This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Strong Improvement In CGGVeritas Third Quarter 2012 Results

Regulatory News:

CGGVeritas (Paris:GA) (NYSE:CGV) announced today its non-audited third quarter 2012 consolidated 1 results. All comparisons are made on a year-on-year basis unless stated otherwise.

Third quarter results
  • Revenue totaled $855 million, up 7%
  • Operating income increased by 17% to $114 million, a 13% margin
  • Services operating income was at $62 million, a 10% margin
  • Sercel operating income was at $93 million, a 33% margin

Acquisition of Fugro’s Geoscience Division on track
  • The closing of the acquisition of Fugro’s Geoscience Division is still expected by the end of the year or by early 2013
  • This acquisition remains currently subject to the approval of anti-trust authorities in the United Kingdom, in Norway, in Turkey and in Australia and to the work’s council consultation
  • The Rights Issue of 414 million euros launched last September 26 th was successful, having been 195% oversubscribed

Signature of a collaborative relationship agreement with Baker Hughes
  • CGGVeritas announces today a collaborative relationship agreement with Baker Hughes on the shale plays in order to develop a complete range of services using reservoir models with calibrated seismic data
  • This collaboration could help oil and gas companies to accurately pinpoint reservoir “sweet spots” and optimize well placement and completion design earlier in the asset lifecycle for more efficient well construction and more productive wells

CGGVeritas CEO, Jean-Georges Malcor, commented:

“As expected, quarter after quarter, CGGVeritas continues to strengthen its results, reflecting the improvement in our operational performance as well as the increase in marine prices.

The acquisition of Fugro’s Geoscience Division is on track. Our capital increase with preferential subscription rights was favorably received by our shareholders who recognize that this operation will transform CGGVeritas into a fully integrated company in Geology, Geophysics and Reservoir.

We are also very pleased by the collaborative relationship agreement with Baker Hughes in the shale plays. This agreement is in line with our strategy of positioning our company on the entire value chain of Geoscience and to fully benefit from this favorable phase of the cycle.

For the end of the year, our multi-client activity should benefit from the recent announcement of lease sales in the Gulf of Mexico and Brazil and from the 27th round awards in the North Sea, after two exceptionally weak quarters. In this context, and with a fourth quarter expected to be strong across our activities, we confirm our 2012 objectives.

Looking forward, the current buoyant commercial climate bodes well for this favorable cycle continuing for the seismic industry in 2013. ”

1 Effective January 1, 2012, CGGVeritas changed the presentation currency of its consolidated financial statements from the euro to the U.S. dollar to better reflect the profile of an industry with revenues, costs and cash flows primarily generated in U.S. dollars. The first, second and third quarter 2011 figures shown in this press release have been restated as if the change in the Group presentation currency had been effective since January 1, 2004 (IFRS transition). In the context of our new presentation of cash indicators, first, second and third quarter 2011 EBITDAs and multi-client Capex figures have been restated

Third Quarter 2012 Results

Third Quarter 2012 Key Figures
   
Third Quarter Third Quarter
In million $   2012   2011*
Revenue   855   797
EBITDAs   278   248
Operating Income   114   98
Net Income   48   40
Cash Flow from Operations   171   113
Free Cash Flow   -39   -66
Backlog   1 280   1 240
 

*Restated figures
  • Group revenue was $855 million, up 7% year-on-year and up 3% sequentially.
  • Group operating income was $114 million, up 17% year-on-year and up 35% sequentially and representing a 13% margin:
    • Sercel operating income totaled $93 million, which was stable sequentially and its margin stood at 33%.
    • Services operating income increased significantly to $62 million, mainly due to the increase in marine prices. This represented a 10% margin, the highest since the first quarter of 2009.
  • The contribution from equity investees was at $13 million, up 25% sequentially. This is mainly due to the strong performance of Argas, particularly the favorable start of the KJO contract, which was originally expected to be operated by Ardiseis.
  • Net income totaled $48 million, compared to $40 million in the third quarter of 2011.
  • Earnings Before Interest Tax Depreciation and Amortization (EBITDAs) was at $278 million, up 12% year-on-year and up 22% sequentially.
  • Cash flow from operations was $171 million, up 51% year-on-year.
  • Total Capex represented $196 million this quarter, Industrial Capex represented $70 million and Multi-Client Capex reached $126 million with 28% of the fleet being dedicated to multi-client programs. The level of multi-client prefunding was 71% this quarter.
  • After payment of interest and high capital expenditure especially in our multi-client activity, net free cash flow was negative at $39 million.
  • Backlog was at $1.280 billion at the end of September 2012, slightly up year-on-year, up in Services at $1.070 billion and down at Sercel at $210 million.

Third Quarter 2012 Financial Results

Third Quarter 2012 key figures
   
In million $   Second Quarter

2012
 

Third Quarter

2012
  2011*
Group Revenue   831   855   797
Sercel   285   283   275
Services   599   634   592
Group Operating Income   85   114   98
Margin   10%   13%   12%
Sercel   92   93   87
Margin   32%   33%   31%
Services   19   62   53
Margin   3%   10%   9%
Net Income   34   48   40
Margin   4%   6%   5%
Net Debt 1 600 1 660   1 543
Net Debt to Equity Ratio 42% 43% 41%
Net Debt to LTM EBITDAs Ratio   1.7x   1.7x   1.8x
 

*Restated figures

1 of 13

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs