CGG reported a fourth quarter net income of $47 million on revenues of $268 million compared to a net loss of $28 million on revenues of $471 million in Q4 2021.
CGG reported a fourth quarter net income of $47 million on revenues of $268 million compared to a net loss of $28 million on revenues of $471 million in Q4 2021.
Fourth quarter operating profit of $84 million compared with an operating loss of $23 million in Q4 2021.
Q4 Segment revenue was $319million, up 6% and up 7% proforma year-on-year.
Digital, Data and Energy Transition (DDE) segment revenue was $215 million, up 4% year-on-year. Geoscience revenue was $69 million, down 26% year-on-year. Geoscience commercial activity is increasing worldwide with high level of bid submissions at the end of December 2022, up 18% year-on-year, driven by a 58% increase in OBN processing bids, said CGG. At the end of December 2022, order intake in Geoscience was up 26% year-on-year. Earth Data revenue was $145 million, up 28% year-on-year.
In Q4, it had one vessel completing a program offshore Brazil. Prefunding revenue of Earth Data projects was at $67 million and prefunding rate was 264%. Earth Data after-sales were $78 million this quarter, up 43% year-on-year sustained by sales in South America, Gulf of Mexico and the North Sea.
Sensing and Monitoring (SMO) segment revenue was $104 million, up 10% year-on-year. Land equipment sales represented 60% of total sales. Marine equipment sales represented 21% of total sales. ‘OBN market for shallow water application remains active, especially in the Middle East. Marine market for streamers is still limited to equipment upgrades and spare streamer sections deliveries.’ Downhole equipment sales were $7 million. Sales from Beyond the Core businesses were $14 million, significantly up year-on-year and included a contribution from the newly acquired Geocomp business. SMO segment operating income was $12 million, a 12% margin.
Full-year group net income was $43 million on revenues of $927 million compared with a group net loss of $180 million on revenues of $1.06 billion in full-year 2021.
Sophie Zurquiyah, CGG CEO, said: ‘I am pleased to see our strong Q4 financial performance delivering higher than anticipated multi-client data and equipment sales. For CGG, 2022 was a year of continued high market volatility and transition with Beyond the Core revenue contributing 8% of total revenue. We are entering 2023 with improved visibility thanks to our higher backlog and cash generation. Looking forward, our core businesses are expected to grow, enabling us to further develop our Beyond the Core businesses and transform CGG into a global technology and HPC leader.’
