CGG flags solid Q4 revenue performance

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CGG says it anticipates fourth quarter revenue for 2018 of around $432 million, up 16% year-on-year and 54% sequentially.

In a financial update the Paris-headquartered company said it expected segment geoscience fourth quarter 2018 revenue of around $108 million, up 16% sequentially.

CGG anticipates segment Multi-Client sales of around $219 million for the fourth quarter of 2018, the highest quarterly segment revenue since Q4 2015. After-sales are expected to be around $114 million. Strong multi-client sales in Latin America, North Sea, West Africa and US land drove multi-client revenue to this high-level despite low Gulf of Mexico sales (including StagSeis™ data), CGG said.

CGG anticipates Sercel fourth quarter 2018 external equipment sales of around $105 million, up 17% sequentially.

The company added that following the presentation of the new CGG strategy at the Capital Market Day on November 7, 2018, the Acquisition business segment will be reported and presented as discontinued operations and assets held for sale in accordance with IFRS 5 as of Q4 2018.

CGG expects 2018 year-end net debt to come down to around $736 million, compared to $769 million at the end of September 2018.

The Group’s liquidity is expected to increase to around $435 million at the end of December 2018, compared to $412 million at the end of September 2018.

Sophie Zurquiyah, CEO, CGG, said: “Our solid Geoscience performance, strong Multi-Client sales and high level of land equipment deliveries by Sercel this quarter confirm clients’ recognition of CGG’s technology leadership and our new strategy focused on the Group’s core businesses.”

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