CGG: Strong Q4 2021 Financial Performance Q4 2021
03/03/2022 - 11:45 AM
Strong Q4 2021 Financial Performance
Q4 2021 Segment EBITDAs at $154m , a 51% margin
Accelerating New Business Initiatives
2022 revenue expected to increase by around 10%
Beyond the Core new businesses expected
to represent above 20% of revenue in 2025
PARIS, France – March 3, 2022 – CGG (ISIN: FR0013181864), a world leader in Geoscience , announced today its fourth quarter 2021 financial results.
Commenting on these results and beyond the core strategy, Sophie Zurquiyah, CGG CEO, said:
“ CGG delivered solid Q4 and 2021 results in line with expectations, confirming the gradual recovery trends that began earlier in the second half of the year across our businesses. In 2021, CGG extended its leadership and technology differentiation and increased its market share, which puts us in an advantageous position as demand for our products and services continues to increase. We made significant progress towards our carbon neutrality objectives by reducing our scope 1 and scope 2 direct emissions in 2021 to respectively 2 and 43 kt eq.C0 2 . In 2022, we will accelerate investment in our core domains to further expand our differentiation, while delivering a stronger segment EBITDA margin due to the full impact of costs savings, revenue growth and a more favorable business mix. Beyond our core businesses, CGG made substantial progress through 2021, organically growing to over 150 engineers focused on developing and offering a range of new technology and solutions to our traditional and new client base. Today these new businesses represent approximately 5% of Group’s revenue, which provides a solid foundation for accelerated growth. As we continue to transform the CGG business profile into a technology company, we have the ambition to become a global leader in specialized Digital Sciences, Energy Transition technologies and services, and Monitoring & Observation solutions. These Beyond the Core new businesses are expected to generate above 20% of total revenue in 2025.”
Q4 2021: A strong operational & financial performance IFRS figures : revenue at $471m , EBITDAs at $324m , OPINC at $(23)m Segment revenue at $301m 7% year-on-year and up 12% sequentially Geoscience segment revenue at $93m , up 24% year-on-year Multi-Client segment sales at $114m , up 13% year-on-year Equipment segment sales at $94m , down (12)% year-on-year Segment EBITDAs at $154m a 51% margin and Adjusted* Segment EBITDAs at $150m Segment Operating Income / (loss) at $(57)m including $(23)m fair value adjustment of a multi-client survey and $(102)m impairment of the multi-client goodwill. Adjusted* Segment Operating Income at $78m Group Net loss at $(28)m Net Cash Flo w at $81m Full Year 2021: Sound resilience and reinforced market shares IFRS figures : revenue at $1,062m , EBITDAs at $465m , OPINC at $(23)m Segment revenue at $941m Geoscience segment revenue at $309m , down (6)% year-on-year Multi-Client segment sales at $276m , down (19)% year-on-year Equipment segment sales at $357m , up 23% year-on-year Segment EBITDAs at $344m 37% margin and Adjusted* Segment EBITDAs at $337m Segment Operating Income / (loss) at $(49)m and Adjusted* Segment Operating Income at $78m Group Net loss at $(180)m $(437)m last yearNet Cash Flow at $19m $(40)m of refinancing related fees, a significant improvement year-on-year Balance Sheet as of December 31, 2021: Liquidity of $419m ,$319m cash liquidity and $100m of undrawn RCF (Revolving Credit Facility) Net debt after IFRS 16 at $989m Net debt before IFRS 16 at $866m Post closing event Signature of a binding offer for the sale and leaseback of Galileo, the headquarter building located in Massy, France We are monitoring very closely the implications of war in Ukraine with the main objective of supporting our employees and evaluating its economic consequences. In 2021 revenue generated from Russia represented around 4% of CGG Group revenue. 2022: Entering a positive industry cycle In 2021, CGG confirmed the value generated by its technology in traditional energy as clients focused on reservoir optimization and near field exploration. The multi-client strategy, focused on proven and mature producing basins, has confirmed its relevance. In 2022, the E&P sector is entering a positive upcycle with market recovery expected to further accelerate in 2023. Resumption of licensing rounds in core mature basins is expected to further support this acceleration. 2022 Financial Objectives: Accelerating the development of business initiatives In 2022, CGG will continue to invest in core domains leveraging its high-end positioning while also accelerating the development of Beyond the Core (BTC) new businesses to address digital sciences, energy transition monitoring & observation and demand from other industries. In 2022, CGG segment Revenue is expected to increase by around 10% sustained by ~18% GGR growth and stable Equipment. CGG is anticipating a slow first quarter revenue due to lower equipment sales year-on-year. CGG 2022 segment EBITDAs margin is expected to increase to around 39% -40% on full impact of cost savings, revenue growth and favorable business mix. CGG is expanding its hiring program to support the growth of BTC businesses. 2022 Capex will increase to capture the favorable upcycle and accelerate the development of BTC businesses: Multi-Client cash Capex back to around $200m , including new offshore programs in Latin America and the North Sea Industrial & R&D cash investment around $70m , including notably up to 100 petaflops of additional CGG Cloud High Performance Computing (HPC) capacity Beyond the Core businesses expected to represent above 20% of CGG’s revenue in 2025 Digital Sciences, Energy Transition, and Monitoring & Observation . Each of these markets is expected to see significant growth rates over the short, medium, and long term. Looking forward, we expect our Beyond the Core offerings to represent above 20% of CGG’s revenues in 2025.The total Digital market in the energy industry is expected to be over $30 billion by 2025. CGG offers Digital Sciences technology including the hardware platform, middleware, and software services that are required to cost effectively support advanced cloud-based High-Performance Computing (“HPC”) workflows and data transformation services. Today our Digital Sciences solutions support over 700 users, including our internal and external clients, with around 300 petaflops of compute power and around 240 petabytes of storage, mainly for their data processing and digital transformation needs. As a service, CGG also provides highly advanced geoscience, physics, and data science algorithms that are at the cutting edge of what is possible in computational science. The accessible market for our specialized Digital Sciences offerings, is around $1.2 billion in 2022, growing to $1.6 billion in 2025, a CAGR of ~10% . Today, we have several clients accessing Software as a Service on the CGG HPC cloud, have provided high-end GPU systems onsite to our clients globally, and our Artificial Intelligence lab continues to expand with client opportunities across all Beyond the Core areas.The total Energy Transition market for capital investments in energy is expected to be almost $5 Trillion on an annual average until 2030, hence reaching 4.5% of global GDP in 2030. Carbon Capture Utilization and Storage (“CCUS”) in particular, represents a substantial submarket and could grow to 7.6Gt CO2 by 2050 from just 40Mt in 2020. CGG offers technologies, data, and services for CCUS, Geothermal, Environmental Sciences and Minerals and Mining , amongst others. In support of these rapidly growing markets, CGG offers its library of earth data of more than 50 petabytes, together with specialized services and technologies for science-based analysis and monitoring. CGG has been involved in over 130 geothermal projects, most major CCUS projects, including Sleipner, Troll, Weyburn, Pembina and Gorgon, and have expanding offerings in Minerals & Mining, with the most recent launch being TailingsPulse, a Monitoring Solution for tailings storage facilities. We have also seen strong interest in our new environmental sciences solutions, which are mainly focused on environmental analytics and pollution monitoring. The accessible market for our Energy Transition offerings is around $500 million in 2022, growing to $1.0 billion in 2025, a CAGR of ~26% . At current we have around 30 projects active globally.Monitoring & Observation market was more than $205 billion in 2021 and is expected to reach a size of $411 billion by 2026.CGG offers advanced sensor technology and acquisition solutions designed to gather massive amounts of data, analyze these datasets, and through our cloud computing capabilities deliver key insights directly to the engineers’ desktop or mobile devices in near-real time. To address this growing market, CGG offers structural health and earthworks monitoring solutions along with underwater acoustic monitoring solutions, which are mainly aimed at environmental understanding and protection.The accessible market for our Monitoring & Observation offerings is around $1.5 billion in 2022 and steady double-digit growth per annum is expected through 2025. At current, our first commercial systems are active in Europe, and we have multiple pilots in North America.https://www.cgg.com/industry-applications .
Key Figures - Fourth Quarter 2021
Key Figures IFRS – Fourth Quarter 2021 2020 2021 Variances % Operating revenues 217 471 - Operating income / (loss) (60) (23) 62% Equity from investments (10) - - Net cost of financial debt (34) (26) 24% Other financial income / (loss) 2 - - Income taxes 8 22 - Net income / (loss) from continuing operations (94) (27) 71% Net income / (loss) from discontinued operations (8) (1) 93% Group net income / (loss) (101) (28) 72% Operating cash flow 26 102 - Net cash flow (95) 81 - Net debt 1,004 989 (1% ) Net debt before IFRS 16 849 866 2% Capital employed 2,168 1,996 (8% )
Key Figures – 12 months 2021
Key Figures IFRS – 12 months 2021 2020 2021 Variances % Operating revenues 886 1,062 20% Operating income / (loss) (173) (23) 87% Equity from investments (32) - - Net cost of financial debt (134) (121) 10% Other financial income / (loss) (39) (42) (8% ) Income taxes (29) 4 - Net income / (loss) from continuing operations (408) (182) 55% Net income / (loss) from discontinued operations (29) 2 - Group net income / (loss) (437) (180) 59% Operating cash flow 264 337 27% Net cash flow (247) 19 - Net debt 1,004 989 (1% ) Net debt before IFRS 16 849 866 2% Capital employed 2,168 1,996 (8% )
Key Segment Figures - Fourth Quarter 2021
Key Segment Figures – Fourth Quarter 2021 2020 2021 Variances % Segment revenue 283 301 7% Segment EBITDAs 116 154 33% Group EBITDAs margin 41% 51% 10 bps Segment operating income / (loss) (44) (57) - Opinc margin (15% ) (19% ) (4) bps IFRS 15 adjustment (16) 35 - IFRS operating income / (loss) (60) (23) 62% Operating cash flow 26 102 - Segment net cash flow (95) 81 - Supplementary information Adjusted segment EBITDAs before NRC 120 150 24% EBITDAs margin 43% 50% 7 bps Adjusted segment operating income before NRC 16 78 - Opinc margin 6% 26% 20 bps
Key Segment Figures – 12 months 2021
Key Segment Figures – 12 months 2021 2020 2021 Variances % Segment revenue 955 941 (1% ) Segment EBITDAs 360 344 (4% ) Group EBITDAs margin 38% 37% (1) bps Segment operating income / (loss) (165) (49) 71% Opinc margin (17% ) (5% ) 12 bps IFRS 15 adjustment (8) 25 - IFRS operating income / (loss) (173) (23) 87% Operating cash flow 264 337 27% Segment net cash flow (247) 19 - Supplementary information Adjusted segment EBITDAs before NRC 403 337 (16% ) EBITDAs margin 42% 36% (6) bps Adjusted segment operating income before NRC 50 78 58% Opinc margin 5% 8% 3 bps
Key figures bridge: Segment to IFRS - Fourth Quarter 2021
P&L items Segment figures IFRS 15 adjustment IFRS figures Total Revenue 301 170 471 OPINC (57) 35 (23) Cash Flow Statement items Segment figures IFRS 15 adjustment IFRS figures EBITDAs 154 170 324 Change in Working Capital & Provisions (46) (170) (216) Cash Provided by Operations 102 - 102 Multi-Client Data Library NBV Segment figures IFRS 15 adjustment IFRS figures Opening Balance Sheet , Sep 21 311 245 556 Closing Balance Sheet , Dec 31th 21 283 109 393
Key figures bridge: Segment to IFRS – 12 months 2021
P&L items Segment figures IFRS 15 adjustment IFRS figures Total Revenue 941 121 1,062 OPINC (49) 25 (23) Cash Flow Statement items Segment figures IFRS 15 adjustment IFRS figures EBITDAs 344 121 465 Change in Working Capital & Provisions (2) (121) (123) Cash Provided by Operations 337 - 337 Multi-Client Data Library NBV Segment figures IFRS 15 adjustment IFRS figures Opening Balance Sheet , Jan 1st 21 285 207 492 Closing Balance Sheet , Dec 31th 21 283 109 393
Fourth Quarter 2021 Segment Financial Results
Geology, Geophysics & Reservoir (GGR)
Geology, Geophysics & Reservoir (GGR) 2020 2021 Variances % Segment revenue 176 207 17% Geoscience 75 93 24% Multi-Client 101 114 13% Prefunding 70 59 (16% ) After-Sales 31 55 78% Segment EBITDAs 108 145 34% EBITDAs Margin 61% 70% 9 bps Segment operating income / (loss) (43) (57) (31% ) OPINC Margin (25% ) (27% ) (3) bps Equity from investments - - - Capital employed (in billion $) 1.7 1.5 (11% ) Supplementary information Adjusted segment EBITDAs before NRC 112 142 26% EBITDAs Margin 64% 69% 5 bps Adjusted segment OPINC before NRC 16 77 - OPINC Margin 9% 37% 28 bps Other Key Metrics Multi-Client cash capex ($m) (41) (37) 9% Multi-Client cash prefunding rate (%) 171% 158% (13) bps
GGR segment revenue was $207 million , up 17% year-on-year.
Geoscience revenue was $93 million , up 24% year-on-year.19% year-on-year.Multi-Client revenue was $114 million , up 13% year-on-year. $(37) million this quarter, down 9% year-on-year, and was dedicated to the marine Nebula area B & C program offshore Brazil and five reprocessing projects. $59 million , down (16)% year-on-year and the prefunding rate was 158% .$55 million this quarter, up 78% year-on-year.$283 million ($393 million after IFRS 15 adjustments) at the end of December 2021, split 91% offshore and 9% onshore.GGR segment EBITDAs was $145 million , a high 70% margin, and GGR Adjusted * segment EBITDAs was $142 million .
GGR segment operating income / (loss) was $(57) million , including $(23) million fair value adjustment of a multi-client survey offshore North Sea and $(102) million impairment of the multi-client goodwill after two consecutives years of lower than expected multi-client after-sales. GGR Adjusted * segment operating income was $77 million , a significant increase year-on-year, and a 37% margin.
GGR capital employed decreased to $1.5 billion at the end of December 2021.
Equipment
Equipment 2020 2021 Variances % Segment revenue 108 94 (12% ) Land 87 54 (38% ) Marine 13 27 - Downhole gauges 3 5 76% Non Oil & Gas 5 8 62% Segment EBITDAs 14 17 19% EBITDAs margin 13% 18% 5 bps Segment operating income 6 6 (9% ) OPINC Margin 5% 6% 1 bps Capital employed (in billion $) 0.6 0.6 - Supplementary information Adjusted segment EBITDAs before NRC 14 15 6% EBITDAs margin 13% 16% 3 bps Adjusted segment OPINC before NRC 6 7 15% OPINC margin 6% 8% 2 bps
Equipment segment revenue was $94 million , down (12)% year-on-year.
Land equipment sales were $54 million , representing 57% of total sales, with deliveries mainly in China, Russia and North Africa. Marine equipment sales were $27 million , representing 29% of total sales, as we completed the delivery of GPR 300 nodes order to the UAE. Downhole equipment sales were $5 million and sales of non Oil & Gas equipment were $8 million . Equipment segment EBITDAs was $17 million , a 18% margin, and Equipment Adjusted * segment EBITDAs was $15 million .
Equipment segment operating income was $6 million , a 6% margin and Equipment Adjusted * segment operating income was $7 million .
Equipment capital employed was stable at $0.6 billion at the end of December 2021.
Fourth Quarter 2021 Financial Results
Consolidated Income Statements 2020 2021 Variances % Exchange rate euro/dollar 1.18 1.15 Segment revenue 283 301 7% GGR 176 207 17% Equipment 108 94 (12% ) Elim & Other (1) - - Segment Gross Margin 44 103 - Segment EBITDAs 116 154 33% Adjusted GGR* 112 142 26% Adjusted Equipment* 14 15 6% Corporate (4) (6) (51% ) Elim & Other (2) (1) 43% Non recurring charges (4) 5 - Segment operating income / (loss) (44) (57) (32% ) Adjusted GGR* 16 77 - Adjusted Equipment* 6 7 15% Corporate (4) (6) (28% ) Elim & Other (2) (1) 53% Non recurring charges (59) (135) - IFRS 15 adjustment (16) 35 - IFRS operating income / (loss) (60) (23) 62% Equity from investments (10) - - Net cost of financial debt (34) (26) 24% Other financial income (loss) 5 - - Income taxes 8 22 - NRC (Tax & OFI) (3) - - Net income / (loss) from continuing operations (94) (27) 71% Net income / (loss) from discontinued operations (8) (1) 93% IFRS net income / (loss) (101) (28) 72% Shareholder's net income / (loss) (103) (27) 74% Basic Earnings per share in $ (0.13) (0.03) 77% Basic Earnings per share in € (0.11) (0.03) 73%
Segment revenue was $301 million , up 7% year-on-year and up 12% sequentially. The respective contributions from the Group’s businesses were 31% from Geoscience, 38% from Multi-Client (69% from the GGR segment) and 31% from Equipment.
Pro-forma segment revenue excluding GeoSoftware and SDS, was $296 million , up 11% year-on-year.
Segment EBITDAs was $154 million , up 33% year-on-year, a high 51% margin, and Adjusted * segment EBITDAs was $150 million , up 24% year-on-year.
Segment operating income / (loss) was $(57) million including $(23) million fair value adjustment of a multi-client survey and $(102) m ulti-client goodwill impairment.
Adjusted* segment operating income was $78 million , a significant increase year-on-year, and a 26% margin.
IFRS 15 adjustment at operating income level was $35 million , and IFRS operating income / (loss) , after IFRS 15 adjustment, was $(23) million .
Cost of financial debt was $(26) million .
Taxes were at $22 million .
Net Income / (loss) from continuing operations was $(27)million .
Q4 2021 Discontinued operations : Revenue from discontinued operations was $0 million .Net loss from discontinued operations was $(1) million .
Group net income / (loss) was $(28) million .
After minority interests, Group net income attributable to CGG shareholders was $(27) million / €(23) million .
Fourth Quarter 2021 Cash Flow
Cash Flow items 2020 2021 Variances % Segment Operating Cash Flow 26 102 - CAPEX (55) (55) - Industrial (5) (12) - R&D (9) (6) 33% Multi-Client (Cash) (41) (37) 9% Marine MC (40) (37) 8% Land MC (1) - - Proceeds from disposals of assets - 95 - Segment Free Cash Flow (29) 142 - Lease repayments (12) (13) (13% ) Paid Cost of debt (34) (53) (57% ) CGG 2021 Plan (18) (8) 59% Free cash flow from discontinued operations (2) 13 - Net Cash flow (95) 81 - Financing cash flow - 2 - Forex and other 16 (3) - Net increase/(decrease) in cash (79) 80 - Supplementary information Change in working capital and provisions, included in Segment Operating Cash Flow (86) (46) 53%
Segment Operating Cash Flow was $102 million .
Total Capex was $(55) million :
Industrial Capex was $(12) million ,Research & Development Capex was $(6) million , a 33% decrease year-on-yearMulti-client cash Capex was $(37) million , a 9% decrease year-on-yearSegment Free Cash Flow was $142 million , including $95 million proceeds from disposal of GeoSoftware and Physical Storage Businesses.
Net Cash Flow was $81 million , after $(13) million lease repayments, $(53) million paid cost of debt, $(8) million CGG 2021 Plan cash costs and $13 million free cash flow from discontinued operations
2021 Financial Results
Consolidated Income Statements 2020 2021 Variance % Exchange rate euro/dollar 1.14 1.19 Segment revenue 955 941 (1% ) GGR 668 586 (12% ) Equipment 291 357 23% Elim & Other (4) (1) 75% Segment Gross Margin 169 186 10% Segment EBITDAs 360 344 (4% ) Adjusted GGR* 402 330 (18% ) Adjusted Equipment* 23 39 69% Corporate (21) (19) 7% Elim & Other (1) (12) - Non recurring charges (43) 7 - Segment operating income / (loss) (165) (49) 71% Adjusted GGR* 82 105 27% Adjusted Equipment* (9) 8 - Corporate (23) (22) 7% Elim & Other (1) (12) - Non recurring charges (214) (127) 41% IFRS 15 adjustment (8) 25 - IFRS operating income / (loss) (173) (23) 87% Equity from investments (32) - - Net cost of financial debt (134) (121) 10% Other financial income (loss) 8 (42) - Income taxes (20) 4 - NRC (Tax & OFI) (56) - - Net income / (loss) from continuing operations (408) (182) 55% Net income / (loss) from discontinued operations (29) 2 - IFRS net income / (loss) (437) (180) 59% Shareholder's net income / (loss) (440) (181) 59% Basic Earnings per share in $ (0.62) (0.25) 59% Basic Earnings per share in € (0.54) (0.21) 61%
2021 Segment revenue was $941 million , down (1)% compared to last year. The respective contributions from the Group’s businesses were 33% from Geoscience, 29% from Multi-Client (62% from the GGR segment) and 38% from Equipment.
2021 Pro-forma segment revenue excluding GeoSoftware and SDS, was $901 million , stable year-on-year.
2021 GGR segment revenue was $586 million , down (12)% year-on-year
Geoscience revenue was $309 million , down (6)% year-on-year. Pro-forma segment revenue excluding GeoSoftware and SDS, was $269million , a (2)% decrease year-on-year.Multi-Client sales were $276 million , down (19)% year-on-year. Prefunding revenue was $150 million , down (29)% year-on-year on lower cash Capex. Multi-Client cash Capex was $(168) million , down (30)% year-on-year. Cash prefunding rate was 89% . After-sales were $126 million , down (1)%.Equipment revenue was $357 million , up 23% year-on-year.
Segment EBITDAs was $344 million , down (4)% year-on-year, a 37% margin. GGR segment EBITDA was $334 million , a 57% margin, and Equipment segment EBITDA was $40 million , a 11% margin.
Adjusted * segment EBITDAs was $337 million , a 36% margin. GGR adjusted segment EBITDA was $330 million , a 56% margin, and Equipment adjusted segment EBITDA was $39 million , a 11% margin.
Segment operating income / (loss) was $(49) million . GGR segment operating income / (loss) was $(21) million and Equipment segment operating income was $5 million .
Adjusted* segment operating income was $78 million , an 8% margin. GGR adjusted segment operating income was $105 million , a 18% margin, and Equipment adjusted segment operating income was $8 million , a 2% margin.
IFRS 15 adjustment at operating income level was $25 million and IFRS operating income / (loss) , after IFRS 15 adjustment, was $(23) million .
Cost of financial debt was $(121) million .
Other Financial Items were $(42) million , including $(40) million of refinancing related fees.
Taxes were at $4 million .
Net income / (loss) from continuing operations was $(182) million .
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 $19 million .-Net profit from discontinued operations was $2 million .
Group net income / (loss) was $(180) million .
After minority interests, Group loss attributable to CGG’s shareholders at the end of December 2021 was $(181) million / €(152) million .
Cash Flow
Cash Flow items 2020 2021 Variances % Segment Operating Cash Flow 264 337 27% CAPEX (303) (227) 25% Industrial (23) (29) (25% ) R&D (41) (30) 28% Multi-Client (Cash) (239) (168) 30% Marine MC (210) (167) 21% Land MC (29) (2) 94% Proceeds from disposals of assets - 91 - Segment Free Cash Flow (39) 201 - Lease repayments (55) (57) (3% ) Paid Cost of debt (80) (90) (12% ) CGG 2021 Plan (87) (33) 62% Free cash flow from discontinued operations 15 (2) - Net Cash Flow (247) 19 - Financing cash flow (5) (67) - Forex and other 27 (18) - Net increase/(decrease) in cash (225) (66) 71% Supplementary information Change in working capital and provisions, (88) (2) -
2021 Segment Operating Cash Flow was $337 million compared to $264 million last year, a 27% increase.
Capex was $(227) million , a 25% decrease year-on-year,
Industrial Capex was $(29) million , up (25)% year-on-year,Research & Development Capex was $(30) million , a 28% decrease year-on-year,Multi-client cash Capex was $(168) million , a 30% decrease year-on-year.Segment Free Cash Flow was positive $201 million , including $91 million proceeds from disposals of assets and compared to negative $(39) million in 2020.
After lease repayments of $(57) million , Paid cost of debt of $(90) million , CGG 2021 Plan cash costs of $(33) million and Free cash flow from discontinued operations of $(2) million , Group Net Cash Flow was positive $19 million , compared to highly negative $(247) million in 2020.
Refinancing impact on cash flow was $(67) million , including $(40) million refinancing fees and call premiums, and $(28) million net reduction in debt principal.
Balance Sheet
Group’s liquidity amounted to $419 million at the end of December 31, 2021, including cash liquidity of $319 million after reducing gross debt by $28m as part of refinancing and $100 million of undrawn RCF.
Group gross debt before IFRS 16 was $1,186 million net debt was $866 million
Group gross debt after IFRS 16 was $1,308 million net debt was $989 million
Segment leverage ratio of Net debt to Adjusted segment EBITDAs was 2.9x at the end of December 2021.
Q4 2021 Conference call
The press release and the slide presentation are available on our website www.cgg.com An English language analysts conference call is scheduled today at 6.30 pm (CET) To follow the conference call, please access the audio webcast from your computer at www.cgg.com
Please dial 5 to 10 minutes prior to the scheduled start time the following numbers:
Confirmation Code: 8578464 Standard International +44 (0) 2071 928338 France (Toll Free) +33 (0) 805101465 France (Local) +33 (0) 170700781 UK (Toll Free) +44 (0) 8002796619 UK (Local) +44 (0) 8444819752 US (Toll Free) +1 877 8709 135 US (Local) +1 646 7413 167
A replay of the conference call will be made available the day after for a period of 12 months in audio format on the Company's website www.cgg.com .
About CGG
CGG (www.cgg.com ) is a global geoscience technology leader. Employing around 3,700 people worldwide, CGG provides a comprehensive range of data, products, services and solutions that support our clients to more efficiently and responsibly solve complex natural resource, environmental and infrastructure challenges. CGG is listed on the Euronext Paris SA (ISIN: 0013181864).
Contacts
CONSOLIDATED FINANCIAL STATEMENTS December 31, 2021
Consolidated statement of operations
In millions of US$ Year 2021 2020 Operating revenues 1,062.2 886.0 Other income from ordinary activities 0.8 0.7 Total income from ordinary activities 1,063.0 886.7 Cost of operations (853.2) (726.5) Gross profit 209.8 160.2 Research and development expenses – net (17.0) (18.6) Marketing and selling expenses (29.9) (32.5) General and administrative expenses (62.9) (67.9) Other revenues (expenses) – net (123.2) (214.5) Operating income (23.2) (173.3) Cost of financial debt – gross (121.5) (136.3) Income from cash and cash equivalents 1.0 2.2 Cost of financial debt – net (120.5) (134.1) Other financial income (loss) (42.4) (39.4) Income (loss) before income taxes and share of income (loss) from companies accounted for under the equity method (186.1) (346.8) Income taxes 4.4 (29.3) Net income (loss) before share of net income (loss) from companies accounted for under the equity method (181.7) (376.1) Net income (loss) from companies accounted for under the equity method 0.1 (31.8) Net income (loss) from continuing operations (181.6) (407.9) Net income (loss) from discontinued operations 1.6 (28.9) Consolidated net income (loss) (180.0) (436.8) Attributable to: Owners of CGG (180.5) (440.5) Non-controlling interests 0.5 3.7 Weighted average number of shares outstanding 711,526,474 710,739,746 Weighted average number of shares outstanding adjusted for dilutive potential ordinary shares 711,526,474 710,739,746 Net income (loss) per share - Base (0.25) (0.62) - Diluted (0.25) (0.62) Net income (loss) from continuing operations per share - Base (0.25) (0.58) - Diluted (0.25) (0.58) Net income (loss) from discontinued operations per share - Base - (0.04) - Diluted - (0.04) (a) In accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”, financial information was restated to present comparative amounts for each period presented.
Consolidated statement of financial position
In millions of US$ 12.31.2021 12.31.2020 Restated (a) ASSETS Cash and cash equivalents 319.2 385.4 Trade accounts and notes receivable, net 350.7 325.0 Inventories and work-in-progress, net 197.3 237.8 Income tax assets 68.7 84.6 Other current financial assets, net 1.7 13.7 Other current assets, net 105.1 92.0 Assets held for sale, net - 92.7 Total current assets 1,042.7 1,231.2 Deferred tax assets 19.6 10.3 Investments and other financial assets, net 17.8 13.6 Investments in companies accounted for under the equity method 28.1 28.6 Property plant & equipment, net 212.1 268.1 Intangible assets, net 520.7 639.2 Goodwill, net 1,083.6 1,186.5 Total non-current assets 1,881.9 2,146.3 TOTAL ASSETS 2,924.6 3,377.5 LIABILITIES AND EQUITY Bank overdrafts - 0.2 Financial debt – current portion 90.3 58.6 Trade accounts and notes payable 76.4 96.7 Accrued payroll costs 105.4 106.6 Income taxes payable 30.4 56.8 Advance billings to customers 27.1 19.5 Provisions – current portion 18.2 52.7 Other current financial liabilities 19.2 34.4 Other current liabilities 218.2 278.4 Liabilities associated with non-current assets held for sale - 13.0 Total current liabilities 585.2 716.9 Deferred tax liabilities 14.1 16.3 Provisions – non-current portion 30.6 51.8 Financial debt – non-current portion 1,218.1 1,330.3 Other non-current financial liabilities 37.4 53.2 Other non-current liabilities 32.8 44.4 Total non-current liabilities 1,333.0 1,496.0 Common stock 8.7 8.7 Additional paid-in capital 464.1 1,687.1 Retained earnings 570.0 (480.6) Other Reserves 5.0 (37.3) Treasury shares (20.1) (20.1) Cumulative income and expense recognized directly in equity (0.8) (0.7) Cumulative translation adjustments (64.2) (37.4) Equity attributable to owners of CGG SA 962.7 1,119.7 Non-controlling interests 43.7 44.9 Total Equity 1,006.4 1,164.6 TOTAL LIABILITIES AND EQUITY 2,924.6 3,377.5 (a) In accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”, financial information was restated to present comparative amounts for each period presented.
Consolidated statement of cash flows
In millions of US$ Year 2021 2020 Restated (a) OPERATING ACTIVITIES Consolidated net income (loss) (180.0) (436.8) Less: Net income (loss) from discontinued operations (1.6) 28.9 Net income (loss) from continuing operations (181.6) (407.9) Depreciation, amortization and impairment 225.7 193.5 Impairment and amortization of Multi-Client surveys 281.5 284.8 Amortization and depreciation of Multi-Client surveys, capitalized (17.3) (18.1) Variance on provisions (37.7) 15.9 Share-based compensation expenses (1.8) 4.0 Net (gain) loss on disposal of fixed and financial assets (2.7) 0.5 Share of (income) loss in companies recognized under equity method (0.1) 31.8 Dividends received from companies accounted for under the equity method - - Other non-cash items 42.4 39.3 Net cash flow including net cost of financial debt and income tax 308.4 143.8 Less: Cost of financial debt 120.5 134.1 Less: Income tax expense (gain) (4.4) 29.3 Net cash flow excluding net cost of financial debt and income tax 424.5 307.2 Income tax paid (2.9) (7.7) Net cash flow before changes in working capital 421.6 299.5 Changes in working capital (84.9) (35.2) – Change in trade accounts and notes receivable (97.3) 39.0 – Change in inventories and work-in-progress 28.8 (25.9) – Change in other current assets 3.2 (2.8) – Change in trade accounts and notes payable (23.4) (1.6) – Change in other current liabilities 3.8 (43.9) Net cash flow from operating activities 336.7 264.3 INVESTING ACTIVITIES Total capital expenditures (tangible and intangible assets) net of variation of fixed assets suppliers and excluding Multi-Client surveys) (58.6) (64.1) Investments in Multi-Client surveys, net cash (168.3) (239.0) Proceeds from disposals of tangible and intangible assets 3.7 0.5 Acquisition of investments, net of cash & cash equivalents acquired (2.0) (0.4) Proceeds from divestments of activities and sale of financial assets 89.3 - Variation in subsidies for capital expenditures 0.3 - Variation in other non-current financial assets (3.2) 13.4 Net cash-flow used in investing activities (138.8) (289.6) FINANCING ACTIVITIES Repayment of long-term debt (1,227.5) (5.2) Total issuance of long-term debt 1,162.3 - Lease repayments (57.0) (55.5) Change in short-term loans (0.2) 0.1 Financial expenses paid (89.8) (80.2) Loan granted (1.8) Capital increase: – by owners of CGG - – by non-controlling interests in integrated companies - Dividends paid and share capital reimbursements – to owners of CGG - – to non-controlling interests of integrated companies (3.6) (7.2) Acquisition/disposal of treasury shares - - Net cash-flow from (used in) financing activities (217.6) (148.0) Effect of exchange rate changes on cash (10.5) 20.7 Impact of changes in consolidation scope Net cash flows incurred by discontinued operations (36.0) (72.5) Net increase (decrease) in cash and cash equivalents (66.2) (225.1) Cash and cash equivalents at beginning of year 385.4 610.5 Cash and cash equivalents at end of period 319.2 385.4 (a) In accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”, financial information was restated to present comparative amounts for each period presented.
