CGG Announces its Q2 2022 Results

CGG

Strong financial performance

Segment revenue at $240m, up 66% proforma y.o.y.

EBITDAs at $126m and positive net income at $16m

Entering a favorable upcycle

PARIS, France – July 28, 2022 – CGG (ISIN: FR0013181864), a global technology and high-performance computing (HPC) leader announced today its second quarter 2022 non-audited results.

Commenting on these results, Sophie Zurquiyah, CGG CEO, said:

“CGG delivered strong performance this quarter mainly driven by higher Earth Data after-sales and sustained Geoscience activity. Market trends, driven by continued underinvestment in exploration and production and intensified by elevated energy security concerns, continue to support our view of a multi-year upcycle with increased spending from all clients, as they progressively refocus on exploration to meet future energy demand. The development of our Beyond the Core businesses continues to make good progress with encouraging commercial wins, successful pilots, and recent acquisition of Geocomp and successful bidding to acquire ION Geophysical Corporation’s software business that are reinforcing and expanding the portfolio of our Sensing and Monitoring business.  In an inflationary market environment, the business case for our high–end technology, which enables higher efficiency for our clients, becomes even stronger, and I am enthusiastic about the opportunities in front of us.”

Q2 2022: A strong quarter for Data, Digital and Energy Transition IFRS figures: revenue at $228m, EBITDAs at $114m, OPINC at $59m Segment revenue at $240m, up 66% proforma* year-on-year and up 57% sequentially Geoscience at $70m, up 16% proforma* year-on-year. Sustained activity worldwide with increased level of commercial bids   Earth Data at $124m, up 3.4 times year-on-year. High level of after-sales at $88m driven by transfer fees and sales in Latin America   Sensing and Monitoring at $46m, down (4)% year-on-year due to shift of deliveries to Q3 2022. Significantly higher activity is anticipated in H2 2022 and in 2023 driven by substantial commercial opportunities for land & marine equipment sales Segment EBITDAs at $126m, a high 52% margin due to favorable revenue mix, and adjusted** segment EBITDAs at $122m Segment operating income at $66m, a 27% margin, and adjusted** segment operating income at $62m Group net income at $16m Net cash-flow at $(56)m including $(42) million change in working capital H1 2022: Significant profitability improvement and positive net cash flow IFRS figures: revenue at $404m, EBITDAs at $175m, OPINC at $70m Segment revenue at $393m, up 14% proforma* year-on-year Segment EBITDAs at $164m, a 42% margin, and adjusted** segment EBITDAs at $161m Segment operating income at $61m, a 15% margin, and adjusted** segment operating income at $58m Group net loss at $(2)m compared to a net loss of $(136)m in H1 2021 Net cash flow at $13m including $48 million change in working capital Balance Sheet at the end of June Liquidity of $417m, including cash liquidity of $317m and $100m of undrawn RCF Net debt before IFRS 16 at $812m as of June 30, 2022 Segment leverage ratio of Net debt to Adjusted** Segment EBITDAs was 2.1x at the end of June 2022, down from 2.7x at the end of March 2022 Post Closing event Sercel, Sensing & Monitoring division of CGG, was selected as the successful bidder for the acquisition of ION Geophysical Corporation’s (“ION”) software business***   * Pro-forma indicators represent supplementary information adjusted for GeoSoftware and Physical Asset Storage and Services businesses sold in 2021. ** Adjusted indicators represent supplementary information adjusted for non-recurring charges triggered by economic downturn. *** Closing subject to approval by bankruptcy court and other customary conditions.

Key Figures - Second Quarter 2022

Key Figures IFRS - Quarter In million $	2021 Q2	2022 Q2	Variances %
Operating revenues	172	228	33%
Operating Income	-	59	-
Equity from Investment	-	-	-
Net cost of financial debt	(33)	(25)	26%
Other financial income (loss)	(4)	(4)	-
Income taxes	(7)	(14)	-
Net Income / Loss from continuing operations	(44)	16	-
Net Income / Loss from discontinued operations	(7)	-	-
Group net income / (loss)	(51)	16	-
Operating Cash Flow	54	76	40%
Net Cash Flow	(56)	(56)	-
Net debt	1,070	909	(15%)
Net debt before lease liabilities	935	812	(13%)
Capital employed	2,104	1,933	(8%)

Key Figures – First half 2022

Key Figures IFRS – First half In million $	2021 H1	2022 H1	Variances %
Operating revenues	380	404	6%
Operating Income	(21)	70	-
Equity from Investment	-	-	-
Net cost of financial debt	(68)	(50)	26%
Other financial income (loss)	(42)	3	-
Income taxes	(10)	(23)	-
Net Income / Loss from continuing operations	(141)	(0)	100%
Net Income / Loss from discontinued operations	5	(2)	-
Group net income / (loss)	(136)	(2)	98%
Operating Cash Flow	159	206	29%
Net Cash Flow	(27)	13	-
Net debt	1,070	909	(15%)
Net debt before lease liabilities	935	812	(13%)
Capital employed	2,104	1,933	(8%)

Key Segment Figures - Second Quarter 2022

Key Segment Figures - Quarter In million $	2021 Q2	2022 Q2	Variances %
Segment revenue	157	240	52%
Segment EBITDAs	42	126	-
Group EBITDAs margin	27%	52%	26 bps
Segment operating income	(7)	66	-
Opinc margin	(4)%	27%	32 bps
IFRS 15 adjustment	6	(7)	-
IFRS operating income	0	59	-
Operating Cash Flow	54	76	40%
Net Segment Cash Flow	(56)	(56)	-
Supplementary information
Adjusted segment EBITDAs before NRC	35	122	-
EBITDAs margin	22%	51%	28 bps
Adjusted segment operating income before NRC	(15)	62	-
Opinc margin	(10)%	26%	36 bps

Key Segment Figures – First half 2022

Key Segment Figures – First half In million $	2021 H1	2022 H1	Variances %
Segment revenue	370	393	6%
Segment EBITDAs	72	164	-
Group EBITDAs margin	19%	42%	22 bps
Segment operating income	(24)	61	-
Opinc margin	(7)%	15%	22 bps
IFRS 15 adjustment	3	9	-
IFRS operating income	(21)	70	-
Operating Cash Flow	159	206	29%
Net Segment Cash Flow	(27)	13	-
Supplementary information
Adjusted segment EBITDAs before NRC	68	161	-
EBITDAs margin	18%	41%	23 bps
Adjusted segment operating income before NRC	(34)	58	-
Opinc margin	(9)%	15%	24 bps

Key figures bridge: Segment to IFRS - Second Quarter 2022

P&L items In million $	Segment figures	IFRS 15 adjustment	IFRS figures
Total Revenue	240	(12)	228
OPINC	66	(7)	59
Cash Flow Statement items In million $	Segment figures	IFRS 15 adjustment	IFRS figures
EBITDAs	126	(12)	114
Change in Working Capital & Provisions	(42)	12	(30)
Cash Provided by Operations	76	-	76
	Segment figures	IFRS 15 adjustment	IFRS figures
Earth Data Data Library NBV In million $	Segment figures	IFRS 15 adjustment	IFRS figures
Opening Balance Sheet , Apr 1st 22	307	100	407
Closing Balance Sheet , Jun 30th 22	334	109	443

Key figures bridge: Segment to IFRS – First half 2022

P&L items In million $	Segment figures	IFRS 15 adjustment	IFRS figures
Total Revenue	393	11	404
OPINC	61	9	70
Cash Flow Statement items In million $	Segment figures	IFRS 15 adjustment	IFRS figures
EBITDAs	164	11	175
Change in Working Capital & Provisions	48	(11)	37
Cash Provided by Operations	206	-	206
	Segment figures	IFRS 15 adjustment	IFRS figures
Earth Data Data Library NBV In million $	Segment figures	IFRS 15 adjustment	IFRS figures
Opening Balance Sheet , Jan 1st 22	283	109	392
Closing Balance Sheet , Jun 30th 22	334	109	443

Second Quarter 2022 Segment Financial Results

Data, Digital & Energy Transition (DDE)

Data, Digital & Energy Transition (DDE) In million $	2021 Q2	2022 Q2	Variances %
Segment revenue	110	194	77%
Geoscience (SIR)	73	70	(4%)
Earth Data	37	124	-
Prefunding	17	36	-
After-Sales	20	88	-
Proforma revenue from activities (GEO)	61	70	16%
Segment EBITDAs	55	135	-
EBITDAs Margin	50%	69%	19 bps
Segment operating income	15	83	-
OPINC Margin	13%	42%	29 bps
Equity from investments	-	-	-
Capital employed (in billion $)	1.6	1.4	(10%)
Supplementary information
Adjusted segment EBITDAs before NRC	49	136	-
EBITDAs Margin	45%	70%	25 bps
Adjusted segment OPINC before NRC	7	84	-
OPINC Margin	6%	43%	37 bps
Other Key Metrics
Earth Data cash capex ($m)	(43)	(75)	72%
Earth Data cash prefunding rate (%)	39%	48%	8 bps

Digital, Data and Energy Transition (DDE) segment revenue was $194 million, up 100% proforma* year-on-year.

• Geoscience (GEO) revenue was $70 million, up 16% proforma* year-on-year.
  
  

Sequentially, Geoscience revenue was softer this quarter due to the timing of projects’ completion. Imaging activity was strong in North America driven by demand for technology for ILX, with Asia still lagging.

Geoscience commercial activity is solid with high level of bid submissions, up 28% year-on-year. Total Geoscience order intake value was up 61% year-on-year during the period of January to June 2022.

Beyond the Core: Interest for our Data Hub and HPC & Cloud offering is increasing as confirmed by the recent award of a signifcant Data Hub contract for a major energy company and the creation of a new HPC & Cloud Solutions business.

• Earth Data (EDA) revenue was $124 million, up 3.4 times year-on-year.
  
  

Earth Data cash capex was $(75) million this quarter, up 72% year-on-year. In Q2, we had two vessels working on our Earth Data program in the Norwegian North Sea and one vessel – offshore Brazil. Prefunding revenue of our Earth Data projects was $36 million and prefunding rate was 48%.

Earth Data after-sales were $88 million this quarter, significantly up year-on-year sustained by sales in Latin America and transfer fees.

The segment library Net Book Value was $334 million ($443 million after IFRS 15 adjustments) at the end of June 2022, split 93% offshore and 7% onshore.

DDE segment EBITDAs was $135 million, a high 69% margin, and DDE adjusted^** segment EBITDAs was $136 million.

DDE segment operating income was $83 million, a 42% margin, and DDE adjusted^** segment operating income was $84 million.

DDE capital employed decreased to $1.4 billion at the end of June 2022.

Sensing & Monitoring

Sensing & Monitoring In million $	2021 Q2	2022 Q2	Variances %
Segment revenue	48	46	(4%)
Land	29	13	(56%)
Marine	12	22	86%
Downhole gauges	4	5	7%
Non Oil & Gas	3	6	-
Segment EBITDAs	(9)	(7)	17%
EBITDAs margin	(18)%	(16)%	2 bps
Segment operating income	(16)	(15)	10%
OPINC Margin	(34)%	(32)%	2 bps
Capital employed (in billion $)	0.5	0.6	5%
Supplementary information
Adjusted segment EBITDAs before NRC	(8)	(7)	11%
EBITDAs margin	(19)%	(15)%	3 bps
Adjusted segment OPINC before NRC	(16)	(14)	12%
OPINC Margin	(34)%	(32)%	3 bps

Sensing & Monitoring (SMO) segment revenue was $46 million, down (4)% year-on-year.

• Land equipment sales represented 28% of total sales, due to impact of Covid-19 related logistics disruptions and associated shift of deliveries to Q3 2022. Some WiNG systems were delivered to Europe and Asia.

• Marine equipment sales represented 49% of total sales driven by significant deliveries of GPR300 OBN nodes. Sercel was awarded a major contract for the supply of a complete Sentinel® streamers set, the first order of streamers since 2014. Sercel was selected as the successful bidder for the acquisition of ION Geophysical Corporation’s (“ION”) software business (Closing subject to approval by bankruptcy court and other customary conditions).

• Downhole equipment sales were $5 million.

• Sales from Beyond the Core businesses were $6 million. Sercel finalized this quarter the acquisition of Geocomp, which is specialized in high-value services and products for geotechnical risk management and infrastructure monitoring.

SMO segment EBITDAs was $(7) million and SMO adjusted^** segment EBITDAs was $(7) million.

SMO segment operating income was $(15) million and SMO adjusted^** segment operating income was $(14) million.

SMO capital employed increased to $0.6 billion at the end of June 2022.

Second Quarter 2022 Financial Results

Consolidated Income Statements In million $	2021 Q2	2022 Q2	Variances %
Exchange rate euro/dollar	1.20	1.08	(10%)
Segment revenue	157	240	52%
DDE	110	194	77%
Sensing & Monitoring	48	46	(4%)
Elim & Other	-	-	-
Segment Gross Margin	9	93	-
Segment EBITDAs	42	126	-
DDE Adjusted**	49	136	-
Sensing & Monitoring Adjusted**	(8)	(7)	11%
Corporate	(3)	(6)	-
Elim & Other	(2)	(1)	46%
Non recurring charges	6	4	(39%)
Segment operating income	(7)	66	-
DDE Adjusted**	7	84	-
Sensing & Monitoring Adjusted**	(16)	(14)	12%
Corporate	(4)	(7)	(59%)
Elim & Other	(2)	(1)	48%
Non recurring charges	8	4	(54%)
IFRS 15 adjustment	6	(7)	-
IFRS operating income	(0)	59	-
Equity from investments	-	-	-
Net cost of financial debt	(33)	(25)	26%
Other financial income (loss)	(4)	(4)	-
Income taxes	(7)	(14)	-
NRC (Tax & OFI)	-	-	-
Net income / (loss) from continuing operations	(44)	16	-
Net income / (loss) from discontinued operations	(7)	-	-
IFRS net income / (loss)	(51)	16	-
Shareholder's net income / (loss)	(50)	16	-
Basic Earnings per share in $	(0.07)	0.02	-
Basic Earnings per share in €	(0.06)	0.02	-

Segment revenue was $240 million, up 66% proforma* year-on-year. The respective contributions from the Group’s businesses were 29% from Geoscience, 52% from Earth Data (81% for the DDE segment) and 19% from Sensing & Monitoring.

Segment EBITDAs was $126 million, up 198% year-on-year, a 52% margin due to the favorable business mix and adjusted^** segment EBITDAs was $122 million.

Segment operating income was $66 million, a 27% margin, and adjusted^** segment operating income was $62 million.

IFRS 15 adjustment at operating income level was $(7) million and IFRS operating income, after IFRS 15 adjustment, was $59 million.

Cost of financial debt was $(25) million. The total amount of interest paid during the quarter was $(47) million.

Other financial items were at $(4) million.

Taxes were at $(14) million.

Net income from continuing operations was $16 million.

CGG returned to net profit this quarter with net income at $16 million.

After minority interests, Group net income attributable to CGG shareholders was $ 16 million/ €15 million.

Second Quarter 2022 Cash Flow

Cash Flow items In million $	2021 Q2	2022 Q2	Variances %
Segment Operating Cash Flow	54	76	40%
CAPEX	(57)	(85)	49%
Industrial	(6)	(4)	(22%)
R&D	(8)	(5)	33%
Earth Data (Cash)	(43)	(75)	72%
Marine Offshore	(43)	(75)	73%
Land Onshore	-	-	-
Proceeds from disposals of assets	-	18	-
Segment Free Cash Flow	(3)	9	-
Lease repayments	(15)	(12)	19%
Paid Cost of debt	(30)	(47)	(59%)
CGG 2021 Plan	(8)	(5)	39%
Free cash flow from discontinued operations	-	(1)	-
Net Cash flow	(56)	(56)	-
Financing cash flow	(67)	2	-
Forex and other	1	(17)	-
Net increase/(decrease) in cash	(122)	(71)	41%
Supplementary information
Change in working capital and provisions, included in Segment Operating Cash Flow	14	(42)	-

Segment operating cash flow was $76m million, up 40%, including $(42) million negative change in working capital & provisions.

Total capex was $(85) million:

• Industrial capex was $(4) million,

• Research & Development capex was $(5) million,

• Earth Data cash capex was $(75) million.
  
  

Segment free cash flow was $9 million.

After $(12) million lease repayments, $(47) million paid cost of debt, $(5)million CGG 2021 Plan cash costs, $34 million proceeds from disposal of Galileo Headquarter building, $(16)m of Geocomp acquisition, and $(1) million free cash flow from discontinued operations, the net cash flow was $(56) million.

First Half 2022 Financial Results

Consolidated Income Statements In million $	YTD June 2021	YTD June 2022	Variances %
Exchange rate euro/dollar	1.21	1.10	(9%)
Segment revenue	370	393	6%
DDE	210	314	49%
Sensing & Monitoring	161	79	(51%)
Elim & Other	(1)	-	-
Segment Gross Margin	19	116	-
Segment EBITDAs	72	164	-
DDE Adjusted**	80	194	-
Sensing & Monitoring Adjusted**	7	(19)	-
Corporate	(9)	(11)	(20%)
Elim & Other	(10)	(2)	76%
Non recurring charges	3	3	(10%)
Segment operating income	(24)	61	-
DDE Adjusted**	(4)	107	-
Sensing & Monitoring Adjusted**	(9)	(34)	-
Corporate	(11)	(12)	(12%)
Elim & Other	(11)	(3)	76%
Non recurring charges	10	3	(70%)
IFRS 15 adjustment	3	9	-
IFRS operating income	(21)	70	-
Equity from investments	-	-	-
Net cost of financial debt	(68)	(50)	26%
Other financial income (loss)	(42)	3	-
Income taxes	(10)	(23)	-
NRC (Tax & OFI)	-	-	-
Net income / (loss) from continuing operations	(141)	(0)	-
Net income / (loss) from discontinued operations	5	(2)	-
IFRS net income / (loss)	(136)	(2)	98%
Shareholder's net income / (loss)	(137)	(2)	99%
Basic Earnings per share in $	(0.19)	0.00	-
Basic Earnings per share in €	(0.16)	0.00	-

Segment revenue was $393 million, up 14% proforma* compared to H1 2021. The respective contributions from the Group’s businesses were 37% from Geoscience, 43% from Earth Data (80% for the DDE segment) and 20% from Sensing & Monitoring.

DDE segment revenue was $314 million, up 68% proforma* year-on-year.

Geoscience revenue was $146 million, up 26% proforma* year-on-year.

Earth Data sales reached $168 million, up 137% year-on-year. Prefunding revenue was $50 million, up 55% year-on-year. Earth Data cash capex was $(108) million, up 47% year-on-year. Cash prefunding rate at the end of June was 46%.
After-sales were $118 million, up 205%.

SMO segment revenue was $79 million, down (51)% year-on-year.

Segment EBITDAs was $164 million, up 130% year-on-year, a high 42% margin. DDE EBITDA margin was high at 61% and Sensing & Monitoring EBITDA margin was negative. Adjusted^** segment EBITDAs was $161 million.

Segment operating income was $61 million, a 15% margin, and adjusted^** segment operating income was $58 million.

IFRS 15 adjustment at operating income level was $9 million and IFRS operating income, after IFRS 15 adjustment, was $70 million.

Cost of financial debt was $(50) million. The total amount of interest paid during H1 was $(47) million.

Other financial items were $3 million.

Taxes were at $(23) million.

Net income from continuing operations was $0 million.

Group net loss was $(2) million.

After minority interests, H1 2022 Group net income attributable to CGG’s shareholders was $0 million / €0 million.

Cash Flow

Cash Flow items In million $	YTD June 2021	YTD June 2022	Variances %
Segment Operating Cash Flow	159	206	29%
CAPEX	(99)	(127)	28%
Industrial	(9)	(9)	(5%)
R&D	(16)	(11)	(35%)
Earth Data (Cash)	(74)	(108)	47%
Marine Offshore	(73)	(107)	47%
Land Onshore	(1)	(1)	(5%)
Proceeds from disposals of assets	(3)	17	-
Segment Free Cash Flow	57	95	66%
Lease repayments	(29)	(25)	15%
Paid Cost of debt	(36)	(47)	(29%)
CGG 2021 Plan	(19)	(12)	39%
Free cash flow from discontinued operations	-	1	-
Net Cash flow	(27)	13	-
Financing cash flow	(67)	2	-
Forex and other	(6)	(17)	-
Net increase/(decrease) in cash	(100)	(2)	98%
Supplementary information
Change in working capital and provisions, included in Segment Operating Cash Flow	93	48	(48%)

Segment operating cash flow was $206 million up 29%, including $48 million positive change in working capital & provisions.

Capex was $(127) million, up 28% year-on-year:

Industrial capex was $(9) million, stable year-on-year,

Research & development capex was $(11) million, down (35)% year-on-year,

Earth Data cash capex was $(108) million, up 47% year-on-year.

Segment free cash flow was $95 million, up 66% year-on-year.

After the payment of interest expenses of $(47) million, lease repayments of $(25) millionand $(12) millon of CGG Plan 2021, Group net cash flow was $13 million, compared to $(27) million for the first half of 2021.

Balance Sheet 

Group’s liquidity amounted to $317 million at the end of June 30, 2022. Cash liquidity including $100m undrawn RCF amounted to $417 million.

Group gross debt before IFRS 16 was $1,129 million and net debt was $812 million at the end of June 30, 2022.

Group gross debt after IFRS 16 was $1,226 million and net debt was $909 million at the end of June 30, 2022.

Segment leverage ratio of Net debt to Adjusted^** Segment EBITDAs was 2.1x at the end of June 2022.

^* Pro-forma indicators represent supplementary information adjusted for GeoSoftware and Physical Asset Storage and Services businesses sold in 2021.

^** Adjusted indicators represent supplementary information adjusted for non-recurring charges triggered by economic downturn.

^*** Closing subject to approval by bankruptcy court and other customary conditions.

Q2 2022 Conference call

An English language analysts conference call is scheduled the same day at 6.30 pm (CET)

Please note that we have switched to a new service provider for conference calls.

Participants should from now on register for the call here to receive a dial-in number and code or participate in the live webcast from here.

The press release and the presentation are made available on our website www.cgg.com at 5:45 pm (CET)

A replay of the conference call will be made available the day after for a period of 12 months in audio format on the Company's website www.cgg.com.

About CGG

CGG (www.cgg.com) is a global technology and HPC leader that provides data, products, services and solutions in Earth science, data science, sensing and monitoring. Our unique portfolio supports our clients in efficiently and responsibly solving complex digital, energy transition, natural resource, environmental, and infrastructure challenges for a more sustainable future. CGG employs around 3,300 people worldwide and is listed on the Euronext Paris SA (ISIN: 0013181864).

Contacts

Group Communications & Investor Relations Christophe Barnini Tel: + 33 1 64 47 38 11 E-Mail: christophe.barnini@cgg.com

CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2022

Unaudited Interim Consolidated statements of operations

	Six months ended June 30,
(In millions of US$, except per share data)	2022	2021 Restated
Operating revenues	403.6	380.2
Other income from ordinary activities	0.4	0.3
Total income from ordinary activities	404.0	380.5
Cost of operations	(279.1)	(357.7)
Gross profit	124.9	22.8
Research and development expenses - net	(7.7)	(9.9)
Marketing and selling expenses	(14.2)	(14.3)
General and administrative expenses	(34.9)	(30.3)
Other revenues (expenses) - net	1.5	10.7
Operating income (loss)	69.6	(21.0)
Expenses related to financial debt	(51.0)	(68.3)
Income provided by cash and cash equivalents	0.7	0.7
Cost of financial debt, net	(50.3)	(67.6)
Other financial income (loss)	3.2	(42.0)
Income (loss) before incomes taxes	22.5	(130.6)
Income taxes	(22.9)	(10.4)
Net income (loss) from consolidated companies before share of income (loss) in companies accounted for under the equity method	(0.4)	(141.0)
Share of income (loss) in companies accounted for under the equity method	-	0.1
Net income (loss) from continuing operations	(0.4)	(140.9)
Net income (loss) from discontinued operations	(2.0)	4.9
Net income (loss)	(2.4)	(136.0)
Attributable to :
Owners of CGG S.A	(1.8)	(137.1)
Non-controlling interests	(0.6)	1.1
Net income (loss) per share
Basic	-	(0.19)
Diluted	-	(0.19)
Net income (loss) from continuing operations per share
Basic	-	(0.20)
Diluted	-	(0.20)
Net income (loss) from discontinued operations per share
Basic	-	0.01
Diluted	-	0.01

Unaudited Consolidated statements of financial position   (In millions of US$)	June 30, 2022	December 31, 2021
ASSETS
Cash and cash equivalents	316.9	319.2
Trade accounts and notes receivable, net	218.5	350.7
Inventories and work-in-progress, net	241.1	197.3
Income tax assets	64.3	68.7
Other current financial assets, net	0.2	1.7
Other current assets, net	111.4	105.1
Assets held for sale, net	-	-
Total current assets	952.4	1,042.7
Deferred tax assets	13.6	19.6
Other non-current assets, net	3.1	-
Investments and other financial assets, net	20.7	17.8
Investments in companies under the equity method	28.0	28.1
Property, plant and equipment, net	154.6	212.1
Intangible assets, net	564.7	520.7
Goodwill, net	1,089.0	1,083.6
Total non-current assets	1,873.7	1,881.9
TOTAL ASSETS	2,826.1	2,924.6
LIABILITIES AND EQUITY
Bank overdrafts	-	-
Financial debt – current portion	57.2	90.3
Trade accounts and notes payables	91.0	76.4
Accrued payroll costs	83.2	105.4
Income taxes payable	29.6	30.4
Advance billings to customers	28.5	27.1
Provisions — current portion	18.0	18.2
Other current financial liabilities	19.7	19.2
Other current liabilities	203.2	218.2
Liabilities directly associated with the assets classified as held for sale	-	-
Total current liabilities	530.4	585.2
Deferred tax liabilities	22.2	14.1
Provisions — non-current portion	28.0	30.6
Financial debt – non-current portion	1,168.7	1,218.1
Other non-current financial liabilities	27.5	37.4
Other non-current liabilities	25.3	32.8
Total non-current liabilities	1,271.7	1,333.0
Common stock: 1,148,203,130 shares authorized and 712,357,225 shares with a €0.01 nominal value outstanding at June 30, 2022	8.7	8.7
Additional paid-in capital	118.6	464.1
Retained earnings	917.5	570.0
Other Reserves	54.9	5.0
Treasury shares	(20.1)	(20.1)
Cumulative income and expense recognized directly in equity	(3.1)	(0.8)
Cumulative translation adjustment	(92.6)	(64.2)
Equity attributable to owners of CGG S.A.	983.9	962.7
Non-controlling interests	40.1	43.7
Total equity	1,024.0	1,006.4
TOTAL LIABILITIES AND EQUITY	2,826.1	2,924.6

Unaudited Consolidated statements of cash flows

	Six months ended June 30,
(In millions of US$)	2022	2021
OPERATING
Net income (loss)	(2.4)	(136.0)
Less: Net income (loss) from discontinued operations	2.0	(4.9)
Net income (loss) from continuing operations	(0.4)	(140.9)
Depreciation, amortization and impairment	43.9	50.2
Earth Data surveys impairment and amortization	68.1	62.3
Depreciation and amortization capitalized in Earth Data surveys	(7.9)	(8.7)
Variance on provisions	3.1	(31.6)
Share-based compensation expenses	1.3	(1.2)
Net (gain) loss on disposal of fixed and financial assets	(4.8)	(0.1)
Equity (income) loss of investees	—	(0.1)
Dividends received from investments in companies under the equity method	—	—
Other non-cash items	(3.2)	42.0
Net cash-flow including net cost of financial debt and income tax	100.1	(28.1)
Less : net cost of financial debt	50.3	67.6
Less : income tax expense (gain)	22.9	10.4
Net cash-flow excluding net cost of financial debt and income tax	173.3	49.9
Income tax paid	(1.7)	(5.6)
Net cash-flow before changes in working capital	171.6	44.3
Changes in working capital	34.1	115.0
- change in trade accounts and notes receivable	113.7	105.2
- change in inventories and work-in-progress	(56.6)	4.0
- change in other current assets	(4.9)	(2.3)
- change in trade accounts and notes payable	14.9	1.2
- change in other current liabilities	(33.0)	6.9
Net cash-flow provided by operating activities	205.7	159.3
INVESTING
Total capital expenditures (including variation of fixed assets suppliers, excluding Earth Data surveys)	(19.4)	(25.7)
Investment in Earth Data surveys, net cash	(107.7)	(73.5)
Proceeds from disposals of tangible and intangible assets	33.6	—
Total net proceeds from financial assets	0.5	(2.4)
Acquisition of investments, net of cash and cash equivalents acquired	(17.4)	(0.4)
Variation in loans granted	—	—
Variation in subsidies for capital expenditures	(0.1)	—
Variation in other non-current financial assets	(3.2)	1.3
Net cash-flow used in investing activities	(113.7)	(100.7)

	Six months ended June 30,
(In millions of US$)	2022	2021
FINANCING
Repayment of long-term debt	—	(1,227.5)
Total issuance of long-term debt	—	1,160.3
Lease repayments	(25.0)	(29.5)
Change in short-term loans	—	(0.2)
Financial expenses paid	(47.0)	(36.5)
Loan granted	1.7
Net proceeds from capital increase:	0.4
— from shareholders	0.4	—
— from non-controlling interests of integrated companies	—	—
Dividends paid and share capital reimbursements:
— to shareholders	—	—
— to non-controlling interests of integrated companies	(0.9)	(3.6)
Acquisition/disposal from treasury shares	—	—
Net cash-flow provided by (used in) financing activities	(70.8)	(137.0)
Effects of exchange rates on cash	(13.1)	(3.3)
Impact of changes in consolidation scope	—	—
Net cash flows incurred by discontinued operations	(10.4)	(18.5)
Net increase (decrease) in cash and cash equivalents	(2.3)	(100.2)
Cash and cash equivalents at beginning of year	319.2	385.4
Cash and cash equivalents at end of period	316.9	285.2

 

Attachment

• CGG Announces its Q2 2022 Results