Frontier Corporate Member CGG Announces its Q2 2023 Results

• Revenue at $289m, up 20% y-o-y

• Ebitda at $104m, a 36% margin related to business mix

• Net Income at $39m

PARIS, France – July 27, 2023 – CGG (ISIN: FR0013081864), a global technology and high-performance computing (HPC) leader, announced its second quarter 2023 non-audited results.

Commenting on these results, Sophie Zurquiyah, CGG CEO, said:

“CGG delivered a good performance in Q2. Our Geoscience business is back to pre-covid levels, driven by technology differentiation and the increasing adoption of advanced acquisition technologies, such as nodes, where clients strongly prefer our leading imaging capabilities. Earth Data remains in line with our full year objectives while Sensing and Monitoring confirmed its expected rebound, with high quarterly revenue.  

“Increased SMO activity in Q2 drove working capital higher, which is expected to translate into significant positive cash-flow in H2.

“The market remains active, with clients strengthening their offshore activity worldwide. This together with our $510m backlog, which is at the highest level since early 2020, gives us confidence in delivering our 2023 targets.”

Q2 2023 key figures: Good performance 

•  IFRS figures: revenue at $339m, EBITDAs at $154m, OPINC at $82m

• Segment revenue at $289m, up 20% year-on-year.

· Geoscience at $80m, up 14% year-on-year driven by increased activity worldwide and technology differentiation.

· Earth Data at $62m, down (5)% year-on-year when adjusted from transfer fees and US land library divestment. After-sales low at $20m due to late sales of ~$20m recognised early July. Prefunding revenue at $42m.

· Sensing and Monitoring at $146m, significantly up 222% year-on-year, a very high quarter thanks to OBN equipment deliveries.

• Segment EBITDAs at $104m and a 36% margin, down (17)% from a very high second quarter 2022, sustained by exceptional transfer fees and a different business mix.

• Segment operating income at $77m, up 17% and a 27% margin

• Group net income at $39m, x 2.4 year-on-year

Q2 2023 Cash Flow & Balance Sheet

• Net cash flow at $(79)m including $(45)m negative change in working capital mainly related to SMO.

• Cash liquidity of $315m as of June 30, 2023, including $95m undrawn RCF.

• Net debt before IFRS 16 at $969m as of June 30, 2023.

Backlog

• At the end of June 2023, the Group’s backlog stands at $510m, up 54% year-on-year.