CGG has reported a second quarter net loss of -$147 million on revenues of $239 million compared with a net loss of -$98 million on revenues of $335 million in Q2 2019.
CGG has reported a second quarter net loss of -$147 million on revenues of $239 million compared with a net loss of -$98 million on revenues of $335 million in Q2 2019.
A Q2 operating loss of -$32 million compared with an operating profit of $51 million in Q2 2019.
The company booked $94 million of non-recurring charges related to cost cutting and impairments as a result of the Covid-19 pandemic. The company’s liquidity is $546 million and net debt is $626 million.
Sophie Zurquiyah, CGG CEO, said: ‘The geoscience market continued to deteriorate this quarter as clients reprioritized portfolios to factor in reductions in E&P spending. We are swiftly taking actions necessary to align our cost structure with the new baseline, while maintaining focus on our differentiated technologies and key multi-client investments.’
GGR segment revenue was $144 million, down 35% year-on-year. Geoscience revenue was $83 million, down 11% year-on-year. New businesses in geothermal, carbon monitoring and environmental science were established. Multi-client revenue was $62 million, down 52% year on year. Prefunding revenue of multi-client projects was $46 million. Multi-client cash capex was $73 million and the prefunding rate was 63%. After-sales were at $15 million, down 80% year-on-year. GGR segment operating income was -$39 million after $48 million of non-recurring charges. GGR capital employed was down to $1.7 billion at the end of June 2020.
Equipment segment revenue was $58 million, down 53% year-on-year. All second quarter sales were external. Land equipment sales represented 78% of total sales, including more than 60,000 thousand 508XT channels and 10 Nomad 90 trucks. Marine equipment sales represented 17% of total sales. Activity in the streamer market remains low with mostly spares for Sentinel sections. Equipment segment operating income was $7 million. Equipment capital employed was down to $500 million at the end of June 2020.
