CGG is expected to report Q4 2023 segment revenue of $316 million, down 1% year on year, but full-year segment revenue at around $1.12 billion, up 21% .
CGG is expected to report Q4 2023 segment revenue of $316 million, down 1% year on year, but full-year segment revenue at around $1.12 billion, up 21%.
Geoscience segment revenue is expected to be around $97 million, up 40% year-on-year.
Earth Data segment sales are expected to be around $100 million, down 31% year-on-year, mainly due in particular to delayed year-end licensing rounds in Brazil and Gulf of Mexico.
Sensing and Monitoring segment sales are expected to be around $119 million, up 14% year-on-year.
Improved full-year performance is driven in particular by very large deliveries of OBN and land equipment for mega-crew projects. Full-year 2023 segment EBITDA is expected to be around $390-$400 million.
Sophie Zurquiyah, CEO of CGG said: ‘I am pleased to see the positive effects of our strategy, with GEO and SMO performing at near pre-covid levels, our new business initiatives reaching around $90 million in revenue generation, and the company organically delivering around $30 million positive net cash flow in 2023, despite $(65) million of penalty fees from vessel commitments.
‘We expect 2024 performance to improve compared to 2023, while we anticipate the market to moderately grow through 2026, yet unevenly over the quarters, based mainly on mega crew activity and multi-client spending.’
The group’s liquidity at the end of December 2023 is expected to be around $415 million, including around $325 million cash liquidity and $90 million undrawn RCF.
CGG anticipates year-end 2023 net debt before IFRS 16 to be around $875 million, and net debt after IFRS 16 to be around $980 million.
CGG anticipates net cash flow generation to be flat in 2024 but significantly accelerate to $75-100 million during 2025-2026 based on ‘continued operational optimisation’, including the end of its contractual vessel commitments, and the further development of new businesses.
