CGG: CGG Announces its Q3 2021 Results

CGG Announces its Q3 2021 Results

Solid Q3 quarterly performance

Segment Revenue at $270m, up 35% year-on-year

and Segment EBITDAs at $118m, more than doubled year-on-year

PARIS, France – November 3, 2021 – CGG (ISIN: FR0013181864), a world leader in Geoscience, announced today its third quarter 2021 non-audited results.

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

“I am encouraged by our Q3 results and more importantly by the signs of the gradually increasing demand for our core businesses, supported by the strengthening macro-environment. Our differentiated products and services remain fundamental to solving our client’s challenges in complex sub-surface environments, addressing their digitalization needs and reducing their environmental footprint.
Beyond the core, we are developing and commercially progressing a growing portfolio of business opportunities targeting digital geoscience, energy transition, environmental geoscience, and infrastructure monitoring. These opportunities leverage our leadership technology positions in sophisticated algorithms, high performance computing, earth subsurface data base and sensors, all of which provide new growth for the company”.

Q3 2021: A solid performance IFRS figures: revenue at $210m, EBITDAs at $58m, OPINC at $20m Segment revenue at $270m, up 35% year-on-year and up 71% sequentially Geoscience segment revenue at $77m, stable year-on-year and up 5% sequentially. Multi-Client segment sales at $92m, up 26% year-on-year and up 149% sequentially. Equipment segment sales at $101m, up 105% year-on-year and up 113% sequentially. Segment EBITDAs at $118m a 44% margin and Adjusted* Segment EBITDAs at $118m, Segment Operating Income at $33m and Adjusted* Segment Operating Income at $33m Group Net Loss at $(17)m Net Cash Flow at $(34)m. 9 months 2021: A progressive recovery IFRS figures: revenue at $591m, EBITDAs at $146m, OPINC at $5m Segment revenue at $640m, down (5)% year-on-year Segment EBITDAs at $195m a 31% margin due to low H1 activity and Adjusted* Segment EBITDAs at $193m, Segment Operating Income at $14m and Adjusted* Segment Operating Income at $6m Group Net loss at $(148)m divided by two year on year Net Cash Flow at $(61)m before $(40)m of fees related to the refinancing Balance Sheet at the end of September The sale of the physical asset storage business and the sale and lease back of the headquarter building are progressing as planned Liquidity of $340m and cash liquidity of $240m after reducing gross debt by $28m as part of refinancing. Net debt before IFRS 16 at $987m as of September 30, 2021 Post closing event The sale of the GeoSoftware business was completed on October 1st 2021 for a total cash consideration of $95m *Adjusted indicators represent supplementary information adjusted for non-recurring charges triggered by economic downturn.

Key Figures - Third Quarter 2021

Key Figures - Quarter In million $	2020 Q3	2021 Q3	Variances %
Operating revenues	178	210	18%
Operating Income	(43)	20	-
Equity from Investment	-	-	-
Net cost of financial debt	(34)	(27)	(21)%
Other financial income (loss)	(12)	-	-
Income taxes	1	(7)	-
Net Income / Loss from continuing operations	(88)	(14)	(84)%
Net Income / Loss from discontinued operations	(5)	(3)	(44)%
Group net income / (loss)	(93)	(17)	82%
Operating Cash Flow	12	76	-
Net Cash Flow	(92)	(34)	63%
Net debt	910	1,113	22%
Net debt before lease	749	987	32%
Capital employed	2,172	2,140	(1)%

Key Figures – 9 months 2021

Key Figures IFRS – 9 months In million $	2020 9 MONTHS	2021 9 MONTHS	Variances %
Operating revenues	669	591	(12)%
Operating Income	(115)	5	-
Equity from Investment	-	-	-
Net cost of financial debt	(100)	(94)	(5)%
Other financial income (loss)	(42)	(42)	(1)%
Income taxes	(37)	(19)	(48)%
Net Income / Loss from continuing operations	(293)	(150)	(49)%
Net Income / Loss from discontinued operations	(45)	2	-
Group net income / (loss)	(338)	(148)	56%
Operating Cash Flow	238	235	(1)%
Net Cash Flow	(152)	(61)	60%
Net debt	910	1,113	22%
Net debt before lease liabilities	749	987	32%
Capital employed	2,172	2,140	(1)%

Key Segment Figures - Third Quarter 2021

Key Segment Figures - Quarter In million $	2020 Q3	2021 Q3	Variances %
Segment revenue	199	270	35%
Segment EBITDAs	52	118	-
Group EBITDAs margin	26%	44%	18 bps
Segment operating income	(38)	33	-
Opinc margin	(19%)	12%	31 bps
IFRS 15 adjustment	(5)	(13)	-
IFRS operating income	(43)	20	-
Operating Cash Flow	12	76	-
Segment Net Cash Flow	(92)	(34)	63%
Supplementary information
Adjusted segment EBITDAs before NRC	80	118	47%
EBITDAs margin	40%	44%	3 bps
Adjusted segment operating income before NRC	(4)	33	-
Opinc margin	(2%)	12%	14 bps

Key Segment Figures – 9 months 2021

Key Segment Figures – 9 months In million $	2020 9 MONTHS	2021 9 MONTHS	Variances %
Segment revenue	672	640	(5)%
Segment EBITDAs	243	195	(20)%
Group EBITDAs margin	36%	31%	(6) bps
Segment operating income	(122)	14	-
Opinc margin	(18%)	2%	20 bps
IFRS 15 adjustment	7	(9)	-
IFRS operating income	(115)	5	-
Operating Cash Flow	238	235	(1)%
Net Segment Cash Flow	(152)	(61)	60%
Supplementary information
Adjusted segment EBITDAs before NRC	281	193	(31)%
EBITDAs margin	42%	30%	(12) bps
Adjusted segment operating income before NRC	32	6	(82)%
Opinc margin	5%	1%	(4) bps

Key figures bridge: Segment to IFRS - Third Quarter 2021

P&L items In million $	Segment figures	IFRS 15 adjustment	IFRS figures
Total Revenue	270	(59)	210
OPINC	33	(13)	20
Cash Flow Statement items In million $	Segment figures	IFRS 15 adjustment	IFRS figures
EBITDAs	118	(59)	58
Change in Working Capital & Provisions	(48)	59	11
Cash Provided by Operations	76	-	76
Multi-Client Data Library NBV In million $	Segment figures	IFRS 15 adjustment	IFRS figures
Opening Balance Sheet , Jun 21	313	203	516
Closing Balance Sheet , Sep 21	311	245	556

Key figures bridge: Segment to IFRS – 9 months 2021

P&L items In million $	Segment figures	IFRS 15 adjustment	IFRS figures
Total Revenue	640	(49)	591
OPINC	14	(9)	5
Cash Flow Statement items In million $	Segment figures	IFRS 15 adjustment	IFRS figures
EBITDAs	195	(49)	146
Change in Working Capital & Provisions	39	49	88
Cash Provided by Operations	235	-	235
Multi-Client Data Library NBV In million $	Segment figures	IFRS 15 adjustment	IFRS figures
Opening Balance Sheet , Jan 1st 21	285	207	492
Closing Balance Sheet , Sep 30th 21	311	245	556

Third Quarter 2021 Segment Financial Results

Geology, Geophysics & Reservoir (GGR)

Geology, Geophysics & Reservoir (GGR) In million $	2020 Q3	2021 Q3	Variances %
Segment revenue	150	168	12%
Geoscience (SIR)	77	77	-
Multi-Client	73	92	26%
Prefunding	39	59	51%
After-Sales	34	32	(4)%
Segment EBITDAs	56	106	88%
EBITDAs Margin	38%	63%	25 bps
Segment operating income	(25)	30	-
OPINC Margin	(16%)	18%	34 bps
Equity from investments	-	-	-
Capital employed (in billion $)	1.7	1.6	(3)%
Supplementary information
Adjusted segment EBITDAs before NRC	85	107	26%
EBITDAs Margin	57%	63%	6 bps
Adjusted segment OPINC before NRC	10	30	-
OPINC Margin	6%	18%	12 bps
Other Key Metrics
Multi-Client cash capex ($m)	(58)	(57)	1%
Multi-Client cash prefunding rate (%)	68%	103%	36 bps

GGR segment revenue was $168 million, up 12% year-on-year and up 53% sequentially.

• Geoscience revenue was $77 million, stable year-on-year and up 5% sequentially.

Market recovery is accelerating driven by high-end marine & OBN projects for reservoir optimization mainly for IOCs. At the end of September total order intakes were up 10% year-on-year and up more than 50% sequentially. Demand for technology remains strong as projects are mainly dedicated to reservoir optimization and near-field exploration.

Beyond the core new businesses activity is improving with commercial bids related to beyond the core representing more than 10% of total Geoscience bids pending at the end of September.

• Multi-Client revenue was $92 million, up 26% year-on-year and up 149% sequentially.

Multi-client cash capex was $(57) million this quarter, stable year-on-year and dedicated to marine multi-client programs only. In Q3 we had three vessels working on multi-client programs, two on a five-month 3D multi-client program in the Norwegian North Sea and one in Brazil on our on-going Nebula project. We also had 5 reprocessings projects this quarter including a new one in the US Gulf of Mexico.

Prefunding revenue of our multi-client projects was $59 million, up 51% year-on-year and prefunding rate was 103%.

Multi-client after-sales were at $32 million this quarter, down (4)% year-on-year.

The segment library Net Book Value was $311 million ($556 million after IFRS 15 adjustments) at the end of September 2021, split 89% offshore and 11% onshore.

GGR segment EBITDAs was $106 million, a strong 63% margin, and GGR Adjusted^* segment EBITDAs was $107 million.

GGR segment operating income was $30 million.

GGR capital employed decreased to $1.6 billion at the end of September 2021.

Equipment

Equipment In million $	2020 Q3	2021 Q3	Variances %
Segment revenue	50	101	105%
Land	31	40	28%
Marine	15	55	-
Downhole gauges	2	2	28%
Non Oil & Gas	3	4	52%
Segment EBITDAs	(1)	17	-
EBITDAs margin	(1%)	17%	18 bps
Segment operating income	(9)	9	-
OPINC Margin	(18%)	9%	27 bps
Capital employed (in billion $)	0.6	0.6	-
Supplementary information
Adjusted segment EBITDAs before NRC	(0)	17	-
EBITDAs margin	(0%)	17%	17 bps
Adjusted segment OPINC before NRC	(9)	9	-
OPINC margin	(17)%	9%	26 bps
EquipEOment In million $	2020 Q3	2021 Q3	Variances %

Equipment segment revenue was $101 million, up 105% year-on-year and up 113% sequentially.

• Land equipment sales were $40 million, i.e. 40% of total sales, as we delivered in China, Russia, North Africa and India.

• Marine equipment sales were $55 million, representing 54% of total sales, due to scheduled delivery of 18,000 GPR300 nodes.

• Downhole equipment sales were $2 million and sales of non Oil & Gas equipment were $4 million with first commercial project for S-scan railtrack monitoring solution.
  

Equipment segment EBITDAs was $17 million, a 17% margin.

Equipment segment operating income was $9 million, a 9% margin.

Equipment capital employed stabled at $0.6 billion at the end of September 2021.

Third Quarter 2021 Financial Results

Consolidated Income Statements In million $	2020 Q3	2021 Q3	Variances %
Exchange rate euro/dollar	1.17	1.19	2%
Segment revenue	199	270	35%
GGR	150	168	12%
Equipment	50	101	105%
Elim & Other	(1)	(0)	-
Segment Gross Margin	27	63	137%
Segment EBITDAs	52	118	126%
GGR	85	107	26%
Equipment	(0)	17	-
Corporate	(5)	(5)	-
Elim & Other	1	(1)	-
COVID-19 plan	(28)	(0)	-
Segment operating income	(38)	33	186%
GGR	10	30	-
Equipment	(9)	9	-
Corporate	(6)	(5)	10%
Elim & Other	1	(2)	-
Non recurring charges	(34)	(1)	98%
IFRS 15 adjustment	(5)	(13)	-
IFRS operating income	(43)	20	-
Equity from investments	-	-	-
Net cost of financial debt	(34)	(27)	21%
Other financial income (loss)	(4)	(0)	99%
Income taxes	1	(7)	-
NRC (Tax & OFI)	(8)	-	-
Net income / (loss) from continuing operations	(88)	(14)	84%
Net income / (loss) from discontinued operations	(5)	(3)	44%
IFRS net income / (loss)	(93)	(17)	82%
Shareholder's net income / (loss)	(93)	(17)	82%
Basic Earnings per share in $	(0.13)	(0.02)	82%
Basic Earnings per share in €	(0.11)	(0.02)	82%

Segment revenue was $270 million, up 35% year-on-year and up 71% sequentially. The respective contributions from the Group’s businesses were 28% from Geoscience, 34% from Multi-Client (62% for the GGR segment) and 38% from Equipment.

Segment EBITDAs was $118 million, up 126% year-on-year, a solid 44% margin and Adjusted^* segment EBITDAs was $118 million, up 47% year-on-year.

Segment operating income was $33 million up 186% year-on-year, a 12% margin and Adjusted* segment operating income was $33 million.

IFRS 15 adjustment at operating income level was $(13)million and IFRS operating income, after IFRS 15 adjustment, was $20 million.

Cost of financial debt was $(27) million.

Taxes were at $(7) million.

Net loss from continuing operations was $(14) million.

Q3 2021 Discontinued operations : Correspond to the former Contractual Data Acquisition and Non-Operated Resources segments. Main aggregates are as follows: - Revenue from discontinued operations was $0 million. - Net loss from discontinued operations was $(3) million. - Net Cash flow from discontinued operations was $(15) million.

Group net loss was $(17) million.

After minority interests, Group net loss attributable to CGG shareholders was $(17) million/ €(15) million.

Third Quarter 2021 Cash Flow

Cash Flow items In million $	2020 Q3	2021 Q3	Variances %
Segment Operating Cash Flow	12	76	-
CAPEX	(71)	(73)	2%
Industrial	(5)	(8)	47%
R&D	(8)	(7)	(7)%
Multi-Client (Cash)	(58)	(57)	(1)%
Marine MC	(56)	(57)	1%
Land MC	(2)	(0)	(74)%
Proceeds from disposals of assets	(0)	(1)	-
Segment Free Cash Flow	(59)	2	-
Lease repayments	(15)	(14)	(4)%
Paid Cost of debt	(7)	(0)	(96)%
Plan 2021	(19)	(7)	(64)%
Free cash flow from discontinued operations	7	(15)	-
Net Cash flow	(92)	(34)	63%
Financing cash flow	(5)	(2)	(60)%
Forex and other	16	(9)	-
Net increase/(decrease) in cash	(81)	(45)	44%
Supplementary information
Change in working capital and provisions, included in Segment Operating Cash Flow	(37)	(48)	30%
From severance cash costs	(7)	(5)	28%
Segment Free Cash Flow before severance cash costs	(52)	7	113%

Segment Operating Cash Flow was $76 million.

Total capex was $(73) million:

• Industrial capex was $(8) million,

• Research & Development capex was $(7) million,

• Multi-client cash capex was $(57) million
  

Segment Free Cash Flow was $2 million.

Net Cash Flow was $(34) million, after $(14) million lease repayments, $(0) million paid cost of debt, $(7) million 2021 Plan cash costs and $(15) million free cash flow from discontinued operations

9 months 2021 Financial Results

Consolidated Income Statements In million $	YTD September 2020	YTD September 2021	Variances %
Exchange rate euro/dollar	1.12	1.20	7%
Segment revenue	672	640	(5)%
GGR	492	379	(23)%
Equipment	183	262	43%
Elim & Other	(2)	(1)	66%
Segment Gross Margin	124	89	(28)%
Segment EBITDAs	243	195	(20)%
GGR	289	187	(35)%
Equipment	9	25	-
Corporate	(17)	(13)	23%
Elim & Other	(0)	(6)	-
COVID-19 plan	(38)	2	-
Segment operating income	(122)	14	-
GGR	66	26	(60)%
Equipment	(15)	1	-
Corporate	(19)	(16)	18%
Elim & Other	(0)	(6)	-
Non recurring charges	(154)	9	-
IFRS 15 adjustment	7	(9)	-
IFRS operating income	(115)	5	-
Equity from investments	-	-	-
Net cost of financial debt	(100)	(94)	(5)%
Other financial income (loss)	3	(42)	-
Income taxes	(28)	(19)	(32)%
NRC (Tax & OFI)	(53)	-	-
Net income / (loss) from continuing operations	(293)	(150)	49%
Net income / (loss) from discontinued operations	(45)	2	-
IFRS net income / (loss)	(338)	(148)	56%
Shareholder's net income / (loss)	(340)	(150)	56%
Basic Earnings per share in $	(0.48)	(0.21)	56%
Basic Earnings per share in €	(0.43)	(0.21)	56%

Segment revenue for the first 9 months 2021 was $640 million, down (5)% compared to last year. The respective contributions from the Group’s businesses were 34% from Geoscience, 25% from Multi-Client (59% for the GGR segment) and 41% from Equipment.

GGR segment revenue was $379 million, down (23)% year-on-year

• Geoscience revenue was $216 million, down (15)% year-on-year

• Multi-Client sales reached $163 million, down (32)% year-on-year. Prefunding revenue was $92 million, down (36)% year-on-year. Multi-Client cash capex was $(131) million, down (34)% year-on-year. Cash prefunding rate was 70%.
  
  After-sales were $71 million, down (26)%.

Equipment revenue was $262 million, up 43% year-on-year.

Segment EBITDAs was $195 million, down (20)% year-on-year, a 31% margin. GGR EBITDA margin due to low H1 activity. GGR EBITDA margin was 49% and Equipment EBITDA margin was 9%.

Segment operating income was $14 million.

IFRS 15 adjustment at operating income level was $(9) million and IFRS operating income, after IFRS 15 adjustment, was $5 million.

Cost of financial debt was $(94) million. The total amount of interest paid at the end of September was $(37) million.

Other Financial Items were $(42) million, including $(40) million of fees related to the refinancing.

Taxes were at $(19) million.

Net income from continuing operations was $(150) million.

YTD September Discontinued operations : Correspond to the former Contractual Data Acquisition and Non-Operated Resources segments. Main aggregates are as follows: -Revenue from discontinued operations was $19 million. -Net income from discontinued operations was $2 million. -Net Cash flow from discontinued operations was $(14) million.

Group net loss was $(148) million.

After minority interests, Group loss attributable to CGG’s shareholders at the end of September 2021 was $(150) million / €(125) million.

Cash Flow

Cash Flow items In million $	YTD September 2020	YTD September 2021	Variances %
Segment Operating Cash Flow	238	235	(1)%
CAPEX	(248)	(172)	(31)%
Industrial	(18)	(17)	(3)%
R&D	(32)	(24)	(26)%
Multi-Client (Cash)	(198)	(131)	(34)%
Marine MC	(169)	(130)	(23)%
Land MC	(29)	(1)	(95)%
Proceeds from disposals of assets	(0)	(4)	-
Segment Free Cash Flow	(9)	59	-
Lease repayments	(44)	(44)
Paid Cost of debt	(47)	(37)	(21)%
Plan 2021	(69)	(26)	(63)%
Free cash flow from discontinued operations	17	(14)	-
Net Cash flow	(152)	(61)	60%
Financing cash flow	(5)	(69)	-
Forex and other	11	(15)	-
Net increase/(decrease) in cash	(146)	(146)
Supplementary information
Change in working capital and provisions, included in Segment Operating Cash Flow	(1)	39	-
From severance cash costs	(11)	(17)	(53)%
Segment Free Cash Flow before severance cash costs	1	76	-

Segment Operating Cash Flow was $235 million compared to $238 million for the 9 months of 2020, stable year-on-year.

Capex was $(172) million, (31)% decrease year-on-year,

• Industrial capex was $(17) million, (3)% decrease year-on-year,

• Research & Development capex was $(24) million, (26)% decrease year-on-year,

• Multi-client cash capex was $(131) million, (34)% decrease year-on-year.
  

Segment Free Cash Flow was at $59 million compared to $(9) million in 2020.

After the lease repayments of $(44) million, CGG 2021 Plan cash costs of $(26) million, Paid cost of debt of $(37) million and Free cash flow from discontinued operations of $(14) million, Group Net Cash Flow was $(61) million, compared to $(152) million for the 9 months of 2020.

Refinancing impact on cash flow was $(69) million, including $(40) million refinancing fees and call premiums, and $(28) million net reduction in principal.

Balance Sheet

Group’s liquidity amounted to $340 million at the end of September 30, 2021 and cash liquidity of $240m after reducing gross debt by $28m as part of refinancing.

Group gross debt before IFRS 16 was $1,226 million at the end of September 30, 2021 and net debt was $987 million.

Group gross debt after IFRS 16 was $1,353 million at the end of September 30, 2021 and net debt was $1,113 million.

Segment leverage ratio of Net debt to Adjusted segment EBITDAs was 3.5x at the end of September 2021.

Q3 2021 Conference call

• The press release and the slide presentation are available on our website www.cgg.com

• An English language analysts conference call is scheduled today at 6.30 pm (CET)

To follow the conference call, please access the audio webcast from your computer at www.cgg.com

Please dial 5 to 10 minutes prior to the scheduled start time the following numbers:

France call-in:	+33(0) 1 70 70 07 81
UK call-in:	+44(0) 844 4819 752
US call-in:	+1 646 7413 167
Access Code:	104 45 17

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 geoscience technology leader. Employing around 3,700 people worldwide, CGG provides a comprehensive range of data, products, services and solutions that support our clients to more efficiently and responsibly solve complex natural resource, environmental and infrastructure challenges. CGG 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

September 30, 2021

Unaudited Interim Consolidated statements of operations

	Nine months ended September 30,
(In millions of US$, except per share data)	2021	2020
Operating revenues	590.6	668.9
Other income from ordinary activities	0.5	0.5
Total income from ordinary activities	591.1	669.4
Cost of operations	(511.5)	(538.4)
Gross profit	79.6	131.0
Research and development expenses - net	(15.5)	(12.9)
Marketing and selling expenses	(22.3)	(25.2)
General and administrative expenses	(46.2)	(52.9)
Other revenues (expenses) - net	9.6	(154.8)
Operating income (loss)	5.2	(114.8)
Expenses related to financial debt	(95.2)	(101.6)
Income provided by cash and cash equivalents	0.9	1.9
Cost of financial debt, net	(94.3)	(99.7)
Other financial income (loss)	(42.1)	(41.8)
Income (loss) before incomes taxes	(131.2)	(256.3)
Income taxes	(19.0)	(36.8)
Net income (loss) from consolidated companies before share of income (loss) in companies accounted for under the equity method	(150.2)	(293.1)
Share of income (loss) in companies accounted for under the equity method	0.0	0.1
Net income (loss) from continuing operations	(150.2)	(293.0)
Net income (loss) from discontinued operations	2.1	(45.0)
Net income (loss)	(148.1)	(338.0)
Attributable to :
Owners of CGG S.A	(149.8)	(339.6)
Non-controlling interests	1.7	1.6
Net income (loss) per share
Basic	(0.21)	(0.48)
Diluted	(0.21)	(0.48)
Net income (loss) from continuing operations per share
Basic	(0.21)	(0.41)
Diluted	(0.21)	(0.41)
Net income (loss) from discontinued operations per share
Basic	0.00	(0.06)
Diluted	0.00	(0.06)

Unaudited Consolidated statements of financial position

(In millions of US$)	September 30, 2021	December 31, 2020
ASSETS
Cash and cash equivalents	239.7	385.4
Trade accounts and notes receivable, net	273.4	325.0
Inventories and work-in-progress, net	215.6	237.8
Income tax assets	77.5	84.6
Other current financial assets, net	1.7	13.7
Other current assets, net	85.3	92.0
Assets held for sale, net	137.7	117.7
Total current assets	1,030.9	1,256.2
Deferred tax assets	3.0	10.3
Investments and other financial assets, net	15.6	13.6
Investments in companies under the equity method	3.1	3.6
Property, plant and equipment, net	221.2	268.1
Intangible assets, net	691.6	639.2
Goodwill, net	1,188.5	1,186.5
Total non-current assets	2,123.0	2,121.3
TOTAL ASSETS	3,153.9	3,377.5
LIABILITIES AND EQUITY
Bank overdrafts	-	0.2
Financial debt – current portion	87.0	58.6
Trade accounts and notes payables	86.7	96.7
Accrued payroll costs	107.8	106.6
Income taxes payable	34.9	56.8
Advance billings to customers	27.3	19.5
Provisions — current portion	18.7	52.7
Other current financial liabilities	19.1	34.4
Other current liabilities	335.6	278.6
Liabilities directly associated with the assets classified as held for sale	7.8	13.0
Total current liabilities	724.9	717.1
Deferred tax liabilities	18.3	16.3
Provisions — non-current portion	43.9	51.8
Financial debt – non-current portion	1,265.8	1,330.3
Other non-current financial liabilities	38.7	53.0
Other non-current liabilities	35.0	44.4
Total non-current liabilities	1,401.7	1,495.8
Common stock: 1,191,533,002 shares authorized and 711 662 205 shares with a €0.01 nominal value outstanding at September 30, 2021	8.7	8.7
Additional paid-in capital	464.1	1,687.1
Retained earnings	595.2	(480.6)
Other Reserves	(11.1)	(37.3)
Treasury shares	(20.1)	(20.1)
Cumulative income and expense recognized directly in equity	0.2	(0.7)
Cumulative translation adjustment	(54.0)	(37.4)
Equity attributable to owners of CGG S.A.	983.0	1,119.7
Non-controlling interests	44.3	44.9
Total equity	1,027.3	1,164.6
TOTAL LIABILITIES AND EQUITY	3,153.9	3,377.5

Unaudited Consolidated statements of cash flows

	Nine months ended September 30,
(In millions of US$)	2021	2020
OPERATING
Net income (loss)	(148.1)	(338.0)
Less: Net income (loss) from discontinued operations	(2.1)	45.0
Net income (loss) from continuing operations	(150.2)	(293.0)
Depreciation, amortization and impairment	76.9	136.5
Multi-client surveys impairment and amortization	77.5	227.4
Depreciation and amortization capitalized in Multi-client surveys	(12.9)	(13.2)
Variance on provisions	(32.3)	22.5
Share-based compensation expenses	(0.7)	3.9
Net (gain) loss on disposal of fixed and financial assets	(0.3)	—
Equity (income) loss of investees	—	(0.1)
Dividends received from investments in companies under the equity method	—	—
Other non-cash items	42.2	41.8
Net cash-flow including net cost of financial debt and income tax	0.2	125.8
Less: net cost of financial debt	94.3	99.7
Less: income tax expense (gain)	19.0	36.8
Net cash-flow excluding net cost of financial debt and income tax	113.5	262.3
Income tax paid	1.2	(3.4)
Net cash-flow before changes in working capital	114.7	258.9
Changes in working capital	120.5	(20.5)
- change in trade accounts and notes receivable	110.6	70.6
- change in inventories and work-in-progress	12.9	(34.8)
- change in other current assets	(12.2)	(6.1)
- change in trade accounts and notes payable	(6.1)	(14.9)
- change in other current liabilities	15.3	(35.3)
Net cash-flow provided by operating activities	235.2	238.4
INVESTING
Total capital expenditures (including variation of fixed assets suppliers, excluding Multi-client surveys)	(40.9)	(49.8)
Investment in Multi-client surveys, net cash	(131.0)	(198.0)
Proceeds from disposals of tangible and intangible assets	0.2	0.3
Total net proceeds from financial assets	(2.4)	—
Acquisition of investments, net of cash and cash equivalents acquired	(1.9)	(0.4)
Variation in loans granted	—	—
Variation in subsidies for capital expenditures	—	—
Variation in other non-current financial assets	(2.3)	12.0
Net cash-flow used in investing activities	(178.3)	(235.9)

	Nine months ended September 30,
(In millions of US$)	2021	2020
FINANCING
Repayment of long-term debt	(1,227.5)	(5.2)
Total issuance of long-term debt	1,160.0	—
Lease repayments	(43.7)	(43.6)
Change in short-term loans	(0.2)	—
Financial expenses paid	(36.7)	(46.5)
Loans granted	(1.7)
Net proceeds from capital increase:
— from shareholders	—	—
— from non-controlling interests of integrated companies	—	—
Dividends paid and share capital reimbursements:
— to shareholders	—	—
— to non-controlling interests of integrated companies	(3.6)	(7.2)
Acquisition/disposal from treasury shares	—	—
Net cash-flow provided by (used in) financing activities	(153.4)	(102.5)
Effects of exchange rates on cash	(8.0)	6.5
Impact of changes in consolidation scope	—	—
Net cash flows incurred by discontinued operations	(41.2)	(52.5)
Net increase (decrease) in cash and cash equivalents	(145.7)	(146.0)
Cash and cash equivalents at beginning of year	385.4	610.5
Cash and cash equivalents at end of period	239.7	464.5

Attachment

• CGG - Press Release pdf version