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.
GMP FirstEnergy ― UK Energy morning research package
06 Dec 16
Transglobe Energy (TGL CN); BUY, C$5.25: Homeward bound… back to Canada | Great Eastern Energy Corporation (GEEC LN) (not covered): Reserves update in India | BP (BP LN) (not covered): Acquiring interest in Tangguh in Indonesia | Exillon Energy (EXI LN) (not covered): Production update in Russia | Genel Energy (GENL LN); SPECULATIVE BUY, £2.60: Receipt of payment for Taq Taq export in Kurdistan | ExxonMobil (XOM US) (not covered): Relinquishing blocks in Kurdistan
16 Jan 17
We take a look at the rankings of the various countries in Africa that have a significant exposure to mining. We take the Transparency International corruption rankings as our starting point and modify these for exceptional geology and for current UK government travel warnings. Ghana, Botswana and Namibia come out as our top three, with Eritrea, Kenya and Zimbabwe at the bottom of our rankings.
19 Jan 17
Aggregated Micro Power* (AMPH): Funding for first peaking power plant project (CORP) | The Mission Marketing Group* (TMMG): Positive trading update (CORP) | Cello (CLL): Increasingly backed by, and leveraging, technology (BUY) | 4imprint (FOUR): Growth backed by strong cash flow continues (BUY) | Allergy Therapeutics (AGY): Positive trading update and market share gains drive upgrades (BUY) | Shanta Gold (SHG): Q4 operating results (BUY) | Sound Energy (SOU): Tendrara extended well test result (BUY) | Revolution Bars (RBG): Price target increase (BUY)
Small Cap Breakfast
17 Jan 17
Global Energy Development (GED.L) — To be renamed Nautilus Marine Services. Schedule 1 from developer and seller of hydrocarbons and related products. Reverse takeover. Raising $10.5m via a convertible. Expected 9 Feb. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January.
Small Cap Breakfast
19 Jan 17
SuperAwesome — The London based specialist in e-compliance is considering an IPO in its home town according to City A.M. Eco (Atlantic) Oil & Gas—TSX-V listed oil and gas exploration has announced its intention to float on AIM. Assets in Guyana and Namibia. Proposed £2m-£3m fundraise. Diversified Gas & Oil—According to LSE website first day of trading on AIM now expected for 30 January