CGG Announces Third Quarter 2013 Results

PARIS, Nov. 7, 2013 (GLOBE NEWSWIRE) --
                        Third Quarter 2013 Revenue up 6%                               YTD Revenue up 14%                  2013 Revenue expected to increase by 15%-17%                     2013 EBIT margin to be between 12%-13%CGG  (ISIN:  0000120164 -  NYSE: CGG)announced  today its  non-audited third  quarter 2013 consolidated  results. Allcomparisons  are made on  a year-on-year basis  with CGG 2012 results before theFugro Geoscience acquisition.  * Q3 Revenue up 6% and EBIT at $95 million*      * Group revenue at $908 million, up 6%           * Lower Equipment sales due to temporary weakness in demand for            seismic equipment          * Low land acquisition activity          * Weaker multi-client after-sales after strong Q2          * High multi-client prefunding rate at 79%      * Reported Group EBIT at $73.2 million      * Group EBIT margin at 10.4% before NRFI (8.1% reported)      * Net income of $4 million  * End of September Revenue up 14% and EBIT at $350 million**      * Group revenue at $2.810 billion, up 14%      * Revenue down 21% in Equipment, up 28% in Acquisition and up 40% in        Geology, Geophysics & Reservoir (GGR)      * Reported Group EBIT at $352.6 million  and Group EBIT margin at        12.5%, 26.3% in Equipment, 6.6% in Acquisition and 25.0% in GGR      * Net income of $119 million corresponding to an EPS of $0.64 (€0.49) up        56%      * Backlog at the end of October stood at $1.25 billion with fleet utilized        96% in Q4, and 75% Q1 2014  * 2013 Expectations      * Group revenue expected to be up 15%-17%      * Group EBIT margin expected to be up and between 12%-13% including a 28%        EBIT margin for the Equipment Division      * Multi-client capex revised up to $450-$500 million with a prefunding        rate expected above 75%      * Industrial capex targeted at $300-$350 million      * Positive free cash flow generation, before Fugro Geoscience transaction        negative cash elements      * Improved Return On Capital Employed*Before the Q3 $(21)m non-recurring items related to the Fugro Geosciencetransaction (NRFI)**Before the 3Q $3m NFRICGG CEO, Jean-Georges Malcor, commented:"After a solid H1, which was better than expected, we are now seeing a tougherH2 due to a temporary weakness in demand for seismic equipment and softercontract marine market conditions. At the end of September, our revenue was up14% with an EBIT margin of 12.5%. Although our Q4 performance, driven byequipment and multi-client sales, will be typically stronger than Q3, we nowexpect our full year 2013 revenue to be up 15% to 17%. The 2013 EBIT marginshould however increase year-on-year and remain high between 12% and 13%, thanksto good operational performance and cost management.Looking  ahead into 2014, CGG should continue  on its path of profitable growth.The  successful  launch  of  Sercel's  508(XT)system, representing a step-changetechnology  in land acquisition  technology and the  confirmation of tenders forland  acquisition mega crews in H2 should  enable Equipment division to grow. InAcquisition, the recent award of large marine contracts in Angola and Mexico, aswell  as an expected  solid North Sea  season give us  confidence into 2014. GGRshould continue to increase its level of activity and deliver high profitabilitythanks notably to  its  high-end  technologies  in  Geology, Subsurface Imaging,Reservoir Characterization and well prefunded multi-clients programs."                         Third Quarter 2013 Key Figures                                |Third Quarter|Second Quarter 2013|Third Quarter                                |    2012     |                   |    2013                                |             |                   |In million $                    |             |                   |--------------------------------+-------------+-------------------+-------------Group Revenue                   |     855     |       1 032       |     908--------------------------------+-------------+-------------------+-------------Equipment                       |     283     |        254        |     223--------------------------------+-------------+-------------------+-------------Acquisition                     |     527     |        605        |     568--------------------------------+-------------+-------------------+-------------Geology, Geophysics & Reservoir |     240     |        367        |(GGR)                           |             |                   |     298--------------------------------+-------------+-------------------+-------------Group EBITDAs                   |     278     |        324        |     272--------------------------------+-------------+-------------------+-------------Group EBIT                      |     127     |        117        |     73--------------------------------+-------------+-------------------+-------------      Non-recurring items       |      0      |       (11)        |related to Fugro (NRFI)         |             |                   |    (21)--------------------------------+-------------+-------------------+-------------Group EBIT before NRFI          |     127     |        128        |     95--------------------------------+-------------+-------------------+-------------Equipment                       |     93      |        71         |     51--------------------------------+-------------+-------------------+-------------Acquisition                     |     37      |        28         |     42--------------------------------+-------------+-------------------+-------------GGR                             |     53      |        96         |     54--------------------------------+-------------+-------------------+-------------Net Income                      |     48      |        36         |      4--------------------------------+-------------+-------------------+-------------Cash Flow from Operations       |     171     |        204        |     189--------------------------------+-------------+-------------------+-------------Free Cash Flow                  |    (39)     |       (43)        |    (30)--------------------------------+-------------+-------------------+-------------Net Debt                        |    1 660    |       2 170       |    2 369--------------------------------+-------------+-------------------+-------------Capital Employed                |    5 649    |       6 868       |    7 079--------------------------------+-------------+-------------------+-------------Backlog                         |    1 280    |       1 300       |    1 250--------------------------------+-------------+-------------------+-------------                              YTD 2013 Key Figures                                                     |  YTD  |  YTD  |                                                     | 2012  | 2013  |                                                     |       |       |          In million $                               |       |       |         --------------------------------------------+-------+-------+          Group Revenue                              | 2 473 | 2 810 |         --------------------------------------------+-------+-------+          Equipment                                  |  916  |  728  |         --------------------------------------------+-------+-------+          Acquisition                                | 1 377 | 1 767 |         --------------------------------------------+-------+-------+          Geology, Geophysics & Reservoir (GGR)      |  658  |  925  |         --------------------------------------------+-------+-------+          Group EBITDAs                              |  719  |  909  |         --------------------------------------------+-------+-------+          Group EBIT                                 |  280  |  353  |         --------------------------------------------+-------+-------+                Non-recurring items related to Fugro |   0   |   3   |         --------------------------------------------+-------+-------+          Group EBIT before NRFI                     |  280  |  350  |         --------------------------------------------+-------+-------+          Equipment                                  |  300  |  191  |         --------------------------------------------+-------+-------+          Acquisition                                |   3   |  117  |         --------------------------------------------+-------+-------+          GGR                                        |  120  |  231  |         --------------------------------------------+-------+-------+          Group EBIT margin                          |  11%  |  12%  |         --------------------------------------------+-------+-------+          Equipment margin                           |  33%  |  26%  |         --------------------------------------------+-------+-------+          Acquisition margin                         |  0%   |  7%   |         --------------------------------------------+-------+-------+          GGR margin                                 |  18%  |  25%  |         --------------------------------------------+-------+-------+          Net Income                                 |  79   |  119  |         --------------------------------------------+-------+-------+          Cash Flow from Operations                  |  467  |  456  |         --------------------------------------------+-------+-------+          Free Cash Flow                             | (175) | (222) |         --------------------------------------------+-------+-------+Post-closing events:  * Geo Atlantic was returned to its shipowner on October 30(th)Third Quarter 2013 Financial Results by DivisionEquipment-------------------------------+-------------+--------------+-------------+Equipment                      |Third Quarter|Second Quarter|Third Quarter|                               |    2012     |     2013     |    2013     |                               |             |              |             |In million $                   |             |              |             |-------------------------------+-------------+--------------+-------------+Equipment Total Revenue        |     283     |     254      |     223     |-------------------------------+-------------+--------------+-------------+   External Revenue            |     221     |     188      |     187     |-------------------------------+-------------+--------------+-------------+EBITDAs                        |     105     |      83      |     63      |-------------------------------+-------------+--------------+-------------+   Margin                      |     37%     |     33%      |     28%     |-------------------------------+-------------+--------------+-------------+EBIT                           |     93      |      71      |     51      |-------------------------------+-------------+--------------+-------------+  Margin                       |     33%     |     28%      |     23%     |-------------------------------+-------------+--------------+-------------+Capital Employed (in billion $)|      -      |     0.8      |     0.9     |-------------------------------+-------------+--------------+-------------+Equipment  division Total  Revenue was  $223 million,  down 21% compared  to thethird  quarter of  2012 and down  12% sequentially due  to temporary weakness inseismic  equipment which represented  34% of total revenue.  External sales were$187  million,  down  15% and  internal  sales represented 16% of total revenue.Sales were strong in Eastern Europe and Russia.In  September Sercel successfully launched  the 508(XT), its new-generation landacquisition  system.  The  508(XT) will  have  the ability to address increasingindustry  demand for land Mega-Crews to record  up to 1 million channels in realtime  and improves  data quality  through real  time quality  control and secondgeneration  MEMS sensors three  times quieter than  any existing sensor. It willalso  lead  to  increased  productivity  through  zero  downtime with reinforcedredundancy  systems and  efficient operational  cost management with 30% lighterequipment  and the need for  25% less crew. Finally, it  will contribute to safeand environmentally friendly operations.Equipment division EBITDAs was $63 million, a margin of 28%.Equipment  division EBIT was $51 million, a margin of 23%. The reduced margin ismainly due to stable operating costs (R&D and SG&A) facing lower revenue.Equipment  division Capital  Employed was  $0.9 billion  at the end of September2013.Acquisition------------------------------------+-------------+--------------+-------------+Acquisition                         |Third Quarter|Second Quarter|Third Quarter|                                    |    2012     |     2013     |    2013     |                                    |             |              |             |In million $                        |             |              |             |------------------------------------+-------------+--------------+-------------+Acquisition Total Revenue           |     527     |     605      |     568     |------------------------------------+-------------+--------------+-------------+    External Revenue                |     394     |     477      |     423     |------------------------------------+-------------+--------------+-------------+Total Marine                        |     360     |     511      |     462     |------------------------------------+-------------+--------------+-------------+Total Land and Airborne Acquisition |     167     |      94      |     106     |------------------------------------+-------------+--------------+-------------+EBITDAs                             |     91      |     121      |     115     |------------------------------------+-------------+--------------+-------------+Margin                              |     17%     |     20%      |     20%     |------------------------------------+-------------+--------------+-------------+EBIT                                |     37      |      28      |     42      |------------------------------------+-------------+--------------+-------------+Margin                              |     7%      |      5%      |     7%      |------------------------------------+-------------+--------------+-------------+Capital Employed (in billion $)     |      -      |     3.3      |     3.4     |------------------------------------+-------------+--------------+-------------+Acquisition division Total Revenue was $568 million, up 8% year-on-year and down6%, sequentially with a strong operational performance by Marine acquisition andlower land acquisition revenue. External revenue was $423 million.  * Marine  Acquisition revenue was  $462 million, up  28% year-on-year and down    10% sequentially.  22% of the fleet was  dedicated to multi-client programs.    Utilization  rate was at a high level  this quarter for the whole fleet with    availability  rate at 89% and a production rate at a historically high level    at 94%.    During  the quarter,  CGG was  notably awarded  a BroadSeis(TM)  contract by    PETRONAS  to  acquire  and  process  a  10,000km2 3D seismic  survey program    offshore  Malaysia. CGG also received a letter of award for a large high-end    BroadSeis  wide-azimuth  acquisition  program  in  Angola corresponding to a    1,484 km2  acquisition  program.  CGG  has  also  been  recently selected to    acquire the phase 5 of the Pemex's Centauro program in Mexico which will add    another  6,850 km2 of  data to  the existing  25,000 km2 acquired  since the    launch  of the program in October  2010, bringing the total volume to almost    32,000 km(2).  * Land  and Airborne Acquisition revenue totalled $106 million, down 37% year-    on-year  and up 10% sequentially.  This decrease y-o-y  is mainly due to the    transfer  of  our  shallow  water  and  OBC/OBN  activity  into  the  Seabed    Geosolutions  JV. The  situation in  North Africa  is slowly  improving. The    Airborne organization joined CGG on the 2(nd) of September.Acquisition division EBITDAs was $115 million, a margin of 20%.Acquisition  division EBIT was $42 million (before NRFI), a margin of 7%. Marineacquisition  delivered a strong operational performance with a record productionrate. Land profitability has slightly improved.Acquisition  division Capital Employed was $3.4  billion at the end of September2013.Geology, Geophysics & Reservoir (GGR)-------------------------------+-------------+--------------+-------------+GGR                            |Third Quarter|Second Quarter|Third Quarter|                               |    2012     |     2013     |     2013    |                               |             |              |             |In million $                   |             |              |             |-------------------------------+-------------+--------------+-------------+GGR Total Revenue              |     240     |     367      |     298     |-------------------------------+-------------+--------------+-------------+Multi-client and basin data    |     117     |     215      |     145     |-------------------------------+-------------+--------------+-------------+Prefunding                     |     89      |      87      |     97      |-------------------------------+-------------+--------------+-------------+Subsurface Imaging & Reservoir |     123     |     152      |     153     |-------------------------------+-------------+--------------+-------------+EBITDAs                        |     152     |     218      |     169     |-------------------------------+-------------+--------------+-------------+Margin                         |     64%     |     59%      |     57%     |-------------------------------+-------------+--------------+-------------+EBIT                           |     53      |      96      |     54      |-------------------------------+-------------+--------------+-------------+Margin                         |     22%     |     26%      |     18%     |-------------------------------+-------------+--------------+-------------+Capital Employed (in billion $)|      -      |     2.8      |     2.8     |-------------------------------+-------------+--------------+-------------+GGR  Division Total Revenue was $298  million, up 24% year-on-year and down 19%sequentially with lower multi-client after-sales as expected.  * Multi-client  and basin data revenue increased to $145 million, up 24% year-    on-year and down 33% sequentially with low after-sales after a strong second    quarter whereas the cash prefunding rate was 79%, higher than expected.  * Prefunding  revenue  was  $97  million.  Multi-client  cash  capex  was $125    million, 79% prefunded and mainly focused offshore in the North Sea but also    in  the  Gulf  of  Mexico  with  the  continuation of our IBALT program. CGG    delivered  on schedule  the Fast  Trax(TM) TTI  RTM processed  data from its    IBALT  broadband full-azimuth survey covering  over 5,000 km(2) (221 blocks)    in  the Keathley Canyon  area of the  Gulf of Mexico.  CGG also successfully    completed a second BroadSeis(TM) multi-client survey offshore Norway located    in  the southeastern part  of the Barents  Sea. Following a  very strong Q2,    after-sales were at a low level.  * Subsurface Imaging & Reservoir revenue was $153 million, up 25% year-on-year    and  stable sequentially. Demand for  imaging and reservoir characterization    activities  remained strong. CGG and Baker  Hughes signed a letter of intent    to  realign  the  firms'  joint  venture  VSFusion  to focus on microseismic    monitoring,   processing,   visualization  and  interpretation  as  well  as    microseismic  permanent monitoring. The joint venture, now called Magnitude,    strengthens  the  capabilities  of  Baker  Hughes  and CGG in unconventional    resource plays and other emerging markets.GGR Division EBITDAs was $169 million, a margin of 57%.GGR   Division   EBIT  was  $54  million,  a  margin  of  18%. The  multi-clientdepreciation  rate amounted to 74%, leading to a  $803 million Net Book Value atthe end of September 2013.GGR Division Capital Employed was $2.8 billion at the end of September 2013.Third Quarter 2013 Financial ResultsGroup  Total  Revenue  was  $908  million,  up  6% year-on-year  and  down  12%sequentially.  This breaks down to 20% from the Equipment division, 47% from theAcquisition division, and 33% from the GGR division.Reported Group EBITDAs was $272 million, a margin of 30%. Before the non-recurring charge associated with the Fugro Geoscience transaction, Group EBITDAswas $274 million.                                    |             |              |             |                                    |Third Quarter|Second Quarter|Third Quarter|                                    |    2012     |     2013     |    2013     |                                    |             |              |             |In million $                        |             |              |             |------------------------------------+-------------+--------------+-------------+Group EBITDAs                       |     278     |     324      |     272     |------------------------------------+-------------+--------------+-------------+   Margin                           |     32%     |     31%      |     30%     |------------------------------------+-------------+--------------+-------------+   Equipment                        |     105     |      83      |     63      |------------------------------------+-------------+--------------+-------------+   Acquisition                      |     91      |     121      |     115     |------------------------------------+-------------+--------------+-------------+   GGR                              |     152     |     218      |     169     |------------------------------------+-------------+--------------+-------------+Eliminations                        |    (60)     |     (75)     |    (62)     |------------------------------------+-------------+--------------+-------------+Corporate                           |    (10)     |     (14)     |    (10)     |------------------------------------+-------------+--------------+-------------+Non-recurring items related to Fugro|      0      |     (10)     |     (2)     |------------------------------------+-------------+--------------+-------------+Reported Group EBIT was $73.2 million, a margin of 8.1%. Before the non-recurring charge associated with the Fugro Geoscience transaction, Group EBITwas $94.6 million, a margin of 10.4%. During the quarter, the non-recurringitems related to the Fugro Geoscience transaction (NFRI) included the year-to-date negative contribution of the Seabed Geosolutions JV due to slow start ofactivity and operational issues on one contract.                                    |             |              |             |                                    |Third Quarter|Second Quarter|Third Quarter|                                    |    2012     |     2013     |    2013     |                                    |             |              |             |In million $                        |             |              |             |------------------------------------+-------------+--------------+-------------+Group EBIT                          |     127     |     117      |     73      |------------------------------------+-------------+--------------+-------------+   Margin                           |     15%     |     11%      |     8%      |------------------------------------+-------------+--------------+-------------+   Equipment                        |     93      |      71      |     51      |------------------------------------+-------------+--------------+-------------+   Acquisition                      |     37      |      28      |     42      |------------------------------------+-------------+--------------+-------------+   GGR                              |     53      |      96      |     54      |------------------------------------+-------------+--------------+-------------+   Eliminations                     |    (42)     |     (51)     |    (41)     |------------------------------------+-------------+--------------+-------------+  Corporate                         |    (13)     |     (15)     |    (12)     |------------------------------------+-------------+--------------+-------------+  Non-recurring items related to    |      0      |     (11)     |    (21)     |Fugro                               |             |              |             |------------------------------------+-------------+--------------+-------------+Financial Charges were $59 million:  * Cost  of debt was  $51 million including  the $4 million one-off accelerated    amortization relating to the early repayment of $125m of the 2016 High Yield    Bond  in August 2013. The  total amount of  interest paid during the quarter    was $16 million  * Other  financial items were negative at  $8 million including the $6 million    call premium paid with the 2016 High Yield Bond partial reimbursementTaxes were $11 million including the $5 million favorable impact of deferred taxon currency conversion.Group Net Income was $4 million.After  minority interests, Net  Income attributable to  the owners of  CGG was again of $2 million/€2 million. EPS was positive at $0.01/€0.01.Cash FlowCash  Flow from  operations was  $189 million  compared to  $171 million for thethird quarter 2012.Global Capex was $206 million this quarter.  * Industrial capex was $65 million  * Research & Development capex was $17 million  * Multi-client cash capex was $125 million                                      |               |                |                                | Third Quarter | Second Quarter | Third Quarter                                     |     2012      |      2013      |     2013                               |               |                |                    In million $      |               |                |           -------------------+---------------+----------------+---------------+            Capex             |      196      |      198       |      206      |           -------------------+---------------+----------------+---------------+             Industrial       |      63       |       77       |      65       |           -------------------+---------------+----------------+---------------+             R&D              |       7       |       14       |      17       |           -------------------+---------------+----------------+---------------+            Multi-client Cash |      126      |      107       |      125      |                              |               |                |               |                    Marine MC |      87       |       87       |      93       |                              |               |                |               |                    Other MC  |      39       |       20       |      32       |           -------------------+---------------+----------------+---------------+Free Cash FlowAfter  the payment of  $16 million in  interest expenses during  the quarter andCapex, free cash flow was negative at $(30) million.Third Quarter 2013 Comparisons with Third Quarter 2012                                       |             |              |Consolidated Income Statements     |Third Quarter|Second Quarter|Third Quarter                                   |             |              |                                       |    2012     |              |                                   |             |     2013     |    2013                                   |             |              |In million $                       |             |              |-----------------------------------+             +--------------+--------------Exchange rate euro/dollar          |    1.249    |    1.296     |    1.320-----------------------------------+-------------+--------------+--------------Operating Revenue                  |    855.0    |    1031.7    |    908.0-----------------------------------+-------------+--------------+--------------                          Equipment|    282.9    |    254.3     |    222.7-----------------------------------+-------------+--------------+--------------                        Acquisition|    527.4    |    605.4     |    567.9-----------------------------------+-------------+--------------+--------------                                GGR|    239.6    |    366.9     |    298.1-----------------------------------+-------------+--------------+--------------                        Elimination|   (194.9)   |   (194.9)    |   (180.7)-----------------------------------+-------------+--------------+--------------Gross Margin                       |    195.1    |    237.9     |    194.1-----------------------------------+-------------+--------------+--------------Operating Income                   |    114.6    |    121.5     |    79.0-----------------------------------+-------------+--------------+--------------Equity from Investments            |    12.6     |    (4.5)     |    (5.8)-----------------------------------+-------------+--------------+--------------EBIT                               |    127.2    |    117.0     |    73.2-----------------------------------+-------------+--------------+--------------                          Equipment|    92.5     |     71.0     |    51.0-----------------------------------+-------------+--------------+--------------                        Acquisition|    36.5     |     28.0     |    42.2-----------------------------------+-------------+--------------+--------------                                GGR|    53.0     |     95.9     |    54.3-----------------------------------+-------------+--------------+--------------     Non-recurring items related to|     0.0     |    (10.8)    |   (21.4)                       Fugro (NFRI)|             |              |-----------------------------------+-------------+--------------+--------------         Corporate and eliminations|   (54.8)    |    (67.1)    |   (52.8)-----------------------------------+-------------+--------------+--------------EBIT before NRFI                   |    127.2    |    127.7     |    94.6-----------------------------------+-------------+--------------+--------------Net Financial Costs                |   (38.3)    |    (46.7)    |   (58.6)-----------------------------------+-------------+--------------+--------------Income Taxes                       |   (41.1)    |    (36.3)    |   (15.4)-----------------------------------+-------------+--------------+--------------Deferred     Tax     on    Currency|     0.2     |     1.7      |     4.7Translation                        |             |              |-----------------------------------+-------------+--------------+--------------Net Income                         |    48.0     |     35.7     |     3.9-----------------------------------+-------------+--------------+--------------Shareholder's Net Income           |    44.4     |     34.9     |     2.2-----------------------------------+-------------+--------------+--------------Earnings per share in $            |    0.28     |     0.20     |    0.01-----------------------------------+-------------+--------------+--------------Earnings per share in €            |    0.22     |     0.15     |    0.01-----------------------------------+-------------+--------------+--------------EBITDAs                            |    277.8    |    323.8     |    272.3-----------------------------------+-------------+--------------+--------------                          Equipment|    104.6    |     83.1     |    63.0-----------------------------------+-------------+--------------+--------------                        Acquisition|    91.1     |    120.6     |    114.8-----------------------------------+-------------+--------------+--------------                                GGR|    152.3    |    217.9     |    168.6-----------------------------------+-------------+--------------+--------------     Non-recurring items related to|     0.0     |    (9.6)     |    (1.6)                              Fugro|             |              |-----------------------------------+-------------+--------------+--------------         Corporate and eliminations|   (70.2)    |    (88.2)    |   (72.5)-----------------------------------+-------------+--------------+--------------Industrial Capex (including R&D    |    70.1     |     90.2     |    81.0capex)                             |             |              |-----------------------------------+-------------+--------------+--------------Multi-client Cash Capex            |    125.7    |    107.3     |    124.7-----------------------------------+-------------+--------------+--------------Year-to-Date 2013 Financial ResultsGroup  Total Revenue was $2.810 billion up 14% compared to 2012 with a strong H1ahead  of  expectations  and  a  tougher  Q3.  This  breaks down to 20% from theEquipment  division,  47% from  the  Acquisition  division  and 33% from the GGRdivision.Group EBITDAs was $909 million up 27% and representing a 32% margin. Before thenon-recurring impact of the Fugro Geoscience deal, Group EBITDAs was $880million.                                                |          |          |                                                | YTD 2012 | YTD 2013 |                                                |          |          |                                                |          |          |                                                |          |          |         In million $                           |          |          |        ----------------------------------------+----------+----------+         Group EBITDAs                          |   719    |   909    |        ----------------------------------------+----------+----------+            Margin                              |   29%    |   32%    |        ----------------------------------------+----------+----------+            Equipment                           |   334    |   227    |        ----------------------------------------+----------+----------+            Acquisition                         |   176    |   357    |        ----------------------------------------+----------+----------+            GGR                                 |   383    |   550    |        ----------------------------------------+----------+----------+            Eliminations                        |  (141)   |  (220)   |        ----------------------------------------+----------+----------+            Corporate Costs                     |   (33)   |   (34)   |        ----------------------------------------+----------+----------+            Non-recurring items linked to Fugro |    0     |    30    |        ----------------------------------------+----------+----------+Group  EBIT  was  $352.6  million  up  26%, a  margin  of 12.9%. Before the non-recurring  impact of the Fugro Geoscience deal, Group EBIT was $350.3 million, amargin of 12.5%:  * Facing  the $69 million net capital gain from SWOBS transaction ($85 million    capital gain reduced by the year-to-date negative contribution of the Seabed    Geosolutions  JV due to a slow start and operational issues on one project),    the  restructuring costs amounted $(66) million:  $(50) million in Q1, $(11)    million in Q2 and $(5) million in Q3. The NFRI were $3 million at the end of    September.  * Equipment  EBIT margin was at 26.3% showing  a strong resilience despite the    lower sales volume thanks to efficient cost management.  * Acquisition EBIT margin (before NRFI) was at 6.6% mainly due to an excellent    marine  production rate at  a record level  of 93%, while land was gradually    recovering in still challenging safety conditions.  * GGR  EBIT margin was at 25.0% driven by  a solid multi-client activity and a    strong  prefunding  rate  at  70%. The  performance  of Subsurface Imaging &    Reservoir  remained high with fair  market conditions. Reservoir and geology    activities  continued to  be solid  driven by  sustained demand  for complex    geologies projects.                                               | YTD 2012 |          |                                               |          | YTD 2013 |                                               |          |          | In million $                                  |          |          |-----------------------------------------------+----------+----------+ Group EBIT                                    |   280    |   353    |-----------------------------------------------+----------+----------+    Margin                                     |   11%    |   13%    |-----------------------------------------------+----------+----------+    Equipment                                  |   300    |   191    |-----------------------------------------------+----------+----------+    Acquisition                                |    3     |   117    |-----------------------------------------------+----------+----------+    GGR                                        |   120    |   231    |-----------------------------------------------+----------+----------+    Eliminations                               |  (103)   |  (149)   |-----------------------------------------------+----------+----------+    Corporate Costs                            |   (39)   |   (41)   |-----------------------------------------------+----------+----------+    Non-recurring items linked to Fugro (NRFI) |    0     |    3     |-----------------------------------------------+----------+----------+Financial Charges were $157 million:  * The  cost of debt was $144 million,  while the total amount of interest paid    was $82 million  * Other  financial items  were negative  at $12  million including  $3 million    related  to additional bridge-loan  commitment fees and  the $6 million call    premium related to the 2016 High Yield Bond partial reimbursementTaxes were $77 million.Group Net Income was $119 million.After  minority interests, Net Income attributable to the owners of CGG was $114million/€87 million. EPS was positive at $0.64 (€0.49), up 56% year-on-year.Cash FlowCash  Flow from operations was $456 million including a $(284) million change inworking capital.Global Capex was $605 million over the first nine months of 2013.  * Industrial capex was $205 million  * Research & Development capex was $41 million  * Multi-client cash capex was $359 million                   |      |                   | YTD  | YTD                   | 2012 | 2013                   |      | In million $      |      |-------------------+------+------+ Capex             | 577  | 605  |-------------------+------+------+  Industrial       | 273  | 205  |-------------------+------+------+  R&D              |  21  |  41  |-------------------+------+------+ Multi-client Cash | 283  | 359  |                   |      |      |         Marine MC | 178  | 300  |                   |      |      |         Other MC  | 105  |  60  |-------------------+------+------+Free Cash FlowAfter  $82 million of interest paid during the first nine months and Capex, freecash  flow was negative  at $(222) million  and at $(174)  million excluding thecash impact of the NRFI, the same as 2012.Balance SheetDebt Management:As part of the company's proactive management of its debt, CGG accelerated inJuly the refinancing of its credit facilities by extending the debt maturityperiods:  * A five-year-$200-million credit facility was signed with a 4.4% interest    rate, notably to reimburse the 2013 tranche of our Fugro Vendor Loan  * The two existing $289m Revolving Credit Facilities expiring in    January/February  2014 were fully renewed with:      * A-$165-million US Revolving Credit Facility for a period of 5 years      * A-$325-million French Revolving Credit Facility for a period of three        years  and the potential for 2 year extensions  * CGG made an early repayment in August of $125 million of the 9.5% 2016 High    Yield Bond  * At the end of September, after full completion of the Fugro Geoscience's    transaction and repayment of the 2013 installment, the Fugro Vendor Loan    totaled €112.5 millionNet Debt to Equity Ratio:Group gross debt was $2.689 billion at the end of September 2013. Available cashwas $320 million and  Group net debt was $2.369 billion.Net debt to equity ratio, at the end of September 2013, was 51%.Year-to-Date 2013 Comparisons with Year-to-Date 2012                                                 |         |         |         Consolidated Income Statements         |   YTD   |   YTD   |                                                 |         |         |                                                 |  2012   |         |                                                |         |  2013   |                                                 |         |         |         In million $                           |         |         |         ----------------------------------------+         +---------+         Exchange rate euro/dollar              |  1.288  |  1.315  |         ----------------------------------------+---------+---------+         Operating Revenue                      | 2472.6  | 2810.4  |         ----------------------------------------+---------+---------+                                      Equipment |  915.9  |  727.7  |         ----------------------------------------+---------+---------+                                    Acquisition | 1376.7  | 1767.3  |         ----------------------------------------+---------+---------+                                            GGR |  658.4  |  924.6  |         ----------------------------------------+---------+---------+                                    Elimination | (478.4) | (609.2) |         ----------------------------------------+---------+---------+         Gross Margin                           |  511.5  |  628.1  |         ----------------------------------------+---------+---------+         Operating Income                       |  253.8  |  352.3  |         ----------------------------------------+---------+---------+         Equity from Investments                |  26.3   |   0.3   |         ----------------------------------------+---------+---------+         EBIT                                   |  280.1  |  352.6  |         ----------------------------------------+---------+---------+                                      Equipment |  299.7  |  191.1  |         ----------------------------------------+---------+---------+                                    Acquisition |   2.5   |  117.4  |         ----------------------------------------+---------+---------+                                            GGR |  120.2  |  230.9  |         ----------------------------------------+---------+---------+           Non-recurring items related to Fugro |   0.0   |   2.7   |         ----------------------------------------+---------+---------+                     Corporate and eliminations | (142.3) | (189.5) |         ----------------------------------------+---------+---------+         EBIT before NRFI                       |  280.1  |  350.3  |         ----------------------------------------+---------+---------+         Net Financial Costs                    | (114.2) | (156.6) |         ----------------------------------------+---------+---------+         Income Taxes                           | (87.3)  | (77.0)  |         ----------------------------------------+---------+---------+         Deferred Tax on Currency Translation   |   0.2   |  (0.3)  |         ----------------------------------------+---------+---------+         Net Income                             |  78.8   |  118.7  |         ----------------------------------------+---------+---------+         Shareholder's Net Income               |  65.6   |  113.8  |         ----------------------------------------+---------+---------+         Earnings per share in $                |  0.41   |  0.64   |         ----------------------------------------+---------+---------+         Earnings per share in €                |  0.32   |  0.49   |         ----------------------------------------+---------+---------+         EBITDAs                                |  718.6  |  909.4  |         ----------------------------------------+---------+---------+                                      Equipment |  334.0  |  227.3  |         ----------------------------------------+---------+---------+                                    Acquisition |  175.8  |  356.6  |         ----------------------------------------+---------+---------+                                            GGR |  382.8  |  550.0  |         ----------------------------------------+---------+---------+           Non-recurring items related to Fugro |   0.0   |  29.9   |         ----------------------------------------+---------+---------+                     Corporate and eliminations | (174.0) | (254.4) |         ----------------------------------------+---------+---------+         Industrial Capex (including R&D capex) |  294.3  |  246.0  |         ----------------------------------------+---------+---------+         Multi-client Cash Capex                |  283.1  |  359.2  |         ----------------------------------------+---------+---------+Capital Market Day  * CGG  will host  a capital  market day  on Thursday 17(th) December 2013 from    9:00 AM to 3:30 PM in Espace Cambon, 46 rue Cambon in Paris.Other Information  * An  English  language  conference  call  is  scheduled today Thursday 7(th)    November, 2013 at 10:00 AM (Paris time) - 9:00 AM (London time).To take part in the English language conference, simply dial five to ten minutesprior to the scheduled start time. US Toll Free                 1-877-317-6789 International call-in        1-412-317-6789 Replay                       1-877-344-7529 & 1-412-317-0088 Conference number (replay)   10024660You will be connected to the conference: "CGG Q3 2013 results".  * Copies of the presentation are posted on the Company website www.cgg.com and    can be downloaded.  * The conference call will be broadcast live on the CGG website www.cgg.com    and a replay will be available for two weeks thereafter.About CGG:CGG  (www.cgg.com) is a  fully integrated Geosciences  company providing leadinggeological,  geophysical  and  reservoir  capabilities  to  its  broad  base  ofcustomers  primarily from  the global  oil and  gas industry.  Through its threecomplementary   business   divisions  of  Equipment,  Acquisition  and  Geology,Geophysics  & Reservoir  (GGR), CGG  brings value  across all aspects of naturalresource exploration and exploitation.CGG  employs 9,800 people around  the world, all  with a Passion for Geosciencesand working together to deliver the best solutions to its customers.CGG is listed on the Euronext Paris SA (ISIN: 0000120164) and the New York StockExchange (in the form of American Depositary Shares. NYSE: CGG).Contacts:Group  CommunicationsChristophe BarniniTel: +33 1 64 47 38 11E-Mail: invrelparis@cgg.comInvestor RelationsCatherine LeveauTel: +33 1 64 47 34 89E-mail: invrelparis@cgg.comThe  information  included  herein  contains  certain forward-looking statementswithin the meaning of Section 27A of the securities act of 1933 and section 21Eof the Securities Exchange Act of 1934. These forward-looking statements reflectnumerous  assumptions  and  involve  a  number  of  risks  and  uncertainties asdisclosed  by the Company from  time to time in  its filings with the Securitiesand Exchange Commission. Actual results may vary materially.                                      CGG                       CONSOLIDATED FINANCIAL STATEMENTS                               Third Quarter 2013                      UNAUDITED CONSOLIDATED BALANCE SHEET                                             ----------------------------------                                                September    December 31, 2012                                                 30, 2013    (restated)( (1))                                             -----------------------------------Amounts in millions of U.S.$, unlessindicatedASSETSCash and cash equivalents                         319.8                  1,520.2Trade accounts and notes receivable, net        1,080.8                    888.7Inventories and work-in-progress, net             494.1                    419.2Income tax assets                                 120.4                    111.7Other current assets, net                         192.9                    139.6Assets held for sale, net                          10.9                    393.9Total current assets                            2,218.9                  3,473.3Deferred tax assets                               211.6                    171.4Investments and other financial assets, net        50.0                     53.7Investments in companies under equity method                                                  327.0                    124.5Property, plant and equipment, net              1,695.6                  1,159.5Intangible assets, net                          1,271.9                    934.9Goodwill, net                                   3,125.3                  2,415.5Total non-current assets                        6,681.4                  4,859.5TOTAL ASSETS                                    8,900.3                  8,332.8LIABILITIES AND EQUITYBank overdrafts                                     5.5                      4.2Current portion of financial debt                 207.3                     47.8Trade accounts and notes payable                  491.3                    505.5Accrued payroll costs                             234.4                    209.9Income taxes liability payable                     91.5                     97.0Advance billings to customers                      42.8                     36.0Provisions - current portion                       46.1                     21.0Other current liabilities                         272.7                    300.2Total current liabilities                       1,391.6                  1,221.6Deferred tax liabilities                          146.0                    106.0Provisions - non-current portion                  135.7                    123.5Financial debt                                  2,475.9                  2,253.2Other non-current liabilities                      40.1                     46.6Total non-current liabilities                   2,797.7                  2,529.3Common stock 301,810,588 shares authorizedand176,884,273 shares with a €0.40 nominal valueissued and outstanding at September 30, 2013and 176,392,225 at December 31, 2012               92.7                     92.4Additional paid-in capital                      3,180.3                  3,179.1Retained earnings                               1,278.3                  1,190.6Other  reserves                                  (18.7)                   (27.8)Treasury shares                                  (20.6)                   (20.6)Net income (loss) for the period attributableto the owners of CGG                              113.8                     75.2Cumulative income and expense recognizeddirectly in equity                                (7.4)                    (7.6)Cumulative translation adjustment                 (2.5)                      1.9Equity attributable to owners of CGG            4,615.9                  4,483.2Non-controlling interests                          95.1                     98.7Total equity                                    4,711.0                  4,581.9TOTAL LIABILITIES AND EQUITY                                                8,900.3                  8,332.8*  Starting January 1, 2013, CGG  applies IAS19 revised  - Employee benefits. Asthe  application of  this new  standard is  a change  of accounting  policy, allcomparative  financial  information  has  been  restated  to present comparativeamounts  for each period  presented as if  the new accounting  policy had alwaysbeen  applied.  The adjustments resulting from the immediate recognition of pastservices  costs were  as follows  as of  December 31, 2012: Increase in employeebenefit  liability  of  U.S.$15.9  million,  decrease  in  retained  earnings ofU.S.$(10.0)  million  and  decrease  in   deferred  tax  liability of U.S.$(5.9)million.             UNAUDITED INTERIM CONSOLIDATED STATEMENT OF OPERATIONS                                           Nine months ended                                             September 30,                                      ------------------------------------------                                            2013        2012 (restated)( (4))                                      ------------------------------------------Amounts in millions of U.S.$, exceptper share data or unless indicatedOperating revenues                           2,810.4                2,472.6Other income from ordinary activities                                                 1.5                    2.7Total income from ordinary activities                                             2,811.9                2,475.3Cost of operations                         (2,183.8)              (1,963.8)Gross profit                                   628.1                  511.5Research and development expenses, net                                              (84.1)                 (65.4)Marketing and selling expenses                (94.4)                 (68.7)General and administrative expenses          (161.3)                (136.4)Other revenues (expenses), net                  64.0                   12.8Operating income                               352.3                  253.8Expenses related to financial debt           (145.6)                (117.5)Income provided by cash and cashequivalents                                      1.4                    2.0Cost of financial debt, net                  (144.2)                (115.5)Other financial income (loss)                 (12.4)                    1.3Income (loss) of consolidatedcompanies before income taxes                  195.7                  139.6Deferred taxes on currency translation                                               (0.3)                    0.2Other income taxes                            (77.0)                 (87.3)Total income taxes                            (77.3)                 (87.1)Net income (loss) from consolidatedcompanies                                      118.4                   52.5Share of income (loss) in companiesaccounted for under equity method                0.3                   26.3Net income (loss)                              118.7                   78.8Attributable to :Owners of CGG                          $       113.8                   65.6Owners of CGG((1))                     €        86.6                   51.0Non-controlling interests              $         4.9                   13.2Weighted average number of sharesoutstanding                              176,673,792            158,733,524Dilutive potential shares from stock-options                                      558,049                685,906Dilutive potential shares fromperformance share plan                       611,140                680,745Dilutive potential shares fromconvertible bonds                                (2)                    (2)Dilutive weighted average number ofshares outstanding adjusted whendilutive                                 177,842,981            160,100,175Net income (loss) per shareBasic                                  $        0.64             0.41 ((3))Basic ((1))                            €        0.49             0.32 ((3))Diluted                                $        0.64             0.41 ((3))Diluted ((1))                          €        0.49             0.32 ((3)) 1. Converted  at the average exchange rate of U.S.$1.3148 and U.S.$1.2878 per €    for the periods ended September 30, 2013 and 2012, respectively 2. Convertible  bonds  had  an  accretive  effect;  as a consequence, potential    shares  linked  to  those  instruments  were  not  taken into account in the    dilutive  weighted average number of shares or in the calculation of diluted    income per share. 3. As  a  result  of  the  capital  increase  of CGG in 2012 via an offering of    preferential  subscription rights to  existing shareholders, the calculation    of  basic  and  diluted  earnings  per  shares  for  2012 has  been adjusted    retrospectively.  Number of ordinary shares outstanding has been adjusted to    reflect the proportionate change in the number of shares. 4. Restatement related to IAS19 revised.             UNAUDITED INTERIM CONSOLIDATED STATEMENT OF OPERATIONS                                          Three months ended                                            September 30,                                     -------------------------------------------                                           2013         2012 (restated)( (4))                                     -------------------------------------------Amounts in millions of U.S.$, exceptper share data or unless indicatedOperating revenues                            908.0                   855.0Other income from ordinaryactivities                                      0.4                     0.6Total income from ordinaryactivities                                    908.4                   855.6Cost of operations                          (714.3)                 (660.5)Gross profit                                  194.1                   195.1Research and development expenses,net                                          (33.1)                  (20.9)Marketing and selling expenses               (31.5)                  (22.1)General and administrative expenses          (56.1)                  (44.3)Other revenues (expenses), net                  5.6                     6.8Operating income                               79.0                   114.6Expenses related to financial debt           (51.5)                  (38.8)Income provided by cash and cashequivalents                                     0.4                     0.6Cost of financial debt, net                  (51.1)                  (38.2)Other financial income (loss)                 (7.5)                   (0.1)Income (loss) of consolidatedcompanies before income taxes                  20.4                    76.3Deferred taxes on currencytranslation                                     4.7                     0.2Other income taxes                           (15.4)                  (41.1)Total income taxes                           (10.7)                  (40.9)Net income (loss) from consolidatedcompanies                                       9.7                    35.4Share of income (loss) in companiesaccounted for under equity method             (5.8)                    12.6Net income (loss)                               3.9                    48.0Attributable to :Owners of CGG                         $         2.2                    44.4Owners of CGG((1))                    €         1.7                    34.8Non-controlling interests             $         1.7                     3.6Weighted average number of sharesoutstanding                             176,878,535             158,794,301Dilutive potential shares from stock-options                                     521,919                 810,629Dilutive potential shares fromperformance share plan                      611,140                 680,746Dilutive potential shares fromconvertible bonds                               (2)                     (2)Dilutive weighted average number ofshares outstanding adjusted whendilutive                                178,011,594             160,285,676Net income (loss) per shareBasic                                 $        0.01              0.28 ((3))Basic ((1))                           €        0.01              0.22 ((3))Diluted                               $        0.01              0.28 ((3))Diluted ((1))                         €        0.01              0.22( (3))______________ 1. Corresponding to the nine month amount in euros less the half-year amount in    euros. 2. Convertible  bonds  had  an  accretive  effect;  as a consequence, potential    shares  linked  to  those  instruments  were  not  taken into account in the    dilutive  weighted average number of shares or in the calculation of diluted    income per share. 3. As  a  result  of  the  capital  increase  of CGG in 2012 via an offering of    preferential  subscription rights to  existing shareholders, the calculation    of  basic  and  diluted  earnings  per  shares  for  2012 has  been adjusted    retrospectively.  Number of ordinary shares outstanding has been adjusted to    reflect the proportionate change in the number of shares. 4. Restatement related to IAS19 revised.                    UNAUDITED ANALYSIS BY OPERATING SEGMENTWe  previously reported  our results  on the  basis of two segments: GeophysicalServices  and  Geophysical  Equipment.  As  a  result  of the acquisition of theFugro's  Geoscience Division,  we changed  our organization,  as well as the waymanagement  measures  our  performance.  Since  February  1, 2013, we  have beenorganized in three Divisions:  * Acquisition segment, which comprises the following business lines:-    Marine acquisition:  seismic data acquisition  offshore undertaken by us onbehalf of a specific client;-   Land and Airborne: other seismic data acquisition undertaken by us on behalfof a specific client;  * Geology,   Geophysics  &  Reservoir  ("GGR")  segment  which  comprises  the    following business lines:-    Multi-clients, basin data and  Data Management: seismic and geological dataundertaken  by us and licensed  to a number of  clients on a non-exclusive basisand data management services;-       Imaging and  Reservoir: processing  and imaging  of geophysical data andreservoir characterization.  * Equipment   segment,   which   we  conduct  through  Sercel,  comprises  our    manufacturing  and  sales  activities  for  seismic  equipment used for data    acquisition, both on land and marine.Financial  information by  segment is  reported in  accordance with our internalreporting  system and provides internal segment  information that is used by thechief operating decision maker to manage and measure the performance.We also changed our main performance indicator from operating income to earningsbefore  interest and tax ("EBIT").  We define EBIT as  operating income plus ourshare of income in companies accounted for under the equity method. EBIT is usedby  management as performance indicator because  it captures the contribution toour  results of  the significant  businesses that  we manage  through our joint-ventures.Prior period segment disclosure has been restated to reflect the new segments.                    Nine months ended September 30(th)  2013            ----------------------------------------------------------------------------------------------------                                       2013                                         2012 (restated)            -------------------------------------------------- -------------------------------------------------In millionsof U.S.$,except for   Acqui-          Equip- Eliminations Consolidated   Acqui-          Equip- Eliminations Consolidatedassets and   sition    GGR    ment      and         Total       sition    GGR    ment      and         Totalcapital                                Other                                              Otheremployed inbillions ofU.S.$            -------------------------------------------------- -------------------------------------------------Revenuesfromunaffiliatedcustomers    1,321.0   924.6  564.8            -      2,810.4   1,106.0   658.4  708.2            -      2,472.6Inter-         446.3       -  162.9      (609.2)            -     270.7       -  207.7      (478.4)            -segmentrevenuesOperating    1,767.3   924.6  727.7      (609.2)      2,810.4   1,376.7   658.4  915.9      (478.4)      2,472.6revenuesDepreciationandamortization(excludingmulti-clientsurveys)             (258.2)  (47.1) (34.5)            -     (339.8)    (193.6)  (26.9) (32.1)            -      (252.6)Depreciationandamortizationof multi-clientsurveys            - (270.2)      -            -      (270.2)         - (237.5)      -            -      (237.5)Share ofincome incompaniesaccountedfor underequitymethod  (1)                15.0     0.9      -       (15.6)          0.3      22.3     4.0      -            -         26.3Earningsbeforeinterest andtax (2)               117.4   230.9  191.1      (186.8)        352.6       2.5   120.2  299.7      (142.3)        280.1Capitalexpenditures(excludingmulti-clientsurveys)(3)            175.7    34.7   35.6        (9.3)        236.7     250.3    22.8   21.1        (3.7)        290.5Investmentsin multi-clientsurveys, netcash               -   359.2      -            -        359.2         -   283.1      -            -        283.1Capitalemployed (4)                 3.4     2.8    0.9            -          7.1       3.1     1.8    0.7            -          5.6Total assets(4)                 4.0     3.1    1.1          0.3          8.5       3.4   1.9      1.0          0.5          6.8            ---------------------------------------------------------------------------------------------------- (1)         Operational results of  companies accounted for under equity methodwere  U.S.$(0.9)  million  and  U.S.$36.4  million  for  the  nine  months endedSeptember 30, 2013 and 2012, respectively.(2)        GGR EBIT for the nine months ended September 30, 2013 includes a gainof U.S.$19.8 million related to the sale of the  Company's shareholding interestin Spectrum ASA.For  the nine months ended  September 30, 2013, "eliminations and other" includegeneral  corporate  expenses  of  U.S.$(41.4)  million,  U.S.$(148.1) million ofintra-group  margin and U.S.$2.7  million of non-recurring  items related to the Fugro  Geosciences'  transaction  including:  (i)  a  gain of U.S.$84.5 millionrelated  to contribution  of shallow-water  and OBC  assets to our Seabed joint-venture  with Fugro; offset by (ii) share  of income of our Seabed joint-ventureof  US  $  (15.6)  million;  (iii)  restructuring  costs,  net  of  reversal  ofprovisions,  of U.S.$(33.9) million mainly related  to the acquired vessels fromFugro; and (iv) acquisition and integration costs of U.S.$(32.3) million.(3)            Capital  expenditures  include  capitalized  development costs ofU.S.$41.0  million and  U.S.$21.0 million  for the  nine months  ended September30, 2013 and 2012, respectively.(4)   Based on a preliminary Fugro purchase price allocation.Three months ended September 30,            ------------------------------------------------------------------------------------------------                                     2013                                        2012 (restated)            ------------------------------------------------ -----------------------------------------------In millionsof U.S.$,except for   Acqui-        Equip- Eliminations Consolidated   Acqui-        Equip- Eliminations Consolidatedassets and   sition  GGR    ment      and         Total       sition  GGR    ment      and         Totalcapital                              Other                                            Otheremployed inbillions ofU.S.$            ------------------------------------------------ -----------------------------------------------Revenuesfromunaffiliatedcustomers     423.0  298.1  186.9            -        908.0    394.3  239.6  221.1            -        855.0Inter-segmentrevenues      144.9      -   35.8      (180.7)            -    133.1      -   61.8      (194.9)            -Operatingrevenues              567.9  298.1  222.7      (180.7)        908.0    527.4  239.6  282.9      (194.9)        855.0Depreciationandamortization(excludingmulti-clientsurveys)             (83.6) (17.0) (11.5)            -      (112.1)   (63.9)  (7.5) (11.2)            -       (82.6)Depreciationandamortizationof multi-clientsurveys           - (96.2)      -            -       (96.2)        - (92.6)      -            -       (92.6)Share ofincome incompaniesaccountedfor underequitymethod  (1)                9.9  (0.1)      -       (15.6)        (5.8)     11.2    1.4      -            -         12.6Earningsbeforeinterest andtax (2)               42.2   54.3   51.0       (74.3)         73.2     36.5   53.0   92.5       (54.8)        127.2Capitalexpenditures(excludingmulti-clientsurveys)(3)            53.7   11.2   16.1        (2.3)         78.7     53.3    7.3    9.4          7.3         77.3Investmentsin multi-clientsurveys, netcash              -  124.7      -            -        124.7        -  125.7      -            -        125.7 1. Operational  results  of  companies  accounted  for under equity method were    U.S.$(5.7)  million  and  U.S.$15.7  million  for  the  three  months  ended    September 30, 2013 and 2012, respectively. 2. For  the  three  months  ended  September 30, 2013, "eliminations and other"    include  general  corporate  expenses  of  U.S.$(12.2)  million, U.S.$(40.7)    million of intra-group margin and U.S.$(21.4) million of non-recurring items    related  to the Fugro Geosciences' transaction: (i) restructuring costs, net    of  reversal  of  provisions,  of  U.S.$3.4  million related to the acquired    vessels  from Fugro; (ii) acquisition costs of U.S.$(9.2) million; and (iii)    share of income of our Seabed joint-venture of U.S.$(15.6) million.                For the three months ended September 30, 2012, general corporateexpenses amounted to U.S.$13.0 million. 3. Capital  expenditures  include  capitalized  development  costs of U.S.$16.5    million  and U.S.$6.9 million for the three months ended September 30, 2013    and 2012, respectively.             UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS                                                     Nine months ended September                                                                 30,                                                    ----------------------------                                                         2013          2012                                                                   (restated)(                                                                       (1))                                                    ----------------------------            Amounts in millions of U.S.$OPERATINGNet income (loss)                                          118.7            78.8Depreciation and amortization                              339.8           252.6Multi-client surveys depreciation and amortization         270.2           237.5Depreciation and amortization capitalized to multi-client surveys                                            (68.4)          (40.6)Variance on provisions                                      12.2           (4.1)Stock based compensation expenses                           15.5            15.3Net gain (loss) on disposal of fixed assets               (96.9)          (13.0)Equity income (loss) of investees                          (0.3)          (26.3)Dividends received from affiliates                          10.0            22.1Other non-cash items                                         4.6             4.0Net cash including net cost of financial debt andincome tax                                                 605.4           526.3Less net cost of financial debt                            144.2           115.5Less income tax expense                                     77.3            87.1Net cash excluding net cost of financial debt andincome tax                                                 826.9           728.9Income tax paid                                           (86.2)         (122.8)Net cash before changes in working capital                 740.7           606.1- change in trade accounts and notes receivable           (66.6)          (77.7)- change in inventories and work-in-progress              (44.4)          (52.3)- change in other current assets                            27.9           (3.5)- change in trade accounts and notes payable             (165.7)            23.2- change in other current liabilities                     (33.0)          (31.1)Impact of changes in exchange rate on financialitems                                                      (2.6)             2.2Net cash provided by operating activities                  456.3           466.9INVESTINGCapital expenditures (including variation of fixedassets suppliers, excluding multi-client surveys)        (236.7)         (290.5)Investment in multi-client surveys, net cash             (359.2)         (283.1)Proceeds from disposals of tangible and intangibleassets                                                       4.9             3.3Total net proceeds from financial assets                    33.7            35.4Acquisition of investments, net of cash and cashequivalents acquired                                     (939.9)          (52.5)Impact of changes in consolidation scope                       -               -Variation in loans granted                                   3.9             0.4Variation in subsidies for capital expenditures            (1.5)           (1.2)Variation in other non-current financial assets                                                             0.8           (1.4)Net cash used in investing activities                  (1,494.0)         (589.6)FINANCINGRepayment of long-term debts                             (466.3)          (50.8)Total issuance of long-term debts                          385.2            79.2Lease repayments                                          (11.9)          (19.5)Change in short-term loans                                   0.5           (2.0)Financial expenses paid                                   (82.0)          (68.5)Net proceeds from capital increase- from shareholders                                          1.3             2.0- from non-controlling interests of integratedcompanies                                                      -               -Dividends paid and share capital reimbursements- to shareholders                                              -               -- to non-controlling interests of integratedcompanies                                                  (7.5)           (5.6)Acquisition/disposal from treasury shares                      -               -Net cash provided by (used in) financing activities                                                         (180.7)          (65.2)Effects of exchange rates on cash                           18.0           (6.4)Net increase (decrease) in cash and cashequivalents                                            (1,200.4)         (194.3)Cash and cash equivalents at beginning of year                                                         1,520.2           531.4Cash and cash equivalents at end of period                 319.8           337.1 1. Restatement related to IAS19 revised.CGG - Third Quarter 2013 Results: http://hugin.info/142000/R/1741251/584983.pdf[HUG#1741251]

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