Second quarter 2021 segment revenue update

CGG anticipates Q2 2021 segment revenue at around $158 million.

• Geoscience segment revenue is expected to be around $73 million, 
• Multi-Client segment sales are expected to be around $37 million, as sales slipped into H2 2021 despite commercial interest from the clients,
• Equipment segment sales are expected to be around $48 million. 

Group segment backlog

Group segment backlog as of July 1, 2021 stands at $360 million up 4% compared to $348 million last year.

Full year 2021 revised financial objectives

In the context of strong oil price but delays in spending by our clients, CGG is expecting in 2021 a gradual recovery in Geoscience activity quarter after quarter, around 25% growth in Equipment sales year-on-year, Multi-Client cash capex of around $165 million with over 75% prefunding and lower than originally expected Multi-client after-sales, up year-on-year.

CGG thus anticipates full year 2021 segment revenue to be flat year-on-year and segment EBITDAs to be around $310 million impacted by a slow recovery in multi-client data purchases, mainly by IOCs. 

2021 Net cash flow to remain positive

The planned asset monetization and sale of businesses held for sale are progressing well and on track to close in early Q4. Overall, CGG is expecting to generate positive net cash flow in 2021. 

Commenting on this update, Sophie Zurquiyah, CGG CEO, said:
“In H1 2021 the increase in oil price did not translate yet into recovery of multi-client after-sales to our clients, especially the IOCs. Demand for our technologies remains strong and will benefit our Geoscience and Equipment businesses, as well as our ongoing multi-client programs which are positioned in the most attractive basins. We believe that we are progressively entering a positive cycle with increasing customers’ spending in our markets going forward in the latter part of this year and into 2022.“

KeyFacts Energy Industry Directory: CGG