CGG Announces its Q4 and
Full Year 2020 Results
Q4 Solid Operational
Performance
2021 Positive Net Cash Flow
sustained by gradual recovery
PARIS, France – March 5, 2021 –
CGG (ISIN: FR0013181864),
a world leader in Geoscience,
announced today its fourth quarter and full year 2020 audited
results.
Commenting on these results,
Sophie Zurquiyah, CGG CEO, said:
“In the particularly challenging year of 2020,
which saw the collapse of the oil & gas market across the
second and third quarters, we finished the year with solid fourth
quarter operational performance. During 2020, we successfully
completed our exit from the Acquisition business while continuing
to advance our high-end Geoscience technologies for reservoir
development and production. We also delivered our Multi-client
surveys in the industry’s core mature sedimentary basins and
released new products while reinforcing our market leadership in
Equipment. Our initiatives towards energy transition are
accelerating with the development and commercialization of new
business offerings, along with our announced target to achieve
carbon neutrality by 2050. Looking forward, as global
economies continue to progressively recover and with oil price
stabilizing above $50/bbl, we expect CGG’s performance to benefit
from the proactive cost reduction actions and gradually strengthen
in the second half of the year, delivering positive net cash flow
in 2021.“
Q4 2020: Solid Operational Performance
-
IFRS figures: revenue at $217m, EBITDAs at $52m,
OPINC at $(58)m
-
Segment revenue at $283m, up 42%
quarter-on-quarter and down (29)% year-on-year
Geoscience: Increased software sales and sustained activity of
large and dedicated imaging centersMulti-client: Solid prefunding
rate of 171% in Q4 Equipment: Solid quarter driven by
land equipment deliveries
-
Segment EBITDAs at $118m and
Adjusted* Segment
EBITDAs at $122m before $(4)m of
non-recurring severance costs, a 43% margin
-
Segment Operating Income at
$(42)m and
Adjusted* Segment
Operating Income at $17m before $(59)m of
non-recurring charges
-
Group Net loss at $(100)m
including $(61)m non-recurring charges on continuing activities and
$(23)m non-recurring charges on discontinued activities
-
Group segment backlog at January
1st 2021 stands at
$421m
*Adjusted indicators represent supplementary information adjusted
for non-recurring charges triggered by economic
downturn. Full Year 2020: Financial performance
hampered by Covid-19 pandemic impact
-
IFRS figures: revenue at $886m, EBITDAs at $292m,
OPINC at $(173)m
-
Segment revenue at $955m, down
(32)% year-on-year
-
Segment EBITDAs at $361m and
Adjusted* Segment
EBITDAs at $402m before $(42)m of
non-recurring severance costs, a 42% margin
-
Segment Operating Income at
$(164)m and
Adjusted* Segment
Operating Income at $48m before $(213)m
of non-recurring charges
-
Group Net loss at $(438)m
including $(269)m non-recurring charges on continuing activities
and $(67)m non-recurring charges on discontinued activities
Liquidity of $385m and Net Debt (before IFRS 16) at
$849m at year-end 2020
-
Q4 2020 Net Cash Flow at $(95)m
including negative change in working capital of $(88)m supporting
increased December sales
-
FY 2020 Net Cash Flow of $(247)m
including $(89)m negative change in working capital and $(101)m
non-recurring cash costs
-
Liquidity of $385m and
Net debt before IFRS 16 at $849m
as of December 31, 2020
CGG is in a leading position to benefit from progressive
market recovery With continuing acceleration of
Covid-19 vaccinations world economies should continue to
progressively recover from pandemic in 2021. Recent OPEC+
agreements support the rebalancing of supply and demand and Brent
oil price has gradually recovered and stabilized above the $50/bbl
threshold.CGG will continue to invest in geoscience technologies
that support clients’ prioritization towards reservoir development
and production optimization. After a low Q1, our Geoscience
activity will start recovering during the second half of the year
on the back of solid demand for best-in-class subsurface imaging
technologies and sustained activity with large NOCs. Our
Multi-client business will reduce capex keeping its focus on
expanding our unique footprint offshore Brazil and in the North Sea
while reprocessing existing data libraries with our latest imaging
technologies.Our Equipment business should benefit from solid
deliveries for land mega crews in Saudi Arabia in H1 and improved
demand for its large portfolio of WING nodes onshore and GPR nodes
offshore.CGG continues to progressively develop its existing energy
transition businesses, leveraging its core capabilities into other
domains (Geothermal, Mining and SHM), expanding into areas where
clients are growing (Carbon capture, utilization and storage) and
hiring new talents. Financial objectives: positive net
cash flow in 2021Given the context outlined above and
assuming there will be no deterioration in Covid-19 pandemic and
market conditions, CGG segment
revenue is expected to increase by low single digits
year-on-year with growth in Equipment, gradual recovery in
Geoscience from H2 2021 and reduced Multi-Client prefunding
revenue.Segment EBITDAs is expected to remain
stable with a less favorable business mix. Net
cash flow is anticipated to be positive. The Group will
continue to focus on capital discipline and cash generation.
Multi-client cash capex is expected to be reduced to around $165
million with prefunding above 75% and industrial capex is expected
to be stable at around $70 million. Non-recurring cash costs are
expected to come down to around $(60) million. |
Key Figures - Fourth Quarter
2020
Key Figures IFRS - QuarterIn million
$ |
2019Q4 |
2020Q4 |
Variances % |
Operating revenues |
426 |
217 |
(49)% |
Operating Income |
74 |
(58) |
- |
Equity from Investment |
- |
- |
- |
Net cost of financial debt |
(33) |
(34) |
3% |
Other financial income (loss) |
2 |
2 |
12% |
Income taxes |
20 |
7 |
(64)% |
Net Income / Loss from continuing operations |
63 |
(83) |
- |
Net Income / Loss from discontinued operations |
(37) |
(18) |
53% |
Group net income / (loss) |
26 |
(100) |
- |
Operating Cash Flow |
179 |
26 |
(85)% |
Net Cash Flow |
7 |
(95) |
- |
Net debt |
716 |
1,004 |
40% |
Net debt before lease liabilities |
540 |
849 |
57% |
Capital employed |
2,323 |
2,168 |
(7)% |
Key Segment Figures - Fourth Quarter
2020
Key Segment Figures - QuarterIn million
$ |
2019Q4 |
2020Q4 |
Variances % |
Segment revenue |
396 |
283 |
(29)% |
Segment EBITDAs |
206 |
118 |
(43)% |
Group EBITDAs margin |
52% |
42% |
(103) bps |
Segment operating income |
72 |
(42) |
- |
Opinc margin |
18% |
(15)% |
- |
IFRS 15 adjustment |
2 |
(16) |
- |
IFRS operating income |
74 |
(58) |
- |
Operating Cash Flow |
179 |
26 |
(85)% |
Net Segment Cash Flow |
7 |
(95) |
- |
Supplementary information |
|
|
|
Adjusted segment EBITDAs before NRC |
206 |
122 |
(41)% |
EBITDAs margin |
52% |
43% |
(90) bps |
Adjusted segment operating income before NRC |
72 |
17 |
(77)% |
Opinc margin |
18% |
6% |
(123) bps |
Key Figures – Full Year 2020
Key Figures IFRS - YTDIn million
$ |
2019 |
2020 |
Variances % |
Operating revenues |
1,356 |
886 |
(35)% |
Operating Income |
244 |
(173) |
- |
Equity from Investment |
- |
- |
- |
Net cost of financial debt |
(132) |
(134) |
2% |
Other financial income (loss) |
6 |
(39) |
- |
Income taxes |
9 |
(30) |
- |
Net Income / Loss from continuing operations |
126 |
(376) |
- |
Net Income / Loss from discontinued operations |
(188) |
(63) |
67% |
Group net income / (loss) |
(61) |
(438) |
- |
Operating Cash Flow |
751 |
264 |
(65)% |
Net Cash Flow |
186 |
(247) |
- |
Net debt |
716 |
1,004 |
40% |
Net debt before lease liabilities |
540 |
849 |
57% |
Capital employed |
2,323 |
2,168 |
(7)% |
Key Segment Figures – Full Year
2020
Key Segment Figures - YTDIn million
$ |
2019 |
2020 |
Variances % |
Segment revenue |
1,400 |
955 |
(32)% |
Segment EBITDAs |
721 |
361 |
(50)% |
Group EBITDAs margin |
51% |
38% |
(137) bps |
Segment operating income |
247 |
(164) |
- |
Opinc margin |
18% |
-17% |
(349) bps |
IFRS 15 adjustment |
(4) |
(8) |
- |
IFRS operating income |
244 |
(173) |
- |
Operating Cash Flow |
751 |
264 |
(65)% |
Net Segment Cash Flow |
186 |
(247) |
- |
Supplementary information |
|
|
|
Adjusted segment EBITDAs before NRC |
721 |
402 |
(44)% |
Group EBITDAs margin |
51% |
42% |
(94) bps |
Adjusted segment operating income before NRC |
247 |
48 |
(80)% |
Opinc margin |
18% |
5% |
(130) bps |
Key figures bridge: Segment to IFRS -
Fourth Quarter 2020
P&L items - Q4In million
$ |
Segment figures |
IFRS 15 adjustment |
IFRS figures |
Total Revenue |
283 |
(66) |
217 |
OPINC |
(42) |
(16) |
(58) |
|
|
|
|
Cash Flow Statement items - Q4In million
$ |
Segment figures |
IFRS 15 adjustment |
IFRS figures |
EBITDAs |
118 |
(66) |
52 |
Change in Working Capital & Provisions |
(88) |
66 |
(22) |
Cash Provided by Operations |
26 |
- |
26 |
|
|
|
|
Multi-Client Data Library NBVIn million
$ |
Segment figures |
IFRS 15 adjustment |
IFRS figures |
Opening Balance Sheet, Sept 20 |
345 |
154 |
499 |
Closing Balance Sheet, Dec 20 |
285 |
207 |
492 |
Key figures bridge: Segment to IFRS – Full
Year 2020
P&L items - YTDIn million
$ |
Segment figures |
IFRS 15 adjustment |
IFRS figures |
Total Revenue |
955 |
(69) |
886 |
OPINC |
(164) |
(8) |
(173) |
|
|
|
|
Cash Flow Statement items - YTDIn million
$ |
Segment figures |
IFRS 15 adjustment |
IFRS figures |
EBITDAs |
361 |
(69) |
292 |
Change in Working Capital & Provisions |
(89) |
69 |
(20) |
Cash Provided by Operations |
264 |
- |
264 |
|
|
|
|
Multi-Client Data Library NBVIn million
$ |
Segment figures |
IFRS 15 adjustment |
IFRS figures |
Opening Balance Sheet, Dec 19 |
376 |
155 |
531 |
Closing Balance Sheet, Dec 20 |
285 |
207 |
492 |
Fourth Quarter 2020 Segment Financial
Results
Geology, Geophysics & Reservoir
(GGR)
Geology, Geophysics & Reservoir
(GGR)In million $ |
2019Q4 |
2020Q4 |
Variances, % |
Segment revenue |
275 |
176 |
(36)% |
Geoscience |
106 |
75 |
(29)% |
Multi-Client |
169 |
101 |
(40)% |
Prefunding |
62 |
70 |
13% |
After-Sales |
106 |
31 |
(71)% |
Segment EBITDAs |
189 |
108 |
(43)% |
EBITDAs Margin |
69% |
61% |
(78) bps |
Segment operating income |
64 |
(44) |
- |
OPINC Margin |
23% |
(25)% |
(479) bps |
Equity from investments |
- |
- |
- |
Capital employed (in billion $) |
1.9 |
1.6 |
(10)% |
Supplementary information |
|
|
|
Adjusted segment EBITDAs before NRC |
189 |
111 |
(41)% |
EBITDAs Margin |
69% |
63% |
(58) bps |
Adjusted segment OPINC before NRC |
64 |
15 |
(79)% |
OPINC Margin |
23% |
8% |
(168) bps |
Other Key Metrics |
|
|
|
Multi-Client cash capex ($m) |
(32) |
(41) |
(26)% |
Multi-Client cash prefunding rate (%) |
191% |
171% |
(204) bps |
GGR segment revenue was $176
million, up 18% quarter-on-quarter and down (36)% year-on-year.
- Geoscience revenue was $75 million, down (2)%
quarter-on-quarter and down (29)% year-on-year.
Despite the general
slowdown of the global economy and its negative effect on oil price
and clients’ E&P spending, Geoscience production was more
resilient, driven by stable activity for Naitional Oil Companies
and sequential increase in GeoSoftware and Geovation sales.
CGG Geoscience
technology leadership continues to be recognized by major
clients.
- Multi-Client revenue was $101 million, up 38%
quarter-on-quarter and down (40)% year-on-year.
Prefunding revenue of
our multi-client projects was $70 million, up 78%
quarter-on-quarter and up 13% year-on-year.
We had one marine
streamer multi-client program offshore Brazil and several
reprocessing and reimaging multi-clients surveys this
quarter.Multi-client cash capex was $(41)m and prefunding rate was
high at 171%.
Multi-client
after-sales were at $31 million this quarter primarily driven by
Brazil, down (8)% quarter-on-quarter and down (71)%
year-on-year.
The segment library
Net Book Value was $285 million ($492 million after IFRS 15
adjustments) at the end of 2020, split 84% offshore and 16%
onshore.
GGR segment EBITDAs was $108
million, a 61% margin.
GGR Adjusted segment EBITDAs
was $111 million, a 63% margin before $(4) million of severance
costs.
GGR segment operating income
was $(44) million.
GGR Adjusted segment operating
income was $15 million, a 8% margin before $(59) million
of non-recurring charges including mainly $(29)m Multi-client
library impairments mainly in Africa and Ireland.
GGR capital employed was stable
at $1.6 billion at the end of 2020.
Equipment
EquipmentIn million $ |
2019Q4 |
2020Q4 |
Variances, % |
Segment revenue |
123 |
108 |
(13)% |
Land |
87 |
87 |
(0)% |
Marine |
23 |
13 |
(43)% |
Downhole gauges |
9 |
3 |
(68)% |
Non Oil & Gas |
4 |
5 |
19% |
Segment EBITDAs |
23 |
14 |
(41)% |
EBITDAs margin |
19% |
13% |
(60) bps |
Segment operating income |
16 |
6 |
(63)% |
OPINC Margin |
13% |
5% |
(75) bps |
|
|
|
|
Capital employed (in billion $) |
0.5 |
0.6 |
22% |
Supplementary information |
|
|
|
Adjusted segment EBITDAs before NRC |
23 |
14 |
(40)% |
EBITDAs margin |
19% |
13% |
(58) bps |
Adjusted segment OPINC before NRC |
16 |
6 |
(62)% |
OPINC Margin |
13% |
6% |
(73) bps |
Equipment segment revenue was $108 million, up
114% quarter-on-quarter and down (13)% year-on-year. External sales
were $108 million.
- Land equipment sales represented 81% of total sales, as we
delivered in Q4 over 100,000 channels worldwide. Sercel also
delivered WiNG land node systems in Latin America.
- Marine equipment sales represented 12% of total sales driven by
spares sections sales of Sentinel streamers to its installed
customers base.
- Downhole equipment sales were $3 million and sales from non Oil
& Gas equipment were $5 million
Equipment segment EBITDAs was
$14 million.
Equipment segment operating
income was $6 million.
Equipment capital employed was
up at $0.6 billion at the end of 2020.
Fourth Quarter 2020 Financial Results
Consolidated Income StatementsIn million
$ |
2019Q4 |
2020Q4 |
Variances % |
Exchange rate euro/dollar |
1.10 |
1.18 |
7% |
Segment revenue |
396 |
283 |
(29)% |
GGR |
275 |
176 |
(36)% |
Equipment |
123 |
108 |
(12)% |
Elim & Other |
(2) |
(1) |
36% |
Segment Gross Margin |
109 |
46 |
(58)% |
Segment EBITDAs |
206 |
118 |
(43)% |
GGR |
189 |
111 |
(41)% |
Equipment |
23 |
14 |
(40)% |
Corporate |
(6) |
(4) |
38% |
Elim & Other |
- |
- |
- |
Severance costs |
- |
(4) |
- |
Segment operating income |
72 |
(42) |
- |
GGR |
64 |
15 |
(77)% |
Equipment |
16 |
6 |
(62)% |
Corporate |
(7) |
(4) |
37% |
Elim & Other |
- |
- |
- |
Non recurring charges |
- |
(59) |
- |
IFRS 15 adjustment |
2 |
(16) |
- |
IFRS operating income |
74 |
(58) |
- |
Equity from investments |
- |
- |
- |
Net cost of financial debt |
(33) |
(34) |
(3)% |
Other financial income (loss) |
2 |
5 |
- |
Income taxes |
20 |
7 |
(64)% |
NRC (Tax & OFI) |
- |
(3) |
- |
Net income / (loss) from continuing
operations |
63 |
(83) |
- |
Net income / (loss) from discontinued operations |
(37) |
(18) |
53% |
IFRS net income / (loss) |
26 |
(100) |
- |
Shareholder's net income / (loss) |
25 |
(102) |
- |
Basic Earnings per share in $ |
0.04 |
(0.14) |
- |
Basic Earnings per share in € |
0.03 |
(0.12) |
- |
Segment revenue was $283
million, up 42% quarter-on-quarter and down (29)% year-on-year. The
respective contributions from the Group’s businesses were 27% from
Geoscience, 35% from Multi-Client (62% for the GGR segment) and 38%
from Equipment.
Segment EBITDAs was $118
million and Adjusted*
segment EBITDAs was $122 million
before $(4) million of severance costs, up 51% sequentially and
down (41)% year-on-year, a 43% margin.
Segment operating income was $(42)
million and Adjusted* segment operating
income was $17 million before $(59)
million of non-recurring charges, which included $(29)m of
Multi-client library impairments.
Global economic crisis, triggered by Covid-19
pandemic, and unprecedented drop in oil price and E&P spending
lead CGG to launch cost reduction actions, which resulted in new
severance costs and recognize other non-recurring charges.
$(61) million of non-recurring
charges were booked during the fourth quarter of 2020:
$(59) million at the operating level:
- $(4) million of severance costs
- $(29) million of non-cash Multi-client library impairments
mainly in Africa and Ireland
- $(10) million of asset impairment
- $(15) million of non-cash fair value remeasurement of assets
available for sale
$(3) million of non-cash remeasurement of other
financial assets and liabilities
Non-recurring charges (in m$) |
Q4 2020 |
Operational costs provisions |
(4) |
Multi-client library Impairment |
(29) |
Asset impairment |
(10) |
Fair value remeasurement of assets available for sale |
(15) |
|
|
Other financial items (OFI) adjustements |
(3) |
Total |
(61) |
IFRS 15 adjustment at operating
income level was $(16) million and IFRS operating
income, after IFRS 15 adjustment, was $(58) million.
Cost of financial debt was
$(34) million. The total amount of interest paid during the quarter
was $(34) million.
Other Financial Items were $2
million including $(3) million of non-recurring charges.
Taxes were at $7 million.
Net loss from continuing
operations was $(83) million including $(61) million of
non-recurring charges.
Discontinued operations : Correspond to the former
Contractual Data Acquisition and Non-Operated Resources segments.
Main aggregates are as follows:- Q4 revenue from
discontinued operations was $17 million.- Net loss
from discontinued operations was $(18) million this
quarter, including $(23)m non recurring charges related to the 2021
Plan- Net Cash flow from discontinued operations
was $(2) million before CGG 2021 Plan |
Group net loss was $(100)
million including $(84) million of non-recurring charges; $(61)
million of non-recurring charges on continuing operations and
$(23)m of non-recurring charges on discontinued operations.
After minority interests, Group net loss
attributable to CGG shareholders was
$(102) million/ €(86) million.
Fourth Quarter 2020 Cash Flow
Cash Flow itemsIn million $ |
2019Q4 |
2020Q4 |
Variances % |
Segment Operating Cash Flow |
179 |
26 |
(85)% |
CAPEX |
(55) |
(55) |
- |
Industrial |
(15) |
(5) |
64% |
R&D |
(8) |
(9) |
(10)% |
Multi-Client (Cash) |
(32) |
(41) |
(26)% |
Marine MC |
(21) |
(40) |
(88)% |
Land MC |
(11) |
(1) |
94% |
Proceeds from disposals of assets |
- |
- |
- |
Segment Free Cash Flow |
124 |
(29) |
- |
Lease repayments |
(16) |
(12) |
24% |
Paid Cost of debt |
(33) |
(34) |
(2)% |
CGG 2021 Plan |
(71) |
(18) |
75% |
Free cash flow from discontinued operations |
3 |
(2) |
- |
Net Cash flow |
7 |
(95) |
- |
Financing cash flow |
(1) |
0 |
100% |
Forex and other |
9 |
16 |
75% |
Net increase/(decrease) in cash |
15 |
(79) |
- |
Supplementary information |
|
|
|
Change in working capital and provisions, included in
Segment Operating Cash Flow |
(20) |
(88) |
- |
From severance cash costs |
- |
(3) |
- |
Segment Free Cash Flow before severance cash
costs |
124 |
(26) |
(121)% |
Total capex was $(55) million:
- Industrial capex was $(5) million,
- Research & Development capex was $(9)
million,
- Multi-client cash
capex was $(41) million
Segment Free Cash Flow was $(29)
million, including $(88) million negative change in
working capital and $(3)m of non-recurring severance cash
costs.
After $(12) million lease repayments, $(34)
million paid cost of debt, $(18) million 2021 plan cash costs and
$(2) million free cash flow from discontinued operations,
Net Cash Flow was $(95) million.
Full Year 2020 Financial
Results
Consolidated Income StatementsIn million
$ |
2019 |
2020 |
Variances % |
Exchange rate euro/dollar |
1.12 |
1.14 |
1% |
Segment revenue |
1,400 |
955 |
(32)% |
GGR |
960 |
668 |
(30)% |
Equipment |
452 |
291 |
(36)% |
Elim & Other |
(11) |
(4) |
69% |
Segment Gross Margin |
393 |
169 |
(57)% |
Segment EBITDAs |
721 |
361 |
(50)% |
GGR |
652 |
401 |
(39)% |
Equipment |
97 |
23 |
(77)% |
Corporate |
(28) |
(21) |
23% |
Elim & Other |
- |
- |
100% |
Severance costs |
- |
(42) |
- |
Segment operating income |
247 |
(164) |
- |
GGR |
211 |
81 |
(62)% |
Equipment |
67 |
(9) |
(114)% |
Corporate |
(30) |
(23) |
22% |
Elim & Other |
- |
- |
- |
Non-recurring charges |
- |
(213) |
- |
IFRS 15 adjustment |
(4) |
(8) |
(123)% |
IFRS operating income |
244 |
(173) |
(171)% |
Equity from investments |
- |
- |
- |
Net cost of financial debt |
(132) |
(134) |
(2)% |
Other financial income (loss) |
6 |
8 |
38% |
Income taxes |
9 |
(21) |
- |
NRC (Tax & OFI) |
- |
(56) |
- |
Net income / (loss) from continuing
operations |
126 |
(376) |
- |
Net income / (loss) from discontinued operations |
(188) |
(63) |
67% |
IFRS net income / (loss) |
(61) |
(438) |
- |
Shareholder's net income / (loss) |
(69) |
(442) |
- |
Basic Earnings per share in $ |
(0.10) |
(0.62) |
- |
Basic Earnings per share in € |
(0.09) |
(0.55) |
- |
Segment revenue was $955
million, down (32)% compared to last year. The respective
contributions from the Group’s businesses were 34% from Geoscience,
36% from Multi-Client (70% for the GGR segment) and 30% from
Equipment.
GGR segment revenue was $668
million, down (30)% year-on-year
- Geoscience revenue was $328 million, down
(15)% year-on-year and more resilient mainly due to entering the
year with solid backlog.
- Multi-Client sales were $340 million, down
(41)% year-on-year.
-
Prefunding revenue was $213 million, down (3)% year-on-year.
Multi-Client cash capex was $(239) million, up 29% year-on-year,
and cash prefunding rate was 89%.
-
After-sales were $127 million, down (64)% compared to 2019, which
included large one-off transfer fees in Q3 2019.
Equipment revenue was $287
million, down (35)% year-on-year with a reduction in equipment
market triggered by the Covid-19 pandemic and the drop in oil
price.
Segment EBITDAs was $361
million and Adjusted segment EBITDAs was $402
million, before $(42) million of severance costs, down (44)%
year-on-year, a 42% margin.
GGR adjusted EBITDA was $401 million, a 60%
margin. Equipment adjusted EBITDA was $23 million, a 8% margin.
Segment operating income was
$(164) million and Adjusted segment operating
income, was $48 million, before $(213) million of
non-recurring charges at the operating level.
Global economic crisis, triggered by Covid-19
pandemic and unprecedented drop in oil price and E&P spending
lead CGG to launch cost reduction actions, which resulted in new
severance costs and recognize other non-recurring charges.
$(269) million of
non-recurring charges were booked in 2020:
$(213) million at the operating level:
- $(42) million
severance cash costs related to headcount reductions worldwide
- $(98) million
non-cash impairments of the multi-client library
- $(11) million
non-cash asset impairments
- $(37) million
non-cash fair value remeasurement of GeoSoftware business available
for sale
- $(24) million
non-cash goodwill impairment related to GeoConsulting business
mainly focused on exploration and appraisal
$(56) million of Other Financial Assets and
Deferred Tax Assets impairments:
- $(48) million non-cash
remeasurements of other financial assets and liabilities mainly
related to data acquisition exit
- $(9) million non-cash impairments
of Deferred Tax Assets
Non-recurring charges (in m$) |
2020 |
Operational costs provisions |
(42) |
Multi-client library Impairment |
(98) |
Asset impairment |
(11) |
Fair value remeasurement of assets available for sale |
(37) |
Goodwill impairment |
(24) |
|
|
Other Financial Items (OFI) adjustment |
(48) |
Deferred Tax Assets impairment |
(9) |
Total |
(269) |
IFRS 15 adjustment at operating
income level was $(8) million and IFRS operating
income, after IFRS 15 adjustment, was $(173) million.
Cost of financial debt was
$(134) million. The total amount of interest paid in 2020 was $(80)
million.
Other Financial Items were
$(39) million, including $(48) million of non-recurring charges
related to remeasurement of fair value of other financial assets
and liabilities.
Taxes were at $(30) million
including $(9) million non-cash impairments of Deferred Tax
Assets.
Net loss from continuing
operations was $(376) million including $(269) million of
non-recurring charges.
Full Year 2020 Discontinued operationsCorrespond
to the former Contractual Data Acquisition and Non-Operated
Resources segments. Main aggregates are as follows:-
Revenue from discontinued operations was $39
million.- Net loss from discontinued operations
was $(63) million, including $(67)m non recurring charges related
to the 2021 Plan- Net Cash flow from discontinued
operations was $15 million before CGG 2021 Plan. |
Group net loss was $(438)
million including $(336) million of non-recurring charges; $(269)
million of non-recurring charges on continuing operations and
$(67)m of non-recurring charges on discontinued operations.
After minority interests, Group loss
attributable to CGG shareholders was
$(442) million/ €(389) million.
Full Year 2020 Cash Flow
Cash Flow items(in m$) |
2019 |
2020 |
Variances % |
Segment Operating Cash Flow |
751 |
265 |
(65)% |
CAPEX |
(261) |
(303) |
17% |
Industrial |
(43) |
(23) |
(46)% |
R&D |
(32) |
(41) |
26% |
Multi-Client (Cash) |
(186) |
(239) |
29% |
Marine MC |
(153) |
(210) |
38% |
Land MC |
(33) |
(29) |
(12)% |
Proceeds from disposals of assets |
- |
- |
- |
Segment Free Cash Flow |
491 |
(39) |
(108)% |
Lease repayments |
(57) |
(55) |
(3)% |
Paid Cost of debt |
(81) |
(80) |
- |
CGG 2021 Plan |
(136) |
(87) |
(36)% |
Free cash flow from discontinued operations |
(32) |
15 |
147% |
Net Cash flow |
186 |
(247) |
- |
Financing cash flow |
(0) |
(5) |
- |
Forex and other |
(9) |
27 |
- |
Net increase/(decrease) in cash |
176 |
(225) |
- |
Supplementary information |
|
|
|
Change in working capital and provisions, included in
Segment Operating Cash Flow |
58 |
(89) |
- |
From severance cash costs |
- |
(14) |
- |
Segment Free Cash Flow before severance cash
costs |
491 |
(25) |
(105)% |
Capex was $(303) million, up
17% year-on-year:
- Industrial capex was $(23) million, down (46)%
year-on-year,
- Research & Development capex was $(41)
million, up 26% year-on-year,
- Multi-client cash capex was $(239) million, up
29% year-on-year.
Segment Free Cash Flow was at
$(39) million, including negative change in
working capital of $(89) million and $(14) million of severance
cash costs.
After lease repayments of $(55) million, payment
of interest expenses of $(80) million, CGG 2021 Plan cash costs of
$(87) million and positive free cash flow from discontinued
operations of $15 million, Group Net Cash
Flow was $(247) million.
Balance Sheet
Group’s liquidity amounted to
$385 million at the end of December 31, 2020.
Group gross
debt before IFRS 16 was
$1,234 million at the end of December 31, 2020 and
net debt was $849 million.
Group gross
debt after IFRS 16 was
$1,389 million at the end of December 31, 2020 and
net debt was $1,004 million.
Segment leverage ratio of Net debt to
Segment Ebitdas was 2.8x at the end of December 2020.
Q4 & Full Year 2020 Conference
call
An English language analysts’ conference call is
scheduled today at 8:00 am (Paris time) – 7:00 am (London time)
To follow this conference, please access
the live webcast:
From your
computer at: |
www.cgg.com |
A replay of the conference will be available via
webcast on the CGG website at: www.cgg.com.
For analysts, please dial the following numbers
5 to 10 minutes prior to the scheduled start time:
France
call-in: |
+33 (0) 1 70 70
07 81 |
UK
call-in: |
+44(0) 844 4819
752 |
Access
Code: |
2455854 |
About CGG
CGG (www.cgg.com) is a global geoscience
technology leader. Employing around 3,700 people worldwide, CGG
provides a comprehensive range of data, products, services and
solutions that support our clients to more efficiently and
responsibly solve complex natural resource, environmental and
infrastructure challenges. CGG is listed on the Euronext Paris SA
(ISIN: 0013181864).____________________
Contacts
Group
Communications & Investor RelationsChristophe
BarniniTel: + 33 1 64 47 38 11E-Mail:
christophe.barnini@cgg.com |
CONSOLIDATED FINANCIAL
STATEMENTS
December 31, 2020
Consolidated statement of operations
In millions of US$ |
|
Year |
|
2020 |
2019 |
Operating revenues |
|
886.0 |
1,355.9 |
Other income from ordinary activities |
|
0.7 |
0.7 |
Total income from ordinary activities |
|
886.7 |
1,356.6 |
Cost of operations |
|
(725.9) |
(967.0) |
Gross profit |
|
160.8 |
389.6 |
Research and development expenses – net |
|
(18.6) |
(23.6) |
Marketing and selling expenses |
|
(32.5) |
(47.0) |
General and administrative expenses |
|
(67.9) |
(66.2) |
Other revenues (expenses) – net |
|
(214.5) |
(9.3) |
Operating income |
|
(172.7) |
243.5 |
Cost of financial debt – gross |
|
(136.3) |
(135.2) |
Income from cash and cash equivalents |
|
2.2 |
3.5 |
Cost of financial debt – net |
|
(134.1) |
(131.7) |
Other financial income (loss) |
|
(39.4) |
5.6 |
Income (loss) before income taxes and share of income
(loss) from companies accounted for under the equity
method |
|
(346.2) |
117.4 |
Income taxes |
|
(29.5) |
8.9 |
Net income (loss) before share of net income (loss) from
companies accounted for under the equity method |
|
(375.7) |
126.3 |
Net income (loss) from companies accounted for under the equity
method |
|
0.1 |
(0.1) |
Net income (loss) from continuing operations |
|
(375.6) |
126.2 |
Net income (loss) from discontinued operations |
|
(62.5) |
(187.7) |
Consolidated net income (loss) |
|
(438.1) |
(61.5) |
Attributable to: |
|
|
|
Owners of CGG |
$ |
(441.8) |
(69.1) |
Non-controlling interests |
$ |
3.7 |
7.6 |
Weighted average number of shares outstanding |
|
710,739,746 |
709,950,455 |
Weighted average number of shares outstanding adjusted for dilutive
potential ordinary shares |
|
710,739,746 |
711,922,761 |
Net income (loss) per share |
|
|
|
- Base |
$ |
(0.62) |
(0.10) |
- Diluted |
$ |
(0.62) |
(0.10) |
Net income (loss) from continuing operations per
share |
|
|
|
- Base |
$ |
(0.53) |
0.17 |
- Diluted |
$ |
(0.53) |
0.17 |
Net income (loss) from discontinued operations per
share |
|
|
|
- Base |
$ |
(0.09) |
(0.26) |
- Diluted |
$ |
(0.09) |
(0.26) |
|
Consolidated statement of financial position
In millions of US$ |
|
12.31.2020 |
12.31.2019 |
ASSETS |
|
|
|
Cash and cash equivalents |
|
385.4 |
610.5 |
Trade accounts and notes receivable, net |
|
325.0 |
436.0 |
Inventories and work-in-progress, net |
|
237.8 |
200.1 |
Income tax assets |
|
84.6 |
84.9 |
Other current financial assets, net |
|
13.7 |
- |
Other current assets, net |
|
92.0 |
116.7 |
Assets held for sale, net |
|
117.7 |
316.6 |
Total current assets |
|
1,256.2 |
1,764.8 |
Deferred tax assets |
|
10.3 |
19.7 |
Investments and other financial assets, net |
|
13.6 |
27.4 |
Investments in companies accounted for under the equity method |
|
3.6 |
3.0 |
Property plant & equipment, net |
|
268.1 |
300.0 |
Intangible assets, net |
|
639.2 |
690.8 |
Goodwill, net |
|
1,186.5 |
1,206.9 |
Total non-current assets |
|
2,121.3 |
2,247.8 |
TOTAL ASSETS |
|
3,377.5 |
4,012.6 |
LIABILITIES AND EQUITY |
|
|
|
Bank overdrafts |
|
0.2 |
- |
Financial debt – current portion |
|
58.6 |
59.4 |
Trade accounts and notes payable |
|
96.7 |
117.4 |
Accrued payroll costs |
|
106.6 |
156.6 |
Income taxes payable |
|
56.8 |
59.3 |
Advance billings to customers |
|
19.5 |
36.9 |
Provisions – current portion |
|
52.7 |
50.0 |
Other current financial liabilities |
|
34.4 |
- |
Other current liabilities |
|
278.6 |
327.3 |
Liabilities associated with non-current assets held for sale |
|
13.0 |
259.2 |
Total current liabilities |
|
717.1 |
1,066.1 |
Deferred tax liabilities |
|
16.3 |
10.4 |
Provisions – non-current portion |
|
51.8 |
58.1 |
Financial debt – non-current portion |
|
1,330.3 |
1,266.6 |
Other non-current financial liabilities |
|
53.0 |
- |
Other non-current liabilities |
|
44.4 |
4.0 |
Total non-current liabilities |
|
1,495.8 |
1,339.1 |
Common stock (a) |
|
8.7 |
8.7 |
Additional paid-in capital |
|
1,687.1 |
3,184.7 |
Retained earnings |
|
(480.6) |
(1,531.1) |
Other Reserves |
|
(37.3) |
(23.5) |
Treasury shares |
|
(20.1) |
(20.1) |
Cumulative income and expense recognized directly in equity |
|
(0.7) |
(0.7) |
Cumulative translation adjustments |
|
(37.4) |
(56.3) |
Equity attributable to owners of CGG SA |
|
1,119.7 |
1,561.7 |
Non-controlling interests |
|
44.9 |
45.7 |
Total Equity |
|
1,164.6 |
1,607.4 |
TOTAL LIABILITIES AND EQUITY |
|
3,377.5 |
4,012.6 |
(a) Common stock: 1,194,071,863 shares authorized and
711,392,383 shares with a nominal value of €0.01 outstanding
at December 31, 2020 |
Consolidated statement of cash flows
In millions of US$ |
|
Year |
|
2020 |
2019 |
OPERATING ACTIVITIES |
|
|
|
Consolidated net income (loss) |
|
(438.1) |
(61.5) |
Less: Net income (loss) from discontinued operations |
|
62.5 |
187.7 |
Net income (loss) from continuing operations |
|
(375.6) |
126.2 |
Depreciation, amortization and impairment |
|
193.5 |
138.2 |
Impairment and amortization of Multi-Client surveys |
|
284.8 |
308.0 |
Impairment and amortization of Multi-Client surveys,
capitalized |
|
(18.1) |
(18.8) |
Variance on provisions |
|
15.9 |
(10.5) |
Share-based compensation expenses |
|
4.0 |
5.3 |
Net (gain) loss on disposal of fixed and financial assets |
|
0.5 |
1.0 |
Share of (income) loss in companies recognized under equity
method |
|
(0.1) |
0.1 |
Dividends received from companies accounted for under the equity
method |
|
- |
- |
Other non-cash items |
|
39.3 |
(4.3) |
Net cash flow including net cost of financial debt and
income tax |
|
144.2 |
545.2 |
Less: Cost of financial debt |
|
134.1 |
131.7 |
Less: Income tax expense (gain) |
|
29.5 |
(8.9) |
Net cash flow excluding net cost of financial debt and
income tax |
|
307.8 |
668.0 |
Income tax paid |
|
(7.7) |
(30.2) |
Net cash flow before changes in working
capital |
|
300.1 |
637.8 |
Changes in working capital |
|
(35.8) |
113.6 |
- Change in trade accounts and notes receivable |
|
38.4 |
150.0 |
- Change in inventories and work-in-progress |
|
(25.9) |
(3.7) |
- Change in other current assets |
|
(2.8) |
(33.7) |
- Change in trade accounts and notes payable |
|
(1.6) |
7.7 |
- Change in other current liabilities |
|
(43.9) |
(6.7) |
Net cash flow from operating activities |
|
264.3 |
751.4 |
INVESTING ACTIVITIES |
|
|
|
Total capital expenditures (tangible and intangible assets) net of
variation of fixed assets suppliers and excluding Multi-Client
surveys) |
|
(64.1) |
(75.3) |
Investments in Multi-Client surveys, net cash |
|
(239.0) |
(185.7) |
Proceeds from disposals of tangible and intangible assets |
|
0.5 |
0.1 |
Total net proceeds from financial assets |
|
- |
0.1 |
Acquisition of investments, net of cash & cash equivalents
acquired |
|
(0.4) |
- |
Variation in loans granted |
|
- |
- |
Variation in subsidies for capital expenditures |
|
- |
- |
Variation in other non-current financial assets |
|
13.4 |
(0.7) |
Net cash-flow used in investing activities |
|
(289.6) |
(261.5) |
FINANCING ACTIVITIES |
|
|
|
Repayment of long-term debt |
|
(5.2) |
(0.4) |
Total issuance of long-term debt |
|
- |
- |
Lease repayments |
|
(55.5) |
(56.9) |
Change in short-term loans |
|
0.1 |
- |
Financial expenses paid |
|
(80.2) |
(80.5) |
Capital increase: |
|
|
|
- by owners of CGG |
|
- |
- |
- by non-controlling interests in integrated companies |
|
- |
- |
Dividends paid and share capital reimbursements |
|
|
|
- to owners of CGG |
|
- |
- |
- to non-controlling interests of integrated companies |
|
(7.2) |
(3.8) |
Acquisition/disposal of treasury shares |
|
- |
- |
Net cash-flow from (used in) financing
activities |
|
(148.0) |
(141.6) |
Effect of exchange rate changes on cash |
|
20.7 |
(4.3) |
Impact of changes in consolidation scope |
|
|
|
Net cash flows incurred by discontinued
operations |
|
(72.5) |
(167.6) |
Net increase (decrease) in cash and cash
equivalents |
|
(225.1) |
176.4 |
Cash and cash equivalents at beginning of year |
|
610.5 |
434.1 |
Cash and cash equivalents at end of period |
|
385.4 |
610.5 |
|
- CGG - Press Release pdf version