CGG has reported a second quarter net loss of $51 million on revenues of $172 million compared with a net loss of $147 million on revenues of $239 million in the second quarter of 2020.
CGG has reported a second quarter net loss of $51 million on revenues of $172 million compared with a net loss of $147 million on revenues of $239 million in the second quarter of 2020. The company’s operating loss was $1 million compared with $32 million in Q2 2020.
Geology, Geophysics and Reservoir revenue of $110 million was down on $144 million in the second quarter of 2020, but achieved an operating profit of $15 million. Geoscience revenue of $73 million was down 12% year on year but CGG gave an upbeat assessment: ‘Geoscience continued its progressive recovery in Q2. In H1 2021, order intake more than doubled year on year and we are anticipating significant awards in major basins of Gulf of Mexico, Brazil and Guyana,’ said CGG.
Multi-client revenue, within GGR, was $37 million, down from $62 million in Q2 2020. Prefunding of $17 million was down from £46 million in Q2 2020. However, aftersales of $20 million were up from $15 million in Q2 2020. ‘In Q2 we had two vessels working on multi-client programmes as we have commenced work on a five-month 3D multi-client programme in the Norwegian North Sea in addition to our project in Brazil,’ said CGG.
Equipment revenue of $48 million was down from $58 million in the second quarter of 2020. The segment made an operating loss of $16 million compared to an operating loss of $7 million in Q2 2020.
Sophie Zurquiyah, CGG CEO, said: ‘During the first half of the year, the oil price environment has become more favourable. 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.’
