CGG Announces its 2017 Fourth
Quarter & Full-Year Results
PARIS, France - March 9th
2018 - CGG (ISIN: FR0013181864 - NYSE: CGG),
world leader in Geoscience, announced today its 2017 fourth
quarter and full-year unaudited results.
2017
Q4: Rebound in revenue and positive operating income
- Revenue at $401m, up 22% year-on-year
- GGR: strong Multi-Client sales in Brazil and North
Sea
- Equipment: very strong volume recovery
- Contractual Data Acquisition: low Marine revenue as 75% of
fleet dedicated to multi-client surveys
- EBITDAs1 at $134m, up 34% year-on-year, 33%
margin
- Group Operating Income1 positive at $18m versus
$(70)m in Q4 2016
- Free Cash Flow1 at $13m
FY
2017: Improved revenue and EBITDAs
- Revenue at $1,320m, up 10% year-on-year
- GGR: strong Multi-Client sales, resilient SIR performance
- Equipment: higher external volumes
- Contractual Data Acquisition: driven by two large contracts
with high-end multi-source vessel setup
- EBITDAs1 at $372m, up 14% year-on-year, 28%
margin
- Group Operating Income1 at $(77)m versus $(213)m
in 2016
- Multi-client cash capex at $251m, 107%
prefunded
- Industrial and R&D capex at $84m and
Free Cash Flow1 at $(96)m
- Net debt at $2,640m at end of December with
liquidity at $315m
- Net income at $(514)m including $(186)m
non-recurring charges
Financial restructuring plan fully
implemented
- Sanctioning of the safeguard plan by the French
commercial court on December 1, 2017 and emergence from Chapter
11 in the US on February 21, 2018
- Full success of the January 2018 €112m Rights
issue
- All new instruments delivered on February 21, 2018:
- Shares: 578.6 million shares outstanding prior warrants
exercise
- Bonds: $664m 2023 1st lien High Yield Bonds; $355m &
€80m 2024 2nd lien HYB
- Restored capital structure with pro forma net debt of
$631m(2), liquidity of $575m and leverage ratio at 1.7x
2018 outlook
- Revenue3 expected up at c. $1.5bn +/- 5% in a
stabilized and still uncertain market
- EBITDAs1-3 margin within 35% to 40%
range
- Multi-Client cash capex at $275/325m with cash
prefunding rate above 70%
- Industrial and R&D capex at
$100/135m
- Cash cost of debt at c. $85m
- Industrial Transformation Plan cash cost at c. $25m
1Figures before Non-Recurring Charges related to the Transformation
Plan and data library impairment2 Including c. $50m of financial
restructuring costs to be paid in Q1 20183 Subject to final IFRS 15
application |
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.
After a decline in earnings over the last three
years, we recorded a 10% increase in revenue and a 14% growth in
EBITDA for the full year 2017, demonstrating the effectiveness and
success of our industrial Transformation Plan, particularly the
sharp reduction in our cost base.
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.
Throughout this difficult period, CGG benefited
from the continuous support of its clients and the full commitment
of its employees and is now ready for a new momentum. With a
restored balance sheet, strong technological positions and proven
operational excellence, the Group has begun 2018 with renewed
confidence and is ready to take full advantage of a rebound in the
market."
Post-closing events
- January 15th : Reduction of the share capital from
€17,706,519 to €221,331 by reducing the nominal value of the
Company's shares from €0.80 to €0.01
- January 22nd: Launch of the capital increase with
preferential subscription rights for an amount of €112 million, by
way of an issuance of shares of the Company each with one warrant
attached (Warrants #2)
- January 25th: Trading halt on the Convertible Bonds
2019, the Convertible Bonds 2020, and the Senior Notes on the Euro
MTF market, from the opening of the market on February 1, 2018
- February 9th: Rights issue with preferential
subscription right (PSR) of €112 million (including share premium)
was fully subscribed
- February 21st: Completion of the financial restructuring
with settlement-delivery of all securities and instruments.
The
financial restructuring with settlement-delivery of all securities
and instruments will result in a c. $0.75 billion gain in our
consolidated statement of operations. In addition, the equity will
increase by c. $1.3 billion through the issuance of new shares
(coming from the equitization of the unsecured debt, the rights
issue and the future exercise of warrants #3, coordination warrants
and backstop warrants), to reach a total equity increase of c.
$2.05
billion. Emergence
from Chapter 11 for the fourteen guarantor subsidiaries the very
same day
Fourth Quarter 2017 Key Figures
Before Non-Recurring Charges (NRC)
In million $ |
Fourth Quarter2016 |
Third Quarter2017 |
Fourth Quarter2017 |
Group Revenue |
328.3 |
320.1 |
400.7 |
Group EBITDAs |
99.8 |
89.6 |
134.1 |
Group EBITDAs margin |
30.4% |
28.0% |
33.5% |
Group EBITDAs excluding NOR |
104.9 |
91.1 |
136.9 |
Operating Income |
(70.1) |
(24.0) |
17.5 |
Opinc margin |
(21.4)% |
(7.5)% |
4.4% |
Operating Income excluding NOR |
(52.4) |
(19.6) |
21.6 |
Equity from investments |
(11.1) |
(11.2) |
(8.9) |
Net Financial Costs |
(55.4) |
(64.4) |
(45.8) |
Income Taxes |
29.6 |
11.6 |
(12.2) |
Non-recurring charges (NRC) |
(172.8) |
(36.4) |
(25.5) |
Net Income |
(279.8) |
(124.4) |
(74.9) |
Cash Flow from Operations before NRC |
129.1 |
69.2 |
143.4 |
Cash Flow from Operations after NRC |
95.1 |
93.8 |
117.0 |
Free Cash Flow before NRC |
2.0 |
(10.9) |
13.4 |
Free Cash Flow after NRC |
(32.0) |
13.7 |
(13.0) |
Net Debt |
2,311.6 |
2,570.7 |
2,639.9 |
Capital Employed |
3,468.4 |
3,190.3 |
3,168.0 |
Full-Year 2017 Key Figures
Before Non-Recurring Charges (NRC)
In million $ |
FY 2016 |
FY 2017 |
Group Revenue |
1,195.5 |
1,320.0 |
Group EBITDAs |
327.9 |
372.4 |
Group EBITDAs margin |
27.4% |
28.2% |
Group EBITDAs excluding NOR |
350.1 |
386.7 |
Operating Income |
(212.7) |
(77.2) |
Opinc margin |
(17.8)% |
(5.8)% |
Operating Income excluding NOR |
(128.4) |
(43.1) |
Equity from investments |
(8.2) |
(20.1) |
Net Financial Costs |
(185.6) |
(206.8) |
Income Taxes |
13.7 |
(23.7) |
Non-recurring charges (NRC) |
(183.8) |
(186.3) |
Net Income |
(576.6) |
(514.1) |
Cash Flow from Operations before NRC |
522.4 |
299.2 |
Cash Flow from Operations after NRC |
355.1 |
197.9 |
Free Cash Flow before NRC |
(6.7) |
(95.7) |
Free Cash Flow after NRC |
(174.0) |
(197.0) |
Net Debt |
2,311.6 |
2,639.9 |
Capital Employed |
3,468.4 |
3,168.0 |
Going concern
The consolidated financial statements as of
December 31, 2017 were approved by the Board of Directors on March
8, 2018 on a going concern basis.
The main steps of the implementation of the
restructuring plan were implemented successfully and the legal
proceedings that have been initiated relating to the French
safeguard procedure and to the US Chapter 11 procedure are
terminated. On February 21, 2018, CGG finalized the implementation
of its financial restructuring plan, which meets the Company's
objectives of strengthening its balance sheet and providing
financial flexibility to continue investing in the future. This
plan comprised (i) the equitization of all the unsecured senior
debt, (ii) the extension of the maturities of the secured senior
debt and (iii) the provision of additional liquidity (c. $305m
after partial repayment of the secured senior debt) to meet various
business scenarios.
The Board of Directors considered that (i) the
Group no longer faces material uncertainties that may cast doubt
upon its ability to continue as a going concern and that (ii) the
Group's liquidity and cash flow are sufficient to meet our expected
cash requirements until at least December 31, 2018.
Having considered the above, the Board of
Directors concluded that preparing the December 31, 2017
consolidated financial statements on a going concern basis is an
appropriate assumption.
First time application of IFRS 15
Revenue recognition for multi-clients original
participants contracts (formerly 'pre commitments') has been
subject to an in-depth analysis of the industry practice and of the
multi-client business model with CGG's auditors. In line with what
was disclosed recently by other seismic players, a preliminary
analysis, based purely on IFRS 15 form and applied to present
contracts letter, is showing that there is a high risk that all the
revenues related to multi-clients original participants contracts
would have, under the new norm, to be recognized only at delivery
of the final processed data, which may be more than one year after
acquisition of the data. Subject to certain contractual
documentation improvement and clarifications, CGG supports the
conclusion that original participants contracts are services
contracts for which revenue should be recognized over time based on
data acquisition and processing progress of the survey, continuing
the accounting for pre commitments under current industry practice
prior to the adoption of IFRS 15 in 2018. Such conclusion has been
shared and discussed with other seismic players. However, this
conclusion has not yet been endorsed by the auditors and the
regulators of the financial markets where CGG shares are publicly
traded.
As a reminder, the revenues related to
multi-clients original participants amounted to $269m in 2017.
Fourth quarter 2017 financial results by
operating segment and before non-recurring charges
Geology, Geophysics & Reservoir
(GGR)
GGR In million $ |
Fourth Quarter2016 |
Third Quarter2017 |
Fourth Quarter2017 |
VariationYear-on-year |
VariationQuarter-to-quarter |
Total Revenue |
230.2 |
185.9 |
255.0 |
11% |
37% |
Multi-Client |
133.9 |
105.5 |
158.6 |
18% |
50% |
Prefunding |
58.3 |
70.1 |
72.1 |
24% |
3% |
After-Sales |
75.6 |
35.4 |
86.5 |
14% |
144% |
Subsurface Imaging & Reservoir (SIR) |
96.3 |
80.4 |
96.4 |
0% |
20% |
EBITDAs |
155.8 |
102.0 |
164.5 |
6% |
61% |
Margin |
67.7% |
54.9% |
64.5% |
(320) bps |
960 bps |
Operating Income |
26.0 |
11.8 |
63.3 |
143% |
436% |
Margin |
11.3% |
6.3% |
24.8% |
na |
na |
Equity from Investments |
(2.2) |
(0.2) |
(0.2) |
na |
na |
Capital Employed (in billion $) |
2.3 |
2.2 |
2.2 |
na |
na |
GGR Total Revenue was $255 million, up
11% year-on-year and 37% sequentially.
- Multi-Client revenue was $159 million, up 18%
year-on-year and 50% sequentially. 75% of the fleet was allocated
to multi-client programs compared to 38% in Q4 2016 and 33% in Q3
2017. Multi-client sales were the highest in Brazil and North
Sea.
- Prefunding revenue was $72 million, up 24% year-on-year and 3%
sequentially. Multi-client cash capex was at $89 million, up 67%
year-on-year and 66% sequentially. The cash prefunding rate was at
82% versus 109% in Q4 2016.
- After-sales were $87 million, up 14% year-on-year and 144%
sequentially.
- Subsurface Imaging & Reservoir revenue was $96
million, stable year-on-year and up 20% sequentially.
GGR EBITDAs was $165 million, a 64.5%
margin.
GGR Operating Income was $63 million, a
24.8% margin. The multi-client depreciation rate totaled 53%,
leading to a library Net Book Value of $831 million at the end of
December 2017, split 90% offshore and 10% onshore.
GGR Capital Employed was stable at $2.2
billion at the end of December 2017.
Equipment
Equipment In
million $ |
Fourth Quarter2016 |
Third Quarter2017 |
Fourth Quarter2017 |
VariationYear-on-year |
VariationQuarter-to-quarter |
Total Revenue |
84.0 |
39.8 |
116.0 |
38% |
191% |
External Revenue |
47.8 |
36.2 |
105.9 |
122% |
193% |
Internal Revenue |
36.2 |
3.6 |
10.1 |
(72)% |
181% |
EBITDAs |
5.3 |
(8.3) |
16.4 |
209% |
298% |
Margin |
6.3% |
(20.9)% |
14.1% |
780 bps |
NA |
Operating Income |
(2.9) |
(15.8) |
8.9 |
407% |
156% |
Margin |
(3.5)% |
(39.7)% |
7.7% |
na |
na |
Capital Employed (in billion $) |
0.6 |
0.6 |
0.6 |
na |
na |
Equipment Total Revenue was $116 million,
up 38% year-on-year and 191% sequentially. This sharp rise can be
explained by staggered deliveries from Q3 to Q4 and the usual
seasonal pattern at year-end driving a strong activity pick-up this
last quarter.
External sales were $106 million, up 122%
year-on-year and 193% sequentially. Internal sales remained limited
at $10m in 2017 versus $36m in Q4 2016.
Land equipment sales represented 64% of total
sales, compared to 44% in the fourth quarter of 2016, driven
notably by 508XT deliveries.
Marine equipment sales represented 36% of total
sales, compared to 56% in the fourth quarter of 2016, driven
notably by various sentinel sections deliveries.
Equipment EBITDAs was $16 million, a
margin of 14.1%.
Equipment Operating Income was $9
million, a margin of 7.7%.
Equipment Capital Employed was stable at
$0.6 billion at the end of December 2017.
Contractual Data Acquisition
Contractual Data Acquisition In
million $ |
Fourth Quarter2016 |
Third Quarter2017 |
Fourth Quarter2017 |
VariationYear-on-year |
VariationQuarter-to-quarter |
Total Revenue |
51.5 |
98.7 |
41.5 |
(19)% |
(58)% |
External Revenue |
50.3 |
98.0 |
39.8 |
(21)% |
(59)% |
Internal Revenue |
1.2 |
0.7 |
1.7 |
42% |
143% |
Total Marine Acquisition |
35.0 |
71.1 |
9.9 |
(72)% |
(86)% |
Total Land and Multi-Physics Acquisition |
16.5 |
27.6 |
31.6 |
92% |
14% |
EBITDAs |
(33.2) |
5.1 |
(26.3) |
21% |
(616)% |
Margin |
(64.5)% |
5.2% |
(63.4)% |
110 bps |
NA |
Operating Income |
(51.4) |
(7.1) |
(33.0) |
36% |
(365)% |
Margin |
(99.8)% |
(7.2)% |
(79.5)% |
na |
na |
Equity from Investments |
(8.9) |
(8.2) |
(5.8) |
35% |
29% |
Capital Employed (in billion $) |
0.4 |
0.4 |
0.3 |
na |
na |
Contractual Data Acquisition Total
Revenue was $42 million, down 19% year-on-year and 58%
sequentially.
- Contractual Marine Data Acquisition revenue was $10
million, down 72% year-on-year and 86% sequentially
Our vessel availability rate was 82% due to
weather standby. This compares to 90% in the fourth quarter of 2016
and 99% in the third quarter of 2017. Our vessel production rate
was 97%. This compares to 97% in the fourth quarter of 2016 and 96%
in the third quarter of 2017.
The decrease in revenue can mainly be explained
by the higher dedication to multi-client surveys, as 75% of the
fleet was dedicated to multi-client programs versus 38% in the
fourth quarter of 2016 and 33% in the third quarter of 2017.
- Land and Multi-Physics Data Acquisition revenue was
$32million, up 92% year-on-year and 14% sequentially. Land and
Airborne continued to increase slightly this quarter, in line with
the trend seen in Q3.
Contractual Data Acquisition EBITDAs was
$(26) million.
Contractual Data Acquisition Operating
Income was $(33) million. Contractual Data Acquisition
activities continued to suffer from a competitive market and were
further impacted by delays and weather conditions this quarter.
The equity from investments can mainly be
explained by the negative contribution from the PTSC JV in Vietnam
this quarter.
Contractual Data Acquisition Capital
Employed was down at $0.3 billion at the end of December
2017.
Non-Operated Resources
Non-Operated Resources In million $ |
Fourth Quarter2016 |
Third Quarter2017 |
Fourth Quarter2017 |
VariationYear-on-year |
VariationQuarter-to-quarter |
EBITDAs |
(5.1) |
(1.5) |
(2.8) |
45% |
(87)% |
Operating Income |
(17.7) |
(4.4) |
(4.1) |
77% |
7% |
Equity from Investments |
0 |
(2.8) |
(2.9) |
na |
(4)% |
Capital Employed (in billion $) |
0.2 |
0 |
0.1 |
na |
na |
The Non-Operated Resources Segment
comprises, in terms of EBITDAs and Operating Income, the costs
relating to non-operated resources.
Non-Operated Resources EBITDAs was $(3)
million.
Non-Operated Resources Operating Income
was $(4) million. The amortization of excess streamers, mainly, has
a negative impact on the contribution of this segment.
The equity from investments includes the impact
of 50% of the Global Seismic Shipping (GSS) JV, which we own with
Eidesvik. Seven vessels were transferred to GSS in Q2 2017, four of
them are cold-stacked.
Non-Operated Resources Capital Employed
was up at $0.1 billion at the end of December 2017.
Fourth quarter 2017 financial results
Group Total Revenue was $401 million, up
22% year-on-year and 25% sequentially. The respective contributions
from the Group's businesses were 64% from GGR, 26% from Equipment
and 10% from Contractual Data Acquisition.
Group EBITDAs was $134 million, a 33.5%
margin, and $109 million after $(26) million of Non-Recurring
Charges (NRC). Excluding Non-Operated Resources (NOR), and to focus
solely on the performance of our active Business Lines, Group
EBITDAs was $137 million.
Group Operating Income was $18 million, a
4.4% margin, and $(8) million after $(26) million of NRC. Excluding
NOR, and to focus solely on the performance of our active Business
Lines, Group Operating Income was $22 million.
Equity from Investments contribution was
$(9) million and can mainly be explained by the negative
contributions from the PTSC JV in Vietnam and the Global Seismic
Shipping (GSS) JV this quarter.
Total non-recurring charges were $26
million, mainly related to the financial restructuring.
Net financial costs were $46 million:
- Cost of debt was $47 million. The total amount of interest paid
during the quarter was $13 million, as we suspended most coupons
payment during the financial restructuring
- Other financial items were positive $1 million
Income Taxes were $12 million.
Group Net Income was $(75) million after
NRC.
After minority interests, Net Income
attributable to the owners of CGG was a loss of $(77) million /
€(63) million. EPS was negative at $(1.67) / €(1.36).Cash
Flow
Cash Flow from operations was $143
million compared to $129 million for the fourth quarter of 2016.
After cash Non-Recurring Charges, the Cash Flow from operations was
$117 million.Global Capex was $124 million, up 36%
year-on-year and 88% sequentially.
- Industrial capex was $22 million, down 22% year-on-year
and up 387% sequentially
- Research & Development capex was $12 million, up 44%
year-on-year and 61% sequentially
- Multi-client cash capex was $89 million, up 67%
year-on-year and 66% sequentially
After the payment of interest expenses and Capex
and before cash NRC, Free Cash Flow was at $13 million
compared to $2 million for the fourth quarter of 2016. After cash
NRC, Free Cash Flow was at $(13) million.
Comparison of Fourth Quarter 2017 with Third Quarter 2017 and
Fourth Quarter 2016
Consolidated Income Statements In
Million $ |
Fourth Quarter2016 |
Third Quarter2017 |
Fourth Quarter2017 |
VariationYear-on-year |
VariationQuarter-to-quarter |
Exchange rate euro/dollar |
1.09 |
1.17 |
1.18 |
na |
na |
Operating Revenue |
328.3 |
320.1 |
400.7 |
22% |
25% |
GGR |
230.2 |
185.9 |
255.0 |
11% |
37% |
Equipment |
84.0 |
39.8 |
116.0 |
38% |
191% |
Contractual Data Acquisition |
51.5 |
98.7 |
41.5 |
(19)% |
(58)% |
Elimination |
(37.4) |
(4.3) |
(11.8) |
na |
na |
Gross Margin |
(27.1) |
17.4 |
58.0 |
314% |
233% |
EBITDAs before NRC |
99.8 |
89.6 |
134.1 |
34% |
50% |
GGR |
155.8 |
102.0 |
164.5 |
6% |
61% |
Equipment |
5.3 |
(8.3) |
16.4 |
209% |
298% |
Contractual Data Acquisition |
(33.2) |
5.1 |
(26.3) |
21% |
(616)% |
Non-Operated Resources |
(5.1) |
(1.5) |
(2.8) |
45% |
(87)% |
Corporate |
(6.8) |
(7.6) |
(13.8) |
103% |
82% |
Eliminations |
(16.2) |
(0.1) |
(3.9) |
na |
na |
NRC before impairment |
(43.3) |
(36.4) |
(25.5) |
(41)% |
(30)% |
Operating Income before NRC |
(70.1) |
(24.0) |
17.5 |
125% |
173% |
GGR |
26.0 |
11.8 |
63.3 |
143% |
436% |
Equipment |
(2.9) |
(15.8) |
8.9 |
407% |
156% |
Contractual Data Acquisition |
(51.4) |
(7.1) |
(33.0) |
36% |
(365)% |
Non-Operated Resources |
(17.7) |
(4.4) |
(4.1) |
77% |
7% |
Corporate |
(6.8) |
(7.6) |
(13.8) |
103% |
82% |
Eliminations |
(17.3) |
(0.9) |
(3.8) |
na |
na |
NRC |
(172.8) |
(36.4) |
(25.5) |
(85)% |
(30)% |
Operating Income after NRC |
(242.9) |
(60.4) |
(8.0) |
97% |
87% |
Net Financial Costs |
(55.4) |
(64.4) |
(45.8) |
(17)% |
(29)% |
Income Taxes |
29.6 |
11.6 |
(12.2) |
(141)% |
(205)% |
Equity from Investments |
(11.1) |
(11.2) |
(8.9) |
20% |
21% |
Net Income |
(279.8) |
(124.4) |
(74.9) |
73% |
40% |
Shareholder's Net Income |
(279.1) |
(124.7) |
(76.9) |
72% |
38% |
Earnings per share in $ |
(6.06) |
(2.71) |
(1.67) |
na |
na |
Earnings per share in € |
(5.51) |
(2.29) |
(1.36) |
na |
na |
Cash Flow Statements In Million $ |
Fourth Quarter2016 |
Third Quarter2017 |
Fourth Quarter2017 |
VariationYear-on-year |
VariationQuarter-to-quarter |
EBITDAs before NRC |
99.8 |
89.6 |
134.1 |
34% |
50% |
Net tax paid |
0.3 |
(0.2) |
1.9 |
533% |
na |
Change in Working Capital |
35.6 |
(4.8) |
9.4 |
(74)% |
296% |
Other items |
(6.6) |
(15.4) |
(2.0) |
70% |
87% |
Cash Flow provided by operating activities |
129.1 |
69.2 |
143.4 |
11% |
107% |
Paid Cost of Debt |
(38.8) |
(14.5) |
(12.8) |
(67)% |
(12)% |
Capex (including change in fixed assets payables) |
(89.1) |
(67.0) |
(120.0) |
35% |
79% |
Industrial |
(27.4) |
(5.8) |
(18.9) |
(31)% |
226% |
R&D |
(8.4) |
(7.5) |
(12.1) |
44% |
61% |
Multi-Client (Cash) |
(53.3) |
(53.7) |
(89.0) |
67% |
66% |
Marine MC |
(50.5) |
(48.3) |
(74.0) |
47% |
53% |
Land MC |
(2.8) |
(5.4) |
(15.0) |
436% |
178% |
Proceeds from disposals of assets |
0.8 |
1.4 |
2.8 |
250% |
100% |
Free Cash Flow before Cash NRC |
2.0 |
(10.9) |
13.4 |
570% |
223% |
Cash NRC |
(34.0) |
24.6 |
(26.4) |
(22)% |
(207)% |
Free Cash Flow after Cash NRC |
(32.0) |
13.7 |
(13.0) |
59% |
(195)% |
Non Cash Cost of Debt and Other Financial Items |
(5.6) |
(54.2) |
(35.6) |
(536)% |
34% |
Specific items |
0.0 |
6.6 |
(3.3) |
na |
(150)% |
FX Impact |
30.0 |
(39.8) |
(17.3) |
(158)% |
57% |
Change in Net Debt |
(7.6) |
(73.7) |
(69.2) |
(811)% |
6% |
Net debt |
2,311.6 |
2,570.7 |
2,639.9 |
14% |
3% |
Full-Year 2017 Financial Results
Group Total Revenue was $1,320 million,
up 10% compared to 2016. The respective contributions from the
Group's businesses were 62% from GGR, 16% from Equipment and 22%
from Contractual Data Acquisition.
Group EBITDAs was $372 million, a 28.2%
margin, and $186 million after $(186) million of NRC. Excluding
NOR, and to focus solely on the performance of our active Business
Lines, Group EBITDAs was $387 million.
Group Operating Income was $(77) million,
a (5.8)% margin, and $(264) million after $(186) million of NRC.
Excluding NOR, and to focus solely on the performance of our active
Business Lines, Group Operating Income was $(43) million.
- GGR operating income margin was at 15.9%. Multi-Client
sales reached $469 million, up 22%, with a cash prefunding rate of
107%. Our highest marine multi-client sales were made in Brazil,
the North Sea and Gulf of Mexico. The depreciation rate was 63%
leading to a Net Book Value of $831 million at the end of
December.
Subsurface Imaging delivered a resilient
performance: we maintained our market share. While reservoir
businesses were impacted by clients' capex cut.
- Equipment operating income margin was at (14.9)%.
Despite very efficient cost management and manufacturing
flexibility, profitability was impacted by very low volumes.
- Contractual Data Acquisition operating income margin was
at (31.7)% due to weak pricing conditions in Marine, despite our
fleet's good operational performance with a high production rate at
97%. 52% of our fleet was dedicated to the contractual market as we
executed two large contracts with high-end multi-source vessel
setup. Positive impact of lower marine cost base in 2017 was partly
offset by the non-recurrent R&D tax credit received in 2016.
Land acquisition suffered from delays in Algeria and early
termination in Angola.
- NOR operating income was at $(34) million.
Equity from Investments contribution was
$(20) million, mainly explained by the negative contribution from
the PTSC JV (in Vietnam) and Global Seismic Shipping (GSS) JV.
Total non-recurring charges (NRC) were
$186 million:
- $102 million of Financial Restructuring costs
- $84 million of Group Transformation Plan charges, mainly
related to Global Seismic Shipping set up
Net financial costs were $207
million:
- Cost of debt was $211 million, including $21 million of
accelerated amortization of historical issuing fees. The total
amount of interest paid was $85 million, as we suspended most
coupons payment during the financial restructuring
- Other financial items were positive at $4 million
Income Taxes were $24 million.
Group Net Income was $(514) million after
NRC.After minority interests, Net Income attributable to the
owners of CGG was a loss of $(515) million / €(459) million.
EPS was negative at $(11.18) / €(9.96).
Cash Flow
Cash Flow from operations was $299
million before NRC, compared to $522 million in 2016. Cash Flow
from operations was $198 million after cash NRC.
Global Capex was $335 million, down 15% year-on-year:
- Industrial capex was $50 million, down 24%
year-on-year
- Research & development capex was $34 million, stable
year-on-year
- Multi-client cash capex was $251 million, down 15%
year-on-year
After the payment of interest expenses and Capex
and before NRC, Free Cash Flow was $(96) million compared to
$(7) million in 2016. After cash NRC, Free Cash Flow was $(197)
million.
Balance Sheet
Group gross debt was $2.955 billion[1] at the
end of December 2017. Available cash was $315 million and Group
net debt was $2.640 billion.
The Group's liquidity amounted to $315
million at the end of December 2017.
Leverage ratio and interest cover ratio are not
applicable as of December 31, 2017 as a result of the French
safeguard procedure and US Chapter 11 procedure.
Full-Year 2017 comparison with
Full-Year 2016
Consolidated Income Statements In
Million $ |
FY 2016 |
FY 2017 |
VariationYear-on-year |
Exchange rate euro/dollar |
1.11 |
1.12 |
na |
Operating Revenue |
1,195.5 |
1,320.0 |
10% |
GGR |
784.0 |
819.6 |
5% |
Equipment |
255.0 |
241.2 |
(5)% |
Contractual Data Acquisition |
238.0 |
288.7 |
21% |
Elimination |
(81.5) |
(29.5) |
na |
Gross Margin |
(53.5) |
81.4 |
252% |
EBITDAs before NRC |
327.9 |
372.4 |
14% |
GGR |
460.4 |
486.0 |
6% |
Equipment |
(6.4) |
(6.1) |
5% |
Contractual Data Acquisition |
(35.9) |
(47.3) |
(32)% |
Non-Operated Resources |
(22.2) |
(14.3) |
36% |
Corporate |
(33.2) |
(37.8) |
14% |
Eliminations |
(34.8) |
(8.1) |
na |
NRC before impairment |
(54.3) |
(186.3) |
243% |
Operating Income before NRC |
(212.7) |
(77.2) |
64% |
GGR |
81.4 |
130.7 |
61% |
Equipment |
(41.9) |
(35.9) |
14% |
Contractual Data Acquisition |
(98.1) |
(91.4) |
7% |
Non-Operated Resources |
(84.3) |
(34.1) |
60% |
Corporate |
(33.2) |
(37.8) |
14% |
Eliminations |
(36.6) |
(8.7) |
na |
NRC |
(183.8) |
(186.3) |
1% |
Operating Income after NRC |
(396.5) |
(263.5) |
34% |
Net Financial Costs |
(185.6) |
(206.8) |
11% |
Income Taxes |
13.7 |
(23.7) |
(273)% |
Equity from Investments |
(8.2) |
(20.1) |
(145)% |
Net Income |
(576.6) |
(514.1) |
11% |
Shareholder's Net Income |
(573.4) |
(514.9) |
10% |
Earnings per share in $ |
(13.26) |
(11.18) |
na |
Earnings per share in € |
(11.99) |
(9.96) |
na |
Cash Flow Statements In Million $ |
FY 2016 |
FY 2017 |
VariationYear-on-year |
EBITDAs before NRC |
327.9 |
372.4 |
14% |
Net tax paid |
(12.6) |
3.5 |
(128)% |
Change in Working Capital |
197.7 |
(40.0) |
(120)% |
Other items |
9.4 |
(36.7) |
(490)% |
Cash Flow provided by operating activities |
522.4 |
299.2 |
(43)% |
Paid Cost of Debt |
(141.8) |
(85.0) |
(40)% |
Capex (including change in fixed assets payables) |
(399.6) |
(332.2) |
(17)% |
Industrial |
(70.5) |
(47.0) |
(33)% |
R&D |
(34.0) |
(34.2) |
1% |
Multi-Client (Cash) |
(295.1) |
(251.0) |
(15)% |
Marine MC |
(265.0) |
(217.8) |
(18)% |
Land MC |
(30.1) |
(33.2) |
10% |
Proceeds from disposals of assets |
12.3 |
22.3 |
81% |
Free Cash Flow before Cash NRC |
(6.7) |
(95.7) |
na |
Cash NRC |
(167.3) |
(101.3) |
(39)% |
Free Cash Flow after Cash NRC |
(174.0) |
(197.0) |
(13)% |
Non Cash Cost of Debt and Other Financial Items |
(32.5) |
(127.5) |
(292)% |
Specific items |
389.2 |
3.8 |
(99)% |
FX Impact |
5.2 |
(134.4) |
na |
Other variance non-cash |
0 |
126.8 |
na |
Change in Net Debt |
187.9 |
(328.3) |
(275)% |
Net debt |
2,311.6 |
2,639.9 |
14% |
Q4 2017 Conference call
An English language analysts' conference call is scheduled today
at 9:00 am (Paris time) - 8:00 am (London
time) To
follow this conference, please access the live webcast:
From your computer at: |
www.cgg.com |
A replay of the conference will be available via webcast on the
CGG website at: www.cgg.com.
For analysts, please dial the following numbers 5 to 10 minutes
prior to the scheduled start time:
France call-in UK call-in Access code |
+33(0) 1
76 77 22 74+44(0) 330 336 91054363590 |
About CGG:
CGG (www.cgg.com) is a fully integrated
Geoscience company providing leading geological, geophysical and
reservoir capabilities to its broad base of customers primarily
from the global oil and gas industry. Through its three
complementary business segments of Equipment, Acquisition and
Geology, Geophysics & Reservoir (GGR), CGG brings value across
all aspects of natural resource exploration and exploitation. CGG
employs around 5,300 people around the world, all with a Passion
for Geoscience and working together to deliver the best solutions
to its customers.
CGG is listed on the Euronext Paris SA (ISIN:
0013181864) and the New York Stock Exchange (in the form of
American Depositary Shares. NYSE: CGG).
Contacts
Group
Communications Christophe BarniniTel: + 33 1 64 47 38
11E-Mail: : invrelparis@cgg.com |
Investor RelationsCatherine LeveauTel: +33 1 64 47 34
89E-mail: : invrelparis@cgg.com |
CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2017
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
Amounts in millions
of U.S.$, unless indicated |
December 31, 2017 |
December 31, 2016 |
ASSETS |
|
|
Cash and cash
equivalents |
315.4 |
538.8 |
Trade accounts and
notes receivable, net |
522.6 |
434.8 |
Inventories and
work-in-progress, net |
239.3 |
266.3 |
Income tax assets |
61.6 |
112.2 |
Other current assets,
net |
117.0 |
105.8 |
Assets held for sale,
net |
14.6 |
18.6 |
Total current
assets |
1,270.5 |
1,476.5 |
Deferred tax
assets |
21.9 |
26.0 |
Investments and other
financial assets, net |
62.6 |
51.9 |
Investments in
companies under equity method |
192.7 |
190.5 |
Property, plant and
equipment, net |
330.3 |
708.6 |
Intangible assets,
net |
1,152.2 |
1,184.7 |
Goodwill, net |
1,234.0 |
1,223.3 |
Total non-current
assets |
2,993.7 |
3,385.0 |
TOTAL
ASSETS |
4,264.2 |
4,861.5 |
LIABILITIES AND
EQUITY |
|
|
Bank overdrafts |
0.2 |
1.6 |
Current portion of
financial debt (1) |
2,902.8 |
2,782.1 |
Trade accounts and
notes payables |
169.9 |
157.4 |
Accrued payroll
costs |
153.6 |
138.9 |
Income taxes
payable |
38.7 |
31.6 |
Advance billings to
customers |
25.9 |
24.4 |
Provisions - current
portion |
58.3 |
110.7 |
Current liabilities
associated with funded receivables |
9.8 |
- |
Other current
liabilities |
123.1 |
140.2 |
Total current
liabilities |
3,482.3 |
3,386.9 |
Deferred tax
liabilities |
62.0 |
67.6 |
Provisions -
non-current portion |
121.6 |
162.1 |
Financial
debt(1) |
52.3 |
66.7 |
Other non-current
liabilities |
17.9 |
21.4 |
Total non-current
liabilities |
253.8 |
317.8 |
Common stock:
41,690,360 shares authorized and 22,133,149 shares with a
€0.80 nominal value issued and outstanding at
December 31, 2017 |
20.3 |
20.3 |
Additional paid-in
capital |
1,850.0 |
1,850.0 |
Retained earnings |
(1,354.6) |
(845.7) |
Other Reserves |
37.6 |
171.1 |
Treasury shares |
(20.1) |
(20.1) |
Cumulative income and
expense recognized directly in equity |
(0.8) |
(0.8) |
Cumulative translation
adjustment |
(43.3) |
(54.1) |
Equity attributable
to owners of CGG SA |
489.1 |
1,120.7 |
Non-controlling
interests |
39.0 |
36.1 |
Total
equity (2) |
528.1 |
1,156.8 |
TOTAL LIABILITIES
AND EQUITY |
4,264.2 |
4,861.5 |
____________
- After completion of the financial restructuring, the financial
debt decreases from US$2,955 million as of December 31, 2017 down
to US$1,205 million as of February 21, 2018, out of which US$10
million are current and US$1,195 million are non-current.
- The equity of the Group will be positively impacted by the
completion of the financial restructuring as of February 21, 2018:
c. US$2.05 billion equity increase, including a c.US$0.75 billion
net income impact.
CONSOLIDATED STATEMENT OF
OPERATIONS
|
December 31, |
Amounts in millions
of U.S.$, except per share data or unless indicated |
2017 |
2016 |
Operating
revenues |
|
1,320.0 |
|
1,195.5 |
Other income from
ordinary activities |
|
0.8 |
|
1.4 |
Total income from
ordinary activities |
|
1,320.8 |
|
1,196.9 |
Cost of operations |
|
(1,239.4) |
|
(1,250.4) |
Gross
profit |
|
81.4 |
|
(53.5) |
Research and
development expenses - net |
|
(28.8) |
|
(13.6) |
Marketing and selling
expenses |
|
(55.5) |
|
(62.2) |
General and
administrative expenses |
|
(81.7) |
|
(84.3) |
Other revenues
(expenses) - net |
|
(178.9) |
|
(182.9) |
Operating
income |
|
(263.5) |
|
(396.5) |
Expenses related to
financial debt |
|
(214.0) |
|
(176.9) |
Income provided by cash
and cash equivalents |
|
3.0 |
|
2.7 |
Cost of financial
debt, net |
|
(211.0) |
|
(174.2) |
Other financial income
(loss) |
|
4.2 |
|
(11.4) |
Income (loss) of
consolidated companies before income taxes |
|
(470.3) |
|
(582.1) |
Income taxes |
|
(23.7) |
|
13.7 |
Net income (loss)
from consolidated companies |
|
(494.0) |
|
(568.4) |
Share of income (loss)
in companies accounted for under equity method |
|
(20.1) |
|
(8.2) |
Net income
(loss) |
|
(514.1) |
|
(576.6) |
Attributable to : |
|
|
|
|
Owners of CGG SA |
$ |
(514.9) |
|
(573.4) |
Owners of CGG SA
(1) |
€ |
(458.6) |
|
(518.6) |
Non-controlling
interests |
$ |
0.8 |
|
(3.2) |
|
|
|
|
|
Weighted average number
of shares outstanding (2) (3) (4) |
|
46,038,287 |
|
43,255,753 |
Dilutive potential
shares from stock options |
|
(5) |
|
(5) |
Dilutive potential
shares from performance share plans |
|
(5) |
|
(5) |
Dilutive potential
shares from convertible bonds |
|
(5) |
|
(5) |
Dilutive weighted
average number of shares outstanding adjusted when dilutive (2) (3)
(4) |
|
46,038,287 |
|
43,255,753 |
Net income (loss)
per share |
|
|
|
|
Basic |
$ |
(11.18) |
|
(13.26) |
Basic (1) |
€ |
(9.96) |
|
(11.99) |
Diluted |
$ |
(11.18) |
|
(13.26) |
Diluted (1) |
€ |
(9.96) |
|
(11.99) |
___________________
- Converted at the average exchange rate of U.S.$1.1227 and
U.S.$1.1057 per € for the periods ended December 31, 2017 and 2016,
respectively.
- As a result of the February 5, 2016 CGG SA capital increase via
an offering of preferential subscription rights to existing
shareholders, the calculation of basic and diluted earnings per
share for 2015 has been adjusted retrospectively. Number of
ordinary shares outstanding has been adjusted to reflect the
proportionate change in the number of shares.
- As a result of the July 20, 2016 reverse stock split the
calculation of basic and diluted earnings per share for 2015 has
been adjusted retrospectively. Number of ordinary shares
outstanding has been adjusted to reflect the proportionate change
in the number of shares.
- As a result of the February 21, 2018 CGG SA capital increase
via an offering of preferential subscription rights to existing
shareholders, the calculation of basic and diluted earnings per
share for 2017, 2016 and 2015 has been adjusted retrospectively.
Number of ordinary shares outstanding has been adjusted to reflect
the proportionate change in the number of shares.
- As our net result was a loss, stock options and performance
shares plans had an accretive effect; as a consequence, potential
shares linked to those instruments were not taken into account in
the dilutive weighted average number of shares or in the
calculation of diluted loss per share.
CONSOLIDATED STATEMENT OF OPERATIONS
|
Three months ended December 31, |
Amounts in millions
of U.S.$, except per share data or unless indicated |
2017 |
2016 |
Operating
revenues |
|
400.7 |
|
328.3 |
Other income from
ordinary activities |
|
0.1 |
|
0.5 |
Total income from
ordinary activities |
|
400.8 |
|
328.8 |
Cost of operations |
|
(342.8) |
|
(355.9) |
Gross
profit |
|
58.0 |
|
(27.1) |
Research and
development expenses - net |
|
(7.4) |
|
(7.0) |
Marketing and selling
expenses |
|
(14.5) |
|
(15.8) |
General and
administrative expenses |
|
(22.5) |
|
(21.3) |
Other revenues
(expenses) - net |
|
(21.6) |
|
(171.7) |
Operating
income |
|
(8.0) |
|
(242.9) |
Expenses related to
financial debt |
|
(47.7) |
|
(45.7) |
Income provided by cash
and cash equivalents |
|
0.9 |
|
1.3 |
Cost of financial
debt, net |
|
(46.8) |
|
(44.4) |
Other financial income
(loss) |
|
1.0 |
|
(11.0) |
Income (loss) of
consolidated companies before income taxes |
|
(53.8) |
|
(298.3) |
Income taxes |
|
(12.2) |
|
29.6 |
Net income (loss)
from consolidated companies |
|
(66.0) |
|
(268.7) |
Share of income (loss)
in companies accounted for under equity method |
|
(8.9) |
|
(11.1) |
Net income
(loss) |
|
(74.9) |
|
(279.8) |
Attributable to : |
|
|
|
|
Owners of CGG SA |
$ |
(76.9) |
|
(279.1) |
Owners of CGG SA
(1) |
€ |
(62.5) |
|
(253.6) |
Non-controlling
interests |
$ |
2.0 |
|
(0.7) |
|
|
|
|
|
Weighted average number
of shares outstanding (2) (3) (4) |
|
46,038,287 |
|
46,038,287 |
Dilutive potential
shares from stock options |
|
(5) |
|
(5) |
Dilutive potential
shares from performance share plans |
|
(5) |
|
(5) |
Dilutive potential
shares from convertible bonds |
|
(5) |
|
(5) |
Dilutive weighted
average number of shares outstanding adjusted when dilutive (2) (3)
(4) |
|
46,038,287 |
|
46,038,287 |
Net income (loss)
per share |
|
|
|
|
Basic |
$ |
(1.67) |
|
(6.06) |
Basic (1) |
€ |
(1.36) |
|
(5.51) |
Diluted |
$ |
(1.67) |
|
(6.06) |
Diluted (1) |
€ |
(1.36) |
|
(5.51) |
___________________
- Corresponding to the full year amount in euros less the nine
months amount in euros.
- As a result of the February 5, 2016 CGG SA capital increase via
an offering of preferential subscription rights to existing
shareholders, the calculation of basic and diluted earnings per
share for 2015 has been adjusted retrospectively. Number of
ordinary shares outstanding has been adjusted to reflect the
proportionate change in the number of shares.
- As a result of the July 20, 2016 reverse stock split the
calculation of basic and diluted earnings per share for 2015 has
been adjusted retrospectively. Number of ordinary shares
outstanding has been adjusted to reflect the proportionate change
in the number of shares.
- As a result of the February 21, 2018 CGG SA capital increase
via an offering of preferential subscription rights to existing
shareholders, the calculation of basic and diluted earnings per
share for 2017, 2016 and 2015 has been adjusted retrospectively.
Number of ordinary shares outstanding has been adjusted to reflect
the proportionate change in the number of shares.
- As our net result was a loss, stock options and performance
shares plans had an accretive effect; as a consequence, potential
shares linked to those instruments were not taken into account in
the dilutive weighted average number of shares or in the
calculation of diluted loss per share.
ANALYSIS BY SEGMENT
|
December 31, |
|
2017 |
|
2016 |
|
In millions of
U.S.$, except for assets and capital
employed in billions of U.S.$ |
Contrac tual Data Acqui sition |
Non Operated Resources |
GGR |
Equip ment |
Elimi nationsand other |
Conso lidated Total |
|
Contrac tual Data Acqui sition |
Non Operated Resources |
GGR |
Equip ment |
Elimi nationsand other |
Conso lidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliated customers |
284.9 |
- |
819.6 |
215.5 |
- |
1,320.0 |
|
232.2 |
- |
784.0 |
179.3 |
- |
1,195.5 |
|
Inter-segment
revenues |
3.8 |
- |
- |
25.7 |
(29.5) |
- |
|
5.8 |
- |
- |
75.7 |
(81.5) |
- |
|
Operating
revenues |
288.7 |
- |
819.6 |
241.2 |
(29.5) |
1,320.0 |
|
238.0 |
- |
784.0 |
255.0 |
(81.5) |
1,195.5 |
|
Depreciation and
amortization(excluding multi-client surveys) |
(43.9) |
(19.8) |
(87.5) |
(29.8) |
(0.2) |
(181.2) |
|
(62.7) |
(93.5) |
(101.1) |
(35.5) |
(0.4) |
(293.2) |
|
Depreciation and
amortization of multi-client surveys |
- |
- |
(297.7) |
- |
- |
(297.7) |
|
- |
- |
(417.2) |
- |
- |
(417.2) |
|
Operating
income |
(91.4) |
(220.4) |
130.7 |
(35.9) |
(46.5) |
(263.5) |
|
(98.9) |
(170.0) |
(15.9) |
(41.9) |
(69.8) |
(396.5) |
|
Share of income in
companies accounted for under equity method (1) |
(11.2) |
(8.5) |
(0.4) |
- |
- |
(20.1) |
|
(6.0) |
- |
(2.2) |
- |
- |
(8.2) |
|
Earnings before
interest and tax (2) |
(102.6) |
(228.9) |
130.3 |
(35.9) |
(46.5) |
(283.6) |
|
(104.9) |
(170.0) |
(18.1) |
(41.9) |
(69.8) |
(404.7) |
|
Capital
expenditures(excluding multi-client surveys) (3) |
17.0 |
- |
45.0 |
22.2 |
(3.0) |
81.2 |
|
27.7 |
- |
60.1 |
12.4 |
4.3 |
104.5 |
|
Investments in
multi-client surveys, net cash |
- |
- |
251.0 |
- |
- |
251.0 |
|
- |
- |
295.1 |
- |
- |
295.1 |
|
Capital
employed |
0.3 |
0.1 |
2.2 |
0.6 |
- |
3.2 |
|
0.4 |
0.2 |
2.3 |
0.6 |
- |
3.5 |
|
Total identifiable
assets |
0.5 |
0.1 |
2.6 |
0.7 |
- |
3.9 |
|
0.6 |
0.4 |
2.5 |
0.7 |
0.1 |
4.3 |
|
- Share of operating results of companies accounted for under
equity method was U.S.$(11.9) million and U.S.$(6.9) million for
the year ended December 31, 2017 and 2016,
respectively.
- At the Group level, Operating Income and EBIT before costs
related to the Transformation Plan amounted to
US$(77.2) million and US$(97.3) million respectively, for
the year ended December 31, 2017, compared to U.S.$(212.7)
million and U.S.$(220.9) million, respectively, for the year ended
December 31, 2016.
For the year ended December 31, 2017,
Non-Operated Resources EBIT included US$(186.3) million relating to
the Transformation Plan. For the year ended December 31, 2016,
Non-Operated Resources EBIT included US$(54.3) million relating to
the Transformation Plan and US$(31.4) million relating to vessels
impairment.
For the year ended December 31, 2017,
"eliminations and other" included US$(37.8) million of general
corporate expenses and US$(8.7) million of intra-group margin.For
the year ended December 31, 2016, "eliminations and other" included
US$(33.2) million of general corporate expenses and US$(36.6)
million of intra-group margin.
- Capital expenditures included capitalized development
costs of U.S.$(34.1) million and U.S.$(34.0) million for the year
ended December 31, 2017 and 2016, respectively. "Eliminations and
other" corresponded to the variance of suppliers of assets for the
period.
ANALYSIS BY SEGMENT
|
Three months ended December 31, |
|
2017 |
|
2016 |
|
In millions of
U.S.$, except for assets and capital employed in billions of
U.S.$ |
Contrac tual Data Acqui sition |
Non Operated Resou rces |
GGR |
Equip ment |
Elimi nationsand other |
Conso lidated Total |
|
Contra ctual Data Acqui sition |
Non Operated Resour ces |
GGR |
Equip ment |
Elimi nationsand other |
Conso lidated Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
unaffiliated customers |
39.8 |
- |
255.0 |
105.9 |
- |
400.7 |
|
50.3 |
- |
230.2 |
47.8 |
- |
328.3 |
|
Inter-segment
revenues |
1.7 |
- |
- |
10.1 |
(11.8) |
- |
|
1.2 |
- |
- |
36.2 |
(37.4) |
- |
|
Operating
revenues |
41.5 |
- |
255.0 |
116.0 |
(11.8) |
400.7 |
|
51.5 |
- |
230.2 |
84.0 |
(37.4) |
328.3 |
|
Depreciation and
amortization(excluding multi-client surveys) |
(6.7) |
(1.4) |
(26.4) |
(7.5) |
0.5 |
(41.5) |
|
(18.8) |
(44.0) |
(22.8) |
(8.2) |
(0.1) |
(93.9) |
|
Depreciation and
amortization of multi-client surveys |
- |
- |
(85.2) |
- |
- |
(85.2) |
|
- |
- |
(212.1) |
- |
- |
(212.1) |
|
Operating
income |
(33.0) |
(29.6) |
63.3 |
8.9 |
(17.6) |
(8.0) |
|
(52.2) |
(92.4) |
(71.3) |
(2.9) |
(24.1) |
(242.9) |
|
Share of income in
companies accounted for under equity method (1) |
(5.8) |
(2.9) |
(0.2) |
- |
- |
(8.9) |
|
(8.9) |
- |
(2.2) |
- |
- |
(11.1) |
|
Earnings before
interest and tax (2) |
(38.8) |
(32.5) |
63.1 |
8.9 |
(17.6) |
(16.9) |
|
(61.1) |
(92.4) |
(73.5) |
(2.9) |
(24.1) |
(254.0) |
|
Capital
expenditures(excluding multi-client surveys) (3) |
7.3 |
- |
14.9 |
12.3 |
(3.5) |
31.0 |
|
15.0 |
- |
18.7 |
3.6 |
(1.5) |
35.8 |
|
Investments in
multi-client surveys, net cash |
- |
- |
89.0 |
- |
- |
89.0 |
|
- |
- |
53.3 |
- |
- |
53.3 |
|
- Share of operating results of companies accounted for under the
equity method was U.S.$(17.6) million and U.S.$(10.0) million for
the three months ended December 31, 2017 and 2016,
respectively.
- At the Group level, Operating Income and EBIT before costs
related to the Transformation Plan amounted to U.S.$17.5 million
and U.S.$8.6 million, respectively, for the three months ended
December 31, 2017, compared to U.S.$(70.1) million and U.S.$(81.2)
million, respectively, for the three months ended December 31,
2016.
For the three months ended December 31, 2017,
Non-Operated Resources EBIT included U.S.$(25.5) million related to
the Transformation Plan. For the three months ended December 31,
2016, Non-Operated Resources EBIT included U.S.$(43.3) million
related to the Transformation Plan.
For the three months ended December 31, 2017,
"eliminations and other" included U.S.$(13.8) million of general
corporate expenses and U.S.$(3.8) million of intra-group margin.
For the three months ended December 31, 2016, "eliminations and
other" included U.S.$(6.8) million of general corporate expenses
and U.S.$(17.3) million of intra-group margin.
- Capital expenditures included capitalized development
costs of U.S.$(12.0) million and U.S.$(8.4) million for the three
months ended December 31, 2017 and 2016, respectively.
"Eliminations and other" corresponded to the variance of suppliers
of assets for the period.
CONSOLIDATED STATEMENT OF CASH FLOWS
|
December 31, |
Amounts in millions
of U.S.$ |
2017 |
2016 |
OPERATING |
|
|
|
|
Net income (loss) |
|
(514.1) |
|
(576.6) |
Depreciation and
amortization |
|
181.2 |
|
293.2 |
Multi-client surveys
depreciation and amortization |
|
297.7 |
|
417.2 |
Depreciation and
amortization capitalized in multi-client surveys |
|
(30.0) |
|
(42.3) |
Variance on
provisions |
|
(16.7) |
|
(105.6) |
Stock based compensation
expenses |
|
0.7 |
|
2.0 |
Net (gain) loss on
disposal of fixed and financial assets |
|
(30.4) |
|
0.1 |
Equity (income) loss of
investees |
|
20.1 |
|
8.2 |
Dividends received from
investments in companies under equity method |
|
2.0 |
|
13.0 |
Other non-cash items |
|
49.2 |
|
0.3 |
Net cash-flow including
net cost of financial debt and income tax |
|
(40.3) |
|
9.5 |
Less net cost of financial
debt |
|
211.0 |
|
174.2 |
Less income tax
expense |
|
23.7 |
|
(13.7) |
Net cash-flow excluding
net cost of financial debt and income tax |
|
194.4 |
|
170.0 |
Income tax paid |
|
43.5 |
|
(12.6) |
Net cash-flow before
changes in working capital |
|
237.9 |
|
157.4 |
- change in trade
accounts and notes receivable |
|
(97.9) |
|
320.2 |
- change in inventories
and work-in-progress |
|
54.5 |
|
60.2 |
- change in other
current assets |
|
(15.8) |
|
(27.3) |
- change in trade
accounts and notes payable |
|
(0.4) |
|
(98.2) |
- change in other
current liabilities |
|
19.6 |
|
(58.2) |
Impact of changes in
exchange rate on financial items |
|
- |
|
1.0 |
Net cash-flow
provided by operating activities |
|
197.9 |
|
355.1 |
INVESTING |
|
|
|
|
Total capital
expenditures (including variation of fixed assets suppliers,
excluding multi-client surveys) |
|
(81.2) |
|
(104.5) |
Investment in
multi-client surveys, net cash |
|
(251.0) |
|
(295.1) |
Proceeds from disposals
of tangible and intangible assets |
|
22.3 |
|
12.3 |
Total net proceeds from
financial assets |
|
4.5 |
|
6.1 |
Acquisition of
investments, net of cash and cash equivalents acquired |
|
- |
|
- |
Variation in loans
granted |
|
(1.5) |
|
18.3 |
Variation in subsidies
for capital expenditures |
|
(0.5) |
|
(0.6) |
Variation in other
non-current financial assets |
|
4.2 |
|
(17.7) |
Net cash-flow used
in investing activities |
|
(303.2) |
|
(381.2) |
FINANCING |
|
|
|
|
Repayment of long-term
debt |
|
(26.9) |
|
(496.1) |
Total issuance of
long-term debt |
|
2.3 |
|
458.1 |
Lease repayments |
|
(5.7) |
|
(8.7) |
Change in short-term
loans |
|
(1.4) |
|
0.9 |
Financial expenses
paid |
|
(85.0) |
|
(141.8) |
Net proceeds from capital
increase: |
|
|
|
|
- from
shareholders |
|
- |
|
367.5 |
- from
non-controlling interests of integrated companies |
|
- |
|
- |
Dividends paid and share
capital reimbursements: |
|
|
|
|
- to
shareholders |
|
- |
|
- |
- to non-controlling
interests of integrated companies |
|
- |
|
(4.4) |
Acquisition/disposal from
treasury shares |
|
- |
|
0.5 |
Net cash-flow
provided by (used in) financing activities |
|
(116.7) |
|
176.0 |
Effects of exchange
rates on cash |
|
6.1 |
|
3.6 |
Impact of changes in
consolidation scope |
|
(7.5) |
|
- |
Net increase
(decrease) in cash and cash equivalents |
|
(223.4) |
|
153.5 |
Cash and cash
equivalents at beginning of year |
|
538.8 |
|
385.3 |
Cash and cash
equivalents at end of period |
|
315.4 |
|
538.8 |
Attachment:
http://www.globenewswire.com/NewsRoom/AttachmentNg/99c5e55b-9017-441e-8aac-89d58bdbb13f