
Strong Increase in Group Backlog
-
Positive Outlook for 2012 confirmed
PARIS, France – May 10th, 2012 – CGGVeritas announced today its non-audited first quarter 2012 consolidated results. All comparisons are made on a year-on-year basis unless stated otherwise.
Effective January 1, 2012, CGGVeritas changed the presentation currency of its consolidated financial statements from the euro to the U.S. dollar to better reflect the profile of an industry with revenues, costs and cash-flows primarily generated in U.S. dollars.
The 2011 first quarter figures shown in this press release were restated as if the change in the Group presentation currency was effective since the January 1, 2004 (IFRS transition). The 4th quarter 2011 figures are presented for information purposes only. They correspond to the conversion into USD of the 2011 accounts provided in Euros as released last February. In the context of our new presentation of cash indicators, 2011 first and fourth quarter EBITDAs and multi-client Capex figures were restated.
First Quarter 2012 Key Figures
| In million $ | First Quarter 2012 | First Quarter 2011* |
| Revenue | 787 | 729 |
|
EBITDAs |
212 | 156 |
|
Operating Income |
54 | 23 |
| Net Income | -3 | -37 |
| Cash Flow from Operations | 193 | 198 |
| Free Cash Flow | -7 | 65 |
| Backlog | 1,565 | 1,218 |
* Restated figures
CGGVeritas CEO, Jean-Georges Malcor commented:
"In the first quarter 2012, Group revenue increased year-on-year as Sercel delivered record sales and Services remained stable. Group results improved despite operating marine contracts this quarter which were awarded during the second half of 2011 at historic low prices. Our performance plan is progressing well and bearing fruit as the marine modernization plan reached completion in early April with the Oceanic Champion returning to operations and our vessel production rate was high at 92% this quarter.
Our backlog is significantly increasing, confirming the recovery in demand for the high end seismic equipment and services market, with marine prices strengthening year on year and good visibility for our land crews across the year.
With our strengthening operational performance and reinforced technical differentiation, CGGVeritas should continue its journey of growth in 2012 while benefiting from both the excellent financial performance of Sercel and an expected significant improvement of Services, especially in the second half of the year."
First Quarter 2012 Results
- Group revenue was $787 million, up 8% year-on-year mainly driven by record high Sercel sales.
- Group operating income was $54 million. Group margin was 7%:
- Sercel margin was high at 33% driven by demand for land and marine high resolution surveys.
- Services margin was negative at 1% mainly due to the continued very low prices in the marine contracts executed this quarter.
- Net income was a loss of $3 million.
- Operational cash flow was $193 million, stable year-on-year.
- After financial costs paid and capital expenditure, including $65 million for the performance upgrade of the Oceanic Champion, free cash flow was negative at $7 million.
- The acquisition of Global Research Company (GRC) on the 18th of January strengthened Sercel’s diversification into high resolution downhole gauges and sensors.
- Backlog strengthened to $1.565 billion at the end of March 2012, up 28% year-on-year
First Quarter 2012 Key Figures
| Fourth Quarter | First Quarter | ||
| In million $ | 2011* | 2012 | 2011* |
| Group Revenue | 906 | 787 | 729 |
|
Sercel |
326 | 348 |
275 |
| Services | 632 | 531 | 533 |
|
Group Operating Income |
71 | 54 | 23 |
| Margin | 8% | 7% | 3% |
| Sercel | 98 | 116 | 95 |
| Margin | 30% | 33% | 34% |
| Services | 11 | -8 | -26 |
| Margin | 2% | -1% | -5% |
| Net Income | 21 | -3 | -37 |
| Margin | 2% | 0% | -5% |
| Net Debt | 1,411 | 1,512 |
1,444 |
| Net Debt to Equity Ratio | 37% | 39% | 38% |
* Restated figures
About CGGVeritas
CGGVeritas (www.cggveritas.com) is a leading international pure-play geophysical company delivering a wide range of technologies, services and equipment through Sercel, to its broad base of customers mainly throughout the global oil and gas industry.
CGGVeritas is listed on the Euronext Paris SA (ISIN: 0000120164) and the New York Stock Exchange (in the form of American Depositary Shares. NYSE: CGV).
|
|
||
| Investor Relations Contact | ||
|
Paris: |
||
|
|
||
The information included herein contains certain forward-looking statements within the meaning of Section 27A of the securities act of 1933 and section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties as disclosed by the Company from time to time in its filings with the Securities and Exchange Commission. Actual results may vary materially.
