CGG : First Quarter 2006 Results
11 Mai 2006 - 7:03AM
PR Newswire (US)
Excellent Quarter in a Further Strengthening Market PARIS, May 11
/PRNewswire-FirstCall/ -- Compagnie Generale de Geophysique (ISIN:
0000120164 - NYSE: GGY) published today its unaudited consolidated
results for the first quarter of 2006. Q1 2006 highlights: - First
quarter 2006 Group revenues of Euros 322 million (USD 384 million),
up 66% in Euros and up 49% in USD compared to the first quarter of
2005. - Group operating result of Euros 85 million, a 26% operating
margin, compared to Euros 15 million in Q1 2005. - Geophysical
Services: Revenues of Euros 230 million (USD 274 million), up 95%
in Euros and up 76% in USD compared to the first quarter of 2005
and operating income of Euros 62 million, representing a 27%
operating margin. - Sercel: Revenues of Euros 122 million (USD 145
million), up 51% in Euros and up 36% in USD compared to the first
quarter of 2005 and operating income of Euros 29 million
representing a 24% operating margin. - Group net result of Euros 59
million compared to a net result of Euros 6 million in Q1 2005,
before respectively Euros 12 million and Euros 15 million specific
charges related to the IFRS specific accounting treatment of the
2004 convertible bond. - Group backlog of USD 975 million as of May
1st 2006, a 100% increase year on year. Comments and Perspectives :
CGG Chairman & CEO, Robert Brunck, commented: "We benefited in
this first quarter from a strong operating performance of both
Sercel and Services, particularly in marine with an exceptional
level of multi-client sales and an optimal utilization rate of our
vessels. Given this strong beginning of the year compounded by a
continued healthy geophysical market, which should grow by more
than 20% in 2006, CGG should be in a position to reach as early as
2006 the financial targets initially set for 2007". Consolidated
Statement of Earnings Million Euros IFRS Q1 2006 Q1 2005 Operating
revenues 322.1 194.4 Gross profit 120.4 42.1 Operating profit
(loss) 84.5 15.5 Equity in income (loss) of affiliates 2.7 3.8 Cost
of financial debt (7.0) (5.4) Variance on derivative on convertible
bonds (CB) (12.4) (15.0) Other financial income (loss) (1.7) 0.7
Income Taxes (19.6) (8.3) Net income before variance on derivative
of CB 58.9 6.3 Variance on derivative of the convertible bonds
(12.4) (15.0) Net income 46.5 (8.7) Net income (loss) per share /
diluted in Euros 2.64 (0.75) Weighted average number of shares
outstanding 17,118,524 11,742,580 Revenues: At Euros 322.1 million
(USD 384 million), Group revenues for the first quarter of 2006
were up 66% in Euros and 49% in USD compared to the first quarter
of 2005. Revenues per segment: Total revenues for Geophysical
Services for the first quarter 2006 stood at Euros 229.6 million
(USD 273.7 million), up 95% in Euros and 76% in USD compared to the
first quarter of 2005. Land revenues were Euros 33.4 million (USD
39.8 million), up 48% in Euros and 33% in USD compared to the first
quarter of 2005. Offshore revenues were Euros 161.5 million (USD
192.6 million), up 128% in Euros and 105% in USD compared to the
first quarter of 2005. Total revenues for multi-clients stood at
Euros 70.9 million (USD 84.6 million). Multi-client after-sales
were Euros 60.3 million (USD 71.9 million), 3 times more than in
the first quarter 2005. The net book value of the offshore seismic
data library at the end of March 2006 stood at Euros 84.2 million.
Processing and Reservoir revenues were Euros 34.7 million (USD 41.4
million), up 45% in Euros and 30% in USD compared to the first
quarter of 2005. For the first quarter 2006, Sercel total sales
were Euros 121.5 million (USD 144.8 million), up 51 % in Euros and
36% in USD, compared to the same period last year. External sales
for the third quarter of 2006 were Euros 92.5 million (USD 110.3
million). Operating Income: Group operating profit for the first
quarter of 2006 was Euros 84.5 million representing a 26.2%
operating margin, compared to a Euros 15.5 million operating profit
for the first quarter 2005 and a 8% operating margin. This
operating profit does not take into account the Euros 2.7 million
contribution from Argas. The Geophysical Services operating profit
for the first quarter of 2006 was Euros 62.0 million representing a
27,0% operating margin compared to a Euros 1.6 million operating
profit for the first quarter of 2005. During this quarter, 12 crews
were in operation and the land acquisition strategic business unit
has been profitable before the Argas contribution. The positioning
of this activity in the Middle East was strengthened with the
signature of a regional Joint Venture with our long-term partner in
Argas. In marine acquisition, our vessel utilisation rate was high
with limited transit and four of our vessels operating offshore
India. The C-Orion was commissioned mid February and is now
operating in an eight Sercel Seal streamers configuration. The
Geo-Challenger will be operational mid May in a twelve Sercel
Sentinel solid streamers configuration. The demand in multi-clients
surveys was exceptionally high, especially in the Gulf of Mexico in
preparation for the lease sale, which took place in March. CGG
opened a new dedicated processing center in Mumbai during the
quarter, increasing the total number of processing centers
worldwide to 30. Sercel operating profit for the first quarter of
2006 was Euros 29.3 million, representing a 24.2 % operating margin
compared to Euros 15.7 million for the first quarter 2005, and a
19.5% operating margin. This first quarter was characterized by a
sustained demand for land equipment and by a strong increase in
deliveries of marine equipments. Sercel has reinforced its leading
position particularly as the provider of offshore acquisition
systems and associated streamers to a large base of clients.
Segment information Million Euros IFRS Q1 2006 Q1 2005 Operating
revenues Services 229.9 117.6 Products 121.5 80.6 Elimination
(29.3) (3.8) Total 322.1 194.4 Operating profit (loss) Services
62.0 1.6 Products 29.3. 15.7 Corporate & Elimination (6.8)
(1.9) Total 84.5 15.4 Net Result: The Group net result for the
first quarter of 2006 showed a profit of Euros 58.9 million before
a Euros 12.4 million specific financial charge for the variance on
derivative of the 2004 convertible bonds. The Group net result
stood at Euros 46.5 million compared to Group net loss of Euros 8.7
million for the first quarter 2005. An option, exercisable on the
day of May 12, 2006, to convert the bonds with right to a cash
payment, will be submitted to the approval of the general meeting
of CGG shareholders to be held today. Group Net Result Millions
Euros IFRS Q1 2006 Q1 2005 Net income before variance on derivative
of CB 58.9 6.3 Variance on derivative of the convertible bonds (CB)
(12.4) (15.0) Net income (loss) 46.5 (8.7) Operating Result Before
Depreciation and Amortization : The Operating Result Before
Depreciation and Amortization, "ORBDA", previously denominated
"Adjusted EBITDA" in our former financial reports is defined as
operating income (loss) excluding non-recurring revenues (expenses)
plus depreciation, amortization and additions (deductions) to
valuation allowances of assets and add-back of dividends received
from equity companies. The ORBDA for the first quarter 2006 was
Euros 131.3 million, representing 40.7% of revenues and a 162%
increase year on year. ORBDA Millions Euros IFRS Q1 2006 Q1 2005
ORBDA 131.3 50.1 Summary of cash-flows: Cash Flows Million Euros
IFRS Q1 2006 Q1 2005 Net Cash before change in working capital
116.5 47.9 Net Cash provided by operating activities 82.2 17.8
Total purchases of tangible and intangible assets (56.1) (13.7)
Investment in multi-clients surveys (10.4) (6.3) Balance Sheet
items : As of March 31st 2006, net equity stood at Euros 744.1
million and net debt at Euros 269.4 million, representing a 36.2%
gearing ratio. Equity and Net Debt Million Euros IFRS 31/03/2006
31/12/2005 Shareholders' equity 744.1 698.5 Net debt 269.4 297.2
Gearing ratio 36.2% 42.4% Backlog : The backlog as of May 1st 2006
stood at USD 975 million, up 100% compared to May 1st 2005.
Contact: Christophe BARNINI, (+33)-1-64-47-38 -10/38-11 The
information included herein contains certain forward-looking
statements within the meaning of Section 27A of the securities act
of 1933 and section 21E of the Securities Exchange Act of 1934.
These forward-looking statements reflect numerous assumptions and
involve a number of risks and uncertainties as disclosed by the
Company from time to time in its filings with the Securities and
Exchange Commission. Actual results may vary materially. The
Compagnie Generale de Geophysique group is a global participant in
the oilfield services industry providing a wide range of seismic
data acquisition. processing and geoscience services and software
to clients in the oil and gas exploration and production business.
It is also a global manufacturer of geophysical equipment through
its subsidiary Sercel. - A detailed financial statement in French
and English is available on our website: http://www.cgg.com/ . -
Robert BRUNCK. Chairman and CEO, will comment on the results during
the shareholders meeting which will take place today at the maison
du barreau - 2 Rue Harlay - Paris 75001 - An English language
conference call is scheduled today at 4:00 p.m. (Paris time) - 9:00
am (US CT) 10:00 am (US ET). To take part in the English language
conference, simply dial ten to fifteen minutes prior to the
scheduled start time. - International call-in +1-(719)-457-2679 -
US call-in (800)-500-0177 - Replay +1-(719)-457-0820 &
(888)-203-1112 - pass code 7146920 You will be asked for the title
of the conference: "CGG Q1 2006 Results" and the name of the
Chairman of the Board of Directors: "Robert Brunck". - Slides of
the presentation for these conferences are posted on the company
web site and can be downloaded prior to the conference. - This
conference will be broadcast live on CGG's website
http://www.cgg.com/ and replays will be available for a month
thereafter. DATASOURCE: Compagnie Generale de Geophysique (CGG)
CONTACT: Contact: Christophe BARNINI, (+33)-1-64-47-38 -10/38-11
Copyright