Comp Gen Geophys (NYSE:GGY)
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Compagnie Generale de Geophysique First Quarter 2004 Results
Strong Improvement of the Net Result
PARIS, May 13 /PRNewswire-FirstCall/ -- Compagnie Generale de Geophysique
(ISIN: 0000120164 - NYSE: GGY) published today its consolidated results for the
first quarter of 2004.
Q1 2004 main events:
Revenues for the first quarter of 2004 are up 3% in Euros and up 20% in USD
compared the first quarter of 2003
Historically high quarterly revenues in dollars at Sercel, ($103M, euro 83M)
Improvement of the Group operating result to $12.6M compared to euro 3.4M in Q1
2003 despite a negative euro/$ exchange rate effect estimated at euro 12M.
Sercel operating income of euro 21.3M representing a 26% operating margin.
Q1 profit of euro 6.1M compared to a net loss of euro 5.5M in Q1 2003.
40% year on year backlog's growth.
Consolidated Statement of Earnings
(non audited)
Million of Euros Period ended March 31st
2004 2003
Operating revenues 161.8 156.7
Operating profit (loss) 12.6 3.4
Income (loss) from equity investments 2.1 3.0
Goodwill depreciation (2.0) (1.5)
Net interest expenses (6.3) (8.4)
Exchange gains (losses) 4.6 0.8
Income taxes (4.9) (2.7)
Minority interest (0.1)
Net income (loss) 6.1 (5.5)
Earnings per share (Euros) 0.52 (0.47)
Revenues:
At Euros 162 million (USD 202 million), revenues for the first quarter of 2004
were up 3% in Euros and 20% in USD compared to Euros 157 million (USD 168
million) for the first quarter of 2003.
Total revenues for Geophysical Services for the first quarter 2004 were Euros
83 million (USD 104 million), down 34% in Euros and 23% in USD compared to
Euros 125 million (USD 134 million) for the first quarter of 2003.
The Land activity saw its total sales for the first quarter 2004 decreased by
52% in Euros and 44% in dollars to Euros 25 million (USD 31 million) compared
to Euros 51 million (USD 55 million) for the first quarter of 2003. On average,
9 crews were in operation across the period, compared to 14 last year. During
this quarter, the land acquisition SBU operated in line with the economical
targets of its restructuring plan.
The Offshore revenues at Euros 35 million (USD 44 million) for the first
quarter 2004, were down 25% in Euros and 12% in dollars compared to Euros 46
million (USD 50 million) for the first quarter of 2003, reflecting in
particular a low level of prices in the exclusive offshore acquisition market.
During the quarter, the vessels were operating at 60% on exclusive contracts
compared to 20% last year. The net book value of the offshore seismic data
library at the end of March 2004 was Euros 152 million, following Euros 16.8
million sales and Euros 18.0 million of investments in the quarter.
For the first quarter 2004, Processing and Reservoir revenues were Euros 23
million (USD 29 million), down 15 % in Euros and stable in USD compared to
Euros 28 million (USD 29 million) for the first quarter of 2003 in a market
where CGG maintained its positions.
For the first quarter 2004, Sercel total sales were Euros 83 million (USD 103
million), up 120 % in Euros and up 152% in USD, compared to Euros 38 million
(USD 41 million) for the first quarter of 2003. External sales for the first
quarter 2004 were Euros 79 million (USD 97 million). Within a growing
geophysical equipment market, Sercel reached a historically high quarterly
revenue level expressed in dollars resulting from strong land equipment
deliveries corresponding to orders booked at the end of 2003 and from a renewed
growth in the marine equipment market.
Operating Result:
The Group Operating Result for the first quarter 2004 was a Euros 12.6 million
profit compared to a Euros 3.4 million profit for the first quarter of 2003.
The increase in the operating margin results exclusively from the excellent
operating performance of Sercel. Despite an unfavourable euro/$ exchange rate
estimated at 4% of margin points, Sercel's operating profit for the first
quarter of 2004 was Euros 21.3 million, a 26% operating margin, compared to an
operating profit of Euros 5.2 million in Q1 2003. The Geophysical Services
operating result was a loss of Euros 7.3 million compared to a profit of Euros
1.2 million for the same period last year. This decrease of operating
performance is mainly due to the combined negative effect of the euro/$
exchange rate estimated at Euros 4 million and to low marine prices still
suffering from the sector's overcapacity.
Segment information
Million of Euros Period ended March 31st
2004 2003
Operating revenues
Services 83.9 125.7
Products 82.8 37.7
Elimination (4.9) (6.7)
Total 161.8 156.7
Operating profit (loss)
Services (7.3) 1.2
Products 21.3 5.2
Corporate (2.4) (2.7)
Elimination 1.0 (0.3)
Total 12.6 3.4
Operating Result Before Depreciation and Amortization :
The Operating Result Before Depreciation and Amortization, "ORBDA", previously
denominated "Adjusted EBITDA" in our precedent 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 2004 is Euros 35.4 million, 22% of the revenues.
Summary of cash-flows
Million of Euros Period ended March 31st
2004 2003
Cash flow from operations 39.9 48.2
Capital expenditures (13.1) (9.4)
Investment in library (18.0) (32.3)
ORBDA 35.4 46.7
Net Result:
Net result for the first quarter 2004 was a Euros 6.1 million profit, compared
to a Euros 5.5 million loss for the first quarter 2003.
Balance Sheet items:
As of March 31st 2004, net equity stood at Euros 410 million and net debt at
Euros 173 million representing a 42% gearing ratio. The increase of Euros 34
million in net debt compared to year-end 2003 results exclusively from the
payments of the recent Sercel acquisitions and from the cash disbursements of
the land acquisition restructuring program, while operating activities provided
a positive net cash flow during the period.
Equity and Net Debt
Million of Euros 31/03/2004 31/12/2003
Shareholders' equity 409.8 396.6
Net debt 173.0 139.2
Gearing ratio 42.2 % 35.1 %
Backlog and 2004 perspectives:
The backlog as of May 1st 2004 stood at USD 305 million up 40% compared to the
same period last year. This strong backlog will favourably impact the second
semester, in particular the Geophysical Services with the second quarter
representing a low point. After an exceptional first quarter, Sercel will see
a good level of activity across the year.
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.
-- Robert Brunck, Chairman and CEO, will comment on the results during
the shareholders meeting at 9:30 am - 10, avenue d'Iena (Hubert
Roussellier Amphitheatre) - Paris 16th arrondissement.
-- Copies of his presentation for this conference will be posted on CGG
web site and can be downloaded.
-- An English language conference call is scheduled at 3 p.m. (Paris
time) - 8 am (US CT) - 9 am (US ET). To take part in the English
language conference, simply dial five to ten minutes prior to the
scheduled start time.
-- International call-in : 1 719 457 2679
-- US call-in : (800) 500 01 77
-- Replay : (719) 457 0820 & (888) 203 1112
You will be asked for the name of the conference: "CGG Q1 2004 Results" and the
name of the Chairman of the Board of Directors: "Robert Brunck".
This conference will be broadcast live on CGG's website and replays will be
available for a month thereafter.
DATASOURCE: Compagnie Generale de Geophysique
CONTACT: Christophe Pettenati-Auziere, +33-1-64-47-36-75, or Christophe
Barnini, +33-1-64-47-38-10, , both of Compagnie Generale de
Geophysique