CGGVeritas announced its non-audited first quarter 2012 consolidated results. All comparisons are made on a year-on-year basis unless stated otherwise.
Effective January 1, 2012, CGGVeritas changed the presentation currency of its consolidated financial statements from the euro to the U.S. dollar to better reflect the profile of an industry with revenues, costs and cash-flows primarily generated in U.S. dollars.
CGGVeritas CEO, Jean-Georges Malcor commented: “In the first quarter 2012, Group revenue increased year-on-year as Sercel delivered record sales and Services remained stable. Group results improved despite operating marine contracts this quarter which were awarded during the second half of 2011 at historic low prices. Our performance plan is progressing well and bearing fruit as the marine modernization plan reached completion in early April with the Oceanic Champion returning to operations and our vessel production rate was high at 92% this quarter.
Our backlog is significantly increasing, confirming the recovery in demand for the high end seismic equipment and services market, with marine prices strengthening year on year and good visibility for our land crews across the year.
With our strengthening operational performance and reinforced technical differentiation, CGGVeritas should continue its journey of growth in 2012 while benefiting from both the excellent financial performance of Sercel and an expected significant improvement of Services, especially in the second half of the year.”
First Quarter 2012 Results
* Group revenue was $787 million, up 8% year-on-year mainly driven by record high Sercel sales.
* Group operating income was $54 million. Group margin was 7%:
– Sercel margin was high at 33% driven by demand for land and marine high resolution surveys.
– Services margin was negative at 1% mainly due to the continued very low prices in the marine contracts executed this quarter.
* Net income was a loss of $3 million.
* Operational cash flow was $193 million, stable year-on-year.
* After financial costs paid and capital expenditure, including $65 million for the performance upgrade of the Oceanic Champion, free cash flow was negative at $7 million.
* The acquisition of Global Research Company (GRC) on the 18th of January strengthened Sercel’s diversification into high resolution downhole gauges and sensors.
* Backlog strengthened to $1.565 billion at the end of March 2012, up 28% year-on-year
CGGVeritas is a leading international pure-play geophysical company delivering a wide range of technologies, services and equipment through Sercel, to its broad base of customers mainly throughout the global oil and gas industry.
[mappress] Subsea World News Staff, May 10, 2012;