CGG Third Quarter 2012 Results
Strong Improvement in CGGVeritas Third Quarter 2012 Results
Acquisition of Fugro’s Geoscience Division on Track
PARIS, France – November 5th 2012 – CGGVeritas announced today its non-audited third quarter 2012 consolidated1 results. All comparisons are made on a year-on-year basis unless stated otherwise.
Third quarter results
Revenue totaled $855 million, up 7%
Operating income increased by 17% to $114 million, a 13% margin
Services operating income was at $62 million, a 10% margin
Sercel operating income was at $93 million, a 33% margin
Acquisition of Fugro’s Geoscience Division on track
The closing of the acquisition of Fugro’s Geoscience Division is still expected by the end of the year or by early 2013
This acquisition remains currently subject to the approval of anti-trust authorities in the United Kingdom, in Norway, in Turkey and in Australia and to the work’s council consultation
The Rights Issue of 414 million euros launched last September 26th was successful, having been 195% oversubscribed
Signature of a collaborative relationship agreement with Baker Hughes
CGGVeritas announces today a collaborative relationship agreement with Baker Hughes on the shale plays in order to develop a complete range of services using reservoir models with calibrated seismic data
This collaboration could help oil and gas companies to accurately pinpoint reservoir “sweet spots” and optimize well placement and completion design earlier in the asset lifecycle for more efficient well construction and more productive wells
CGGVeritas CEO, Jean-Georges Malcor, commented:
“As expected, quarter after quarter, CGGVeritas continues to strengthen its results, reflecting the improvement in our operational performance as well as the increase in marine prices.
The acquisition of Fugro’s Geoscience Division is on track. Our capital increase with preferential subscription rights was favorably received by our shareholders who recognize that this operation will transform CGGVeritas into a fully integrated company in Geology, Geophysics and Reservoir.
We are also very pleased by the collaborative relationship agreement with Baker Hughes in the shale plays. This agreement is in line with our strategy of positioning our company on the entire value chain of Geoscience and to fully benefit from this favorable phase of the cycle.
For the end of the year, our multi-client activity should benefit from the recent announcement of lease sales in the Gulf of Mexico and Brazil and from the 27th round awards in the North Sea, after two exceptionally weak quarters. In this context, and with a fourth quarter expected to be strong across our activities, we confirm our 2012 objectives.
Looking forward, the current buoyant commercial climate bodes well for this favorable cycle continuing for the seismic industry in 2013.”
Third Quarter 2012 Key Figures
|In million $||Third Quarter 2012||Third Quarter 2011*|
|Cash Flow from Operations||171||113|
|Free Cash Flow||-39||-66|
* Restated figures
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:||Group Communications:|
1 - 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 first, second and third quarter 2011 figures shown in this press release have been restated as if the change in the Group presentation currency had been effective since January 1, 2004 (IFRS transition). In the context of our new presentation of cash indicators, first, second and third quarter 2011 EBITDAs and multi-client Capex figures have been restated.