Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CGG SA. We currently have 10 research reports from 1 professional analysts.
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Talks on debt restructuring
05 Jan 17
Lenders have accepted to disapply the maintenance covenants. CGG wishes to appoint an ‘ad hoc representative’ (mandataire ad hoc, a restructuring framework eligible when a company has not defaulted); this requires the agreement of creditors. Net debt at end-2016 should amount to $2,315m, ($2,304m in Q3), in line with guidance of below $2.4bn.
Evaluating alternatives to address the capital structure
08 Nov 16
Q3 revenue was $264m (-44% yoy), below consensus estimates. The operating income came in at -$39m, missing consensus (at -$21m) and vs. $4m in Q3 15. The net loss was $88m (vs. -$1,074m in Q3 15 with $967m non-recurring), also below consensus (at -$72m). By division: - Equipment: revenue was $54m (-48% yoy; external sales -65%). The operating loss was $10m (vs. a $5m profit in Q3 15) as activity was below breakeven, although the point has been lowered with the transformation plan; - Contractual data acquisition: revenue came in at $38m (-75% yoy; -84% in Marine); the division posted an operating loss of $13m (vs. -$24m in Q3 15); - GGR revenue was $193m (-15% yoy). The operating margin was 10% (vs. 21% in Q3 15). Non-operated resources, i.e. the cold-stacked vessels, cost $17m on EBIT (vs. $23m in Q2). Guidance 2016: - Net debt at <$2.4bn (confirming guidance since March); - Fleet coverage at 95% in Q4 (o/w 40% in MultiClient), 80% in Q1 17 (o/w around 30% to MultiClient); - MultiClient sales 2016 dependent on Q4 after-sales, pre-funding expected >80%.
Data Acquisition breaks even in Q2 but record low Equipment volumes
29 Jul 16
Q2 revenue, at $290m (-39% yoy), was well below consensus estimates, however the EBIT loss was smaller than expected (at $22m vs. $35m of consensus). The net loss was $79m (vs. -$61m in Q2 15), contained vs. consensus (at -$90m). By division: - Equipment: revenue came in at $44m (-58% yoy; external sales -63%), with volumes at an historical low (weak demand both in Land and Marine). The operating loss was $18m (vs. a $7m profit in Q2 15) as activity was below breakeven; - Contractual data acquisition: revenue was at $59m (-51% yoy; -74% in Marine); the business was at breakeven (vs. a $57m loss in Q2 15); - GGR revenue was $196m (-24% yoy), with a +74% qoq recovery in weak MultiClient. The operating margin was 15% (vs. 20% in Q2 15). Non-operated resources, i.e. the cold-stacked vessels, cost $22m on EBIT (vs. $27m in Q1). Guidance 2016: - Net debt at <$2.4bn (confirming the guidance in March and May); - Capex cut: industrial at $75-100m (vs. $100-125m), MultiClient at $300-350m (vs. $325-375m).
Q1 Equipment volumes slump, weak MultiClient; net debt guidance confirmed
03 May 16
Q1 revenue fell to $313m (-45% yoy), well below consensus estimates at $445m. The operating loss was $81m (vs. $18m profit in Q1 15). The net loss was $130m (vs. -$55m in Q1 15). By division: - Equipment: revenue was $73m (-42% yoy), impacted by low volumes. The operating loss was $11m (vs. nil in Q4 15; affected, as in Q4 15, by low volumes and a low-tech product mix); - Contractual data acquisition: revenue came in at $89m (-59% yoy; -66% in Marine); the operating loss was $34m; - GGR revenue was $164m (-31% yoy), with a weak MultiClient (-44% yoy, at $55m). The operating margin fell to 5% (vs. 20% in Q1 15). Non-operated resources, namely the cold-stacked vessels, cost $27m on EBIT. Guidance 2016: - Net debt at <$2.4bn (confirming guidance of March); - Transformation plan cash costs: $200m in 2016 and $100m afterwards; - Capex confirmed: industrial at $100-125m, MultiClient at $325-375m.
Targeting 2016 net debt below $2.4bn
03 Mar 16
Q4 revenue came in at $589m, broadly in line with consensus estimates. The operating income was $21m but the non-recurring items ($187m) brought in a $256m net loss. By division: - Equipment: revenue was $103m (-53% yoy); usually Q4 posts a seasonal rebound which was absent in 2015. The operating income was nil (affected by low volumes and product mix); - Contractual data acquisition: revenue came in at $114m (-45% yoy; -59% in Marine); the operating loss was $53m (due to Marine, while Land & multi-physics broke even); - GGR revenue was $385m (-21% yoy). The operating margin stood at 26%. Non-operated resources, namely the cold-stacked vessels, cost $14m on EBIT. Guidance 2016: - Net debt at <$2.4bn (lower than our estimate, $2.7bn); - Transformation plan cash costs: $200m in 2016 and $100m afterwards; - Capex: industrial at $100-125m, Multi-Client at $325-375m (around our current estimate); - GGR accounting for >60% of revenue, contractual data acquisition for <15%, equipment c. 25% (confirming management's Q3 view).
Capital increase: preferential rights terms
13 Jan 16
Shareholders will receive one preferential subscription right for every share they hold as of the close of trading on 13 January 2016. The subscription price for the new shares has been set at €0.66 per share on the basis of 3 new shares for 1 existing share. The subscription price represents a 71.55% discount to the closing price on 11 January 2016 and a 38.60% discount to the theoretical ex-rights price (TERP). The subscription period for the new shares will run from 14 January 2016 to 27 January 2016 inclusive.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Opuama production restarts
21 Feb 17
Eland has confirmed the successful restart of exports from OML 40 through the new shipping alternative that it has implemented. Sales from the export terminal are expected imminently, re-establishing cash generation for Eland. Cash at YE16 was US$11.1m which has since reduced to US$5.9m, mainly reflecting initial operating expenses for the shipping alternative. While it is early days, Eland has demonstrated its ability to restart exports and production from OML 40 following the shut-down of the Forcados terminal a year ago. Production to date is averaging around 7kbd and we expect that to ramp up as Opuama operational performance improves. At US$55/bbl Brent, we estimate Eland is generating a net cash margin of around US$25/bbl. We reiterate our Buy recommendation and 95p per share Target Price.
Small Cap Breakfast
24 Feb 17
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.
Operating update and shareholder activism
15 Feb 17
December and January have seen the emergence of shareholder activism at Bowleven (BLVN), bringing its strategy and management into greater focus. Its largest shareholder (Crown Ocean Capital, COC) evolved from being a supportive shareholder to voting against a number of resolutions at the December AGM, to recently calling for the widespread removal of the board and a radically different company structure. Operationally, the company reports that a new development concept is under review by the stakeholders in Etinde, where production would be piped to existing gas processing facilities in Equatorial Guinea. Such a solution would (if approved) require significantly less capex and could be brought online relatively quickly vs other solutions (fertiliser, FLNG, gas to power). We leave our valuation largely unchanged, save for a revision to cash holding to reflect the recent operational update. Our new core NAV is 49p/share.