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CGG Announces its Q2 2022 Results

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CGG
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, 2022CGG (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)

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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


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