Multi-view Inc

CGG Announces its Q2 2021 Results Soft quarterly revenue Recovery anticipated in H2 Asset monetization progressing as planned PARIS, France – July 28, 2021 – CGG (ISIN: FR0013181864), a world leader in Geoscience, announced today its second quarter 2021 non-audited results. Commenting on these results, Sophie Zurquiyah, CGG CEO, said: “During the first half of the year, the oil price environment has become more favorable. However, this has not translated yet into increase in geoscience-related spending by our customers. Considering the lack of investments by E&P companies, the need to increase spending, to better understand the subsurface and develop new opportunities, has continued to grow. Among our three businesses, Multi-client has been the most affected by the spending delays. Looking forward, following the soft first half of the year, activity is expected to strengthen in the second half of 2021 and onwards. With its high-end Geoscience and Equipment technologies, and superior quality Multi-client data in the world’s most attractive basins, CGG is well positioned to provide our clients with the solutions they require to increase the effectiveness of their activities, while meeting their ESG goals. In this environment, technology innovation, business diversification, and cash generation, remain our top priorities.” Key Figures - Second Quarter 2021 Key Figures – First half 2021 Key Segment Figures - Second Quarter 2021 Key Segment Figures – First half 2021 Key figures bridge: Segment to IFRS - Second Quarter 2021 Key figures bridge: Segment to IFRS – First half 2021 Second Quarter 2021 Segment Financial Results Geology, Geophysics & Reservoir (GGR) GGR segment revenue was $110 million, down (24)% year-on-year. GGR segment EBITDAs was $55 million, a 50% margin, and GGR Adjusted* segment EBITDAs was $49 million, a 45% margin. GGR segment operating income was $15 million and GGR Adjusted* segment operating income was $7 million. GGR capital employed was stable at $1.6 billion at the end of June 2021. Equipment Equipment segment revenue was low as planned this quarter at $48 million, down (19)% year-on-year. Equipment segment EBITDAs was $(9) million and Equipment Adjusted* segment EBITDAs was $(8) million, a (17)% margin. Equipment segment operating income was $(16) million and Equipment Adjusted* segment operating income was $(16) million, a (33)% margin. Equipment capital employed increased to $0.5 billion at the end of June 2021. Second Quarter 2021 Financial Results Segment revenue was $157 million, down (22)% year-on-year. The respective contributions from the Group’s businesses were 46% from Geoscience, 24% from Multi-Client (70% for the GGR segment) and 30% from Equipment. Segment EBITDAs was $42 million and Adjusted* segment EBITDAs was $35 million, down (53)% year-on-year, a 22% margin due to the unfavorable business mix. Segment operating income was $(7) million and Adjusted* segment operating income was $(15) million. IFRS 15 adjustment at operating income level was $6million and IFRS operating income, after IFRS 15 adjustment, was $(1) million. Cost of financial debt was $(33) million. The total amount of interest paid during the quarter was $(30) million. Other Financial Items were at $(4) million. Taxes were at $(7) million. Net loss from continuing operations was $(44) million. Group net loss was $(51) million. After minority interests, Group net loss attributable to CGG shareholders was $(50) million/ €(42) million. Second Quarter 2021 Cash Flow Segment Operating Cash Flow was $54 million, a (33)% decrease. Total capex was $(57) million: Segment Free Cash Flow was $(3)million After $(15) million lease repayments, $(30) million paid cost of debt, $(8) million 2021 Plan cash costs and $0 million free cash flow from discontinued operations, Net Cash Flow was $(56) million. Refinancing impact on cash flow was $(67) million, including $(39) million refinancing fees and call premiums, and $(28) million net reduction in principal. First Half 2021 Financial Results Segment revenue was $370 million, down 22% compared to H1 2020. The respective contributions from the Group’s businesses were 38% from Geoscience, 19% from Multi-Client (57% for the GGR segment) and 43% from Equipment. GGR segment revenue was $210 million, down (38)% year-on-year After-sales were $39 million, down (38)%. Equipment revenue was $161 million, up 21% year-on-year. Segment EBITDAs was $78 million, down (59)% year-on-year, a low 21% margin. GGR EBITDA margin was low at 40% and Equipment EBITDA margin at 4%. Segment operating income was $(18) million. IFRS 15 adjustment at operating income level was $3 million and IFRS operating income, after IFRS 15 adjustment, was $(15) million. Cost of financial debt was $(68) million. The total amount of interest paid during H1 was $(36) million. Other Financial Items were $(42) million, including $(39) million of fees related to the refinancing. Taxes were at $(12) million. Net income from continuing operations was $(136) million. Group net loss was $(132) million. After minority interests, H1 2021 Group loss attributable to CGG’s shareholders was $(133) million / €(110) million. Cash Flow Segment Operating Cash Flow was $159 million compared to $226 million for the first half of 2020, a (30)% decrease. Capex was $(99) million, down (44)% year-on-year, Segment Free Cash Flow was at $57 million up 16% year-on-year. After the payment of interest expenses of $(36) million, lease repayments of $(29) million, CGG 2021 Plan cash costs of $(19) million and neutral free cash flow from discontinued operations, Group Net Cash Flow was $(27) million, compared to $(60) million for the first half of 2020. Refinancing impact on cash flow was $(67) million, including $(39) million refinancing fees and call premiums, and $(28) million net reduction in principal. Balance Sheet Group’s liquidity amounted to $385 million at the end of June 30, 2021 and cash liquidity of $285m after reducing gross debt by $28m as part of refinancing. Group gross debt before IFRS 16 was $1,220 million at the end of June 30, 2021 and net debt was $935 million. Group gross debt after IFRS 16 was $1,355 million at the end of June 30, 2021 and net debt was $1070 million. Segment leverage ratio of Net debt to Adjusted segment EBITDAs was 3.9x at the end of June 2021. Q2 2021 Conference call An English language analysts’ conference call is scheduled today at 8:00 am (Paris time) – 7:00 am (London time) To follow this conference, please access the live webcast: A replay of the conference will be available via webcast on the CGG website at: . For analysts, please dial the following numbers 5 to 10 minutes prior to the scheduled start time: About CGG CGG () is a global geoscience technology leader. Employing around 3,700 people worldwide, CGG provides a comprehensive range of data, products, services and solutions that support our clients to more efficiently and responsibly solve complex natural resource, environmental and infrastructure challenges. CGG is listed on the Euronext Paris SA (ISIN: 0013181864). Contacts CONSOLIDATED FINANCIAL STATEMENTS June 30, 2021 Unaudited Interim Consolidated statements of operations Unaudited Consolidated statements of financial position Unaudited Consolidated statements of cash flows Attachment