CGGVeritas : 2006 CGG Stand Alone Results
March 08 2007 - 1:00AM
PR Newswire (US)
Revenues of EUR1330 Million, up 53% PARIS, March 8
/PRNewswire-FirstCall/ -- CGGVeritas (ISIN: 0000120164 - NYSE: CGV)
today announced CGG's fourth quarter and full year 2006 unaudited
financial results, the merger with Veritas becoming effective in
2007. 2006 Highlights: - 2006 Group revenues of Euros 1,330 million
(US$ 1,670 million), up 53% in EUR and 54% in US$ compared to 2005.
- Group operating profit of Euros 289 million, a 22% operating
margin compared to Euros 75 million in 2005, an 8% operating
margin. - Geophysical Services revenues of Euros 792 million (US$
991 million), up 43% in EUR and up 44% in US$, and an operating
margin of 19%, not including the contribution from Argas. - Sercel
revenues of Euros 610 million, (US$ 768 million), up 61% in EUR and
63% in US$ and a record operating margin of 28.6%. - 2006 net
profit of Euros 159 million compared to a net loss of Euros 6.8
million in 2005. - When not including the specific charge related
to the convertible bond, the 2006 net profit is Euros 182 million
compared to a net profit of Euros 4.7 million in 2005. - Year end
2006 net debt to equity gearing ratio of 18% Q4 2006 Highlights: -
Fourth quarter 2006 Group revenues of Euros 374 million (US$ 483
million) up 43% in Euros and 55% in US$ compared to the fourth
quarter of 2005. - Group operating profit of Euros 71 million
representing a 19% operating margin compared to Euros 30 million
for the fourth quarter of 2005 ( an 11% operating margin). -
Geophysical Services revenues of Euros 189 million (USD$ 244
million) up 17% in EUR and 28% in US$ compared to the fourth
quarter of 2005 and representing an operating margin of 11% not
including the contribution from Argas. - Sercel revenues of Euros
189 million, (US$ 244 million), up 53% in EUR and up 67% in US$
compared to the fourth quarter of 2005 and representing a record
operating margin of 32%. - Fourth quarter Group net profit of Euros
38 million. Comments and Perspectives: CGGVeritas Chairman &
CEO, Robert BRUNCK, commented: "In 2006, the CGG Group took
advantage of strong demand in geophysics to increase its market
share and its profitability through its renewed and modernized
fleet, the excellent quality of its multi-client library and more
generally its reinforced technological positions in imaging and in
equipment through the successful launch of new Sercel products. The
CGG Group almost quadrupled its operational profit with a record
year for Sercel and strong operational performance of Geophysical
Services. Looking forward in 2007 continued favourable market
conditions provide an excellent environment for the new CGGVeritas
Group to meet our growth, operational performance and debt
reduction objectives." Million Euros Consolidated Statement of
Earnings IFRS 2006 2005 Q4 2006 Q4 2005 Operating revenues 1329.6
869.9 374.0 262.4 Gross margin 441.4 201.8 121.1 66.3 Operating
profit (loss) 289.0 75.1 71.4 30.1 Income (loss) from equity
investments 10.1 13.0 1.2 3.4 Net cost of financial debt (25.4)
(42.3) (6.2) (15.6) Convertible derivate variance (23.0) (11.5)
26.5 Other financial income (loss) (8.8) (14.5) (0.4) (15.8) Income
taxes (83.2) (26.6) (28.3) (8.1) Net Income (loss) 158.7 (6.8) 37.7
20.5 Net income (loss) per common share 8.86 (0.64) 2.08 1.50
diluted Weighted average common shares 17,731 385 12,095 17,925
13,443 diluted 925 150 434 Revenues 2006 and Fourth Quarter 2006:
Revenues 2006: Group revenues at the end of 2006 were Euros 1,329.6
million, (US$ 1,669.7 million) up 53% in Euros and up 54% in US$,
year on year. Revenues for Geophysical Services for 2006 were Euros
792.1 million, (US$ 991.3 million) up 43% in Euros and up 44% in
US$, year on year. Revenues for Sercel at the end of 2006 were at a
record level of Euros 610 million (US$ 768 million), up 61% in EUR
and up 63% in US$ year on year. 2006 Sercel external sales were
Euros 537.5 million (US$ 678.4 million) up 69% in EUR and up 72% in
US$, year on year. Fourth Quarter 2006 per Segment: Group revenues
for the fourth quarter of 2006 were Euros 374 million (US$ 483
million) up 42% in EUR and 55% in US$, compared to the fourth
quarter of 2005. Revenues for Geophysical Services for the fourth
quarter of 2006 were Euros 188.7 million, (US$ 243.9 million), up
17% in EUR and 28% in US$ compared to the fourth quarter of 2005.
Land revenues for the fourth quarter of 2006 were Euros 22.3
million (US$ 28.8 million) down 30% in EUR and 24% in US$ when
compared to the fourth quarter of 2005. During the quarter, for
safety concerns, we stopped work and demobilized a large seismic
crew based on a force majeure event. Offshore revenues for the
fourth quarter of 2006 were Euros 129.1 million (US$ 166.8 million)
up 33% in EUR and 44% in US$ compared to the fourth quarter of
2005. As expected, a high number of transits and port calls
impacted the quarter. Multi-client revenues were of Euros 52.2
million, up 108% compared to the fourth quarter of 2005. The net
book value of the multi-client library at the end of 2006 was of
Euros 72 million. Processing and Reservoir revenues for the fourth
quarter of 2006 were Euros 37.4 million (US$ 48.3 million) up 18 %
in EUR and 28% in US$ compared to same period last year. Total
revenues for Sercel for the fourth quarter of 2006 were at a record
level of Euros 188.5 million (US$ 243.6 million), up 53% in EUR and
67% in US$ compared to the same period last year. External sales
for the fourth quarter of 2006 were Euros 185.2 million (US$ 239.4
million), up 82% in Euros and 98% in US$ compared to the same
period last year. 2006 and Q4 2006 Operating Income: 2006 Operating
Income: The Group operating profit at the end of 2006 were of Euros
289.0 million, a 21.7% operating margin, compared to Euros 75.1
million operating profit at the end of 2005 and representing an
8.6% operating margin. The 2006 operating profit for Geophysical
Services, not including the contribution from Argas of Euros 9.5
million, were Euros 150.3 million compared to a Euros 25.2 million
operating profit in 2005. The operating margin for 2006, when
including Argas, exceeded 20%. The 2006 operating profit for Sercel
were Euros 174.2 million corresponding to a 28.6% operating margin,
compared to a Euros 79.8 million operating profit and a 21%
operating margin in 2005. Fourth quarter 2006 Operating Income per
Sector: Group operating profit for the fourth quarter of 2006 were
Euros 71.4 million, a 19.1% operating margin, compared to Euros
30.1 million operating profit for the fourth quarter of 2005 and an
11.4% operating margin. The operating profit for Geophysical
Services for the fourth quarter of 2006 were Euros 20.5 million, a
11% operating margin, compared to a Euros 11.1 million operating
profit for the fourth quarter of 2005. During the quarter, apart
from the land force majeure event and the numerous expected vessels
transits and dry docks, operations ran smoothly with good
performance in imaging and a sustained level of multi-client
revenues. Operating profit for Sercel for the fourth quarter of
2006 were Euros 60.8 million, a record 32% operating margin,
compared to Euros 30.5 million for the fourth quarter of 2005,
corresponding to a 25% operating margin. During the quarter, demand
remained strong for all types of land and offshore seismic
equipment. Million Euros Segment Information IFRS 2006 2005 Q4 2006
Q4 2005 Operating revenues Services 792.9 552.9 189.0 160.8
Products 610.1 378.8 188.6 122.9 Elimination (73.4) (61.8) (3.6)
(21.2) Total 1329.6 869.9 374.0 262.5 Operating profit (loss)
Services 150.3 25.2 20.5 11.1 Products 174.2 79.8 60.8 30.5
Corporate (35.5) (29.9) (9.9) (11.6) Total 289.0 75.1 71.4 30.0 Net
Result: The 2006 net result was a profit of Euros 158.7 million
including Euros 23.0 million specific financial charges for the
variance on derivative of the convertible bonds compared to a net
loss of Euros 6.8 million in 2005 (including Euros 11.5 million
charge for the variance on derivative of the convertible bonds).
The net result for the fourth quarter of 2006 was a profit of Euros
37.7 million compared to a profit of Euros 20.5 million (including
an exceptional profit of Euros 26.5 million for the variance on
derivative of the convertible bonds) for the same period last year.
Net Result Million Euros IFRS 2006 2005 Q4 2006 Q4 2005 Net income
before variance on derivative of CB 181.7 4.7 37.7 (6.0) Variance
on derivative of the convertible bonds (CB) (23.0) (11.5) -- 26.5
Net income (loss) 158.7 (6.8) 37.7 20.5 Adjusted EBITDA: The
"Adjusted EBITDA" is defined as the EBITDA minus the cost of equity
based compensation Adjusted EBITDA at the end of 2006 was Euros 483
million, representing 36% of the revenues and an increase of 113%
year on year. Adjusted EBITDA for the fourth quarter of 2006 was
Euros 125 million, representing 33% of revenues and a 55% increase
year on year. Million Euros IFRS 2006 2005 Q4 2006 Q4 2005 Adjusted
EBITDA 483.0 221.4 124.7 76.8 Summary of cash-flows: Summary of
cash-flows: Million Euros IFRS 2006 2005 Q4 2006 Q4 2005 Net Cash
before change in working 405.9 204.0 109.9 82.8 capital Net Cash
provided by operating 347.4 182.4 153.1 73.1 activities Total
purchases of tangible and (149.2) (117.1) (17.9) (49.4) intangible
assets Investment in multi-client surveys (61.5) (32.0) (22.6)
(12.8) Balance Sheet items: As the end of 2006, net equity was
Euros 877 million and net financial debt was Euros 153.8 million,
representing a 17.5% net debt to equity. Million Euros IFRS 31/12/
2006 31/12/2005 Shareholders' equity 877.0 698.5 Net financial debt
153.8 297.2 Net debt to equity 17.5% 42.5% Backlog: The backlog as
of March 1st 2007 for CGGVeritas was at a level of US$ 1.610
billion. 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. Contacts Investor Relations: Paris: Christophe Barnini
Tel.: +33-1-64-47-38-10 Houston: Mindy Ingle Tel.: (1)-832-351-8821
Press Contact: Brunswick Tel.: +1-212-333-3810 - Robert BRUNCK,
Chairman and CEO, will comment on the results during a public
presentation at 10:00 am - at Palais Brongniart - Place de la
Bourse (entry in front of Ndegrees40 rue Notre Dame des Victoires)
PARIS 2nd. - A conference call in English is scheduled at 3:00 pm
(Paris time) - 8:00 am (US CT) - 9:00 am (US ET) To join the
conference, please dial five to ten minutes prior to the scheduled
start time: - International call-in +1-706-758-9607 - US call-in
(800)-374-0113 - Replay international +706-645-9291 - access code
9548164 - Replay US (800)-642-1687 - access code 9548164 You will
be asked for the name of the conference: "CGGVeritas 2006 year end
results". - Copies of the presentation will be posted on the
company web site and can be downloaded. The conference call will be
broadcast live on CGGVeritas' website and replay will be available
for 7 days thereafter. About CGGVeritas: CGGVeritas
(http://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 Eurolist of Euronext Paris SA (ISIN:
0000120164) and the New York Stock Exchange (in the form of
American Depositary Shares, NYSE: CGV). DATASOURCE: CGG Veritas
CONTACT: Contacts Investor Relations: Paris: Christophe Barnini
Tel.: +33-1-64-47-38-10 , Houston: Mindy Ingle Tel.:
(1)-832-351-8821 , Press Contact: Brunswick Tel.: +1-212-333-3810
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