Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CGG SA. We currently have 9 research reports from 1 professional analysts.
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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.
Towards a €350m equity issue; uncertainty on price
07 Dec 15
CGG announced the convening of a combined general shareholders' meeting to let the board decide on a capital increase of up to €350m of ordinary shares with preferential subscription rights for shareholders. Debt refinancing, early tender time results: - Outstanding 2017 bonds (unsecured high yield): c. $126m (c. 93% of the issue) have been tendered for cancellation so far during the exchange offer; - Fugro loan: €84m will be replaced by a secured term loan due in 2019.
30 Nov 16
Abzena (ABZA): Interim results indicate happy customers (BUY) | Horizonte Minerals* (HZM): Fund raise completed (CORP) | SacOil* (SAC): Half-year trading statement (CORP) | Revolution Bars (RBG): New openings (BUY) | Amino Technologies* (AMO): Multi operator FUSION roll out (CORP)
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.
GTL transaction not going ahead
01 Dec 16
Intelligent Energy (IEH) has announced that the deal to acquire the Energy Management Business of GTL will not now be consummated. The move leaves management free to concentrate on driving sales of commercially ready B2B products, which is a key element of its strategy. We adjust our FY17e revenue estimate while leaving our pre-exceptional losses and cash-flow forecasts unchanged.
01 Nov 16
Since our last outlook note, Quadrise has begun to supply MSAR for extended LONO sea trials, paving the way for commercial adoption from calendar H217 onwards. In August it signed a memorandum of understanding with clients in the Kingdom of Saudi Arabia (KSA), which is a key enabler for progressing the production-to-combustion pilot there. In October it completed a placing and open offer raising a total of £5.25m (gross). This should enable it to transition comfortably to the commercial phase on successful completion of the LONO and KSA trials.
24 Nov 16
Quixant* (QXT): Gaming gains (CORP) | SCISYS* (SSY): Bringing good news from Germany (CORP) | Hayward Tyler Group*: Contract wins (CORP) | Sound Energy (SOU): TE-7 flow rate and fund raise (BUY) | Water Intelligence* (WATR): Growth and improving returns in a defensive market (CORP) | Imaginatik* (IMTK): Interim trading update (CORP)