CGG has reported a first quarter group net loss of $81 million on revenues of $209 million compared to a net loss of $98 million on revenues of $253 million in Q1 2020.
CGG has reported a first quarter group net loss of $81 million on revenues of $209 million compared to a net loss of $98 million on revenues of $253 million in Q1 2020.
The company’s operating loss was $14 million compared to an operating loss of $40 million in Q1 2020.
Segment revenue of $213 million was down 21% year on year from $271 million in Q1 2020. However, IFRS operating loss of $14 million in Q1 2021 was an improvement on an IFRS operating loss of $40 million in Q1 2020.
Geology, Geophysics and Reservoir revenue was $100 million, down from $197 million in the first quarter of 2020. Geoscience Revenue was $66 million compared to 93 million in Q1 2020. Multiclient revenue dropped from $104 million in Q1 2020 to $34 million in Q1 2021. However, the segment reduced its losses from $22 million in Q1 2020 to $8 million in Q1 2021.
Equipment sales improved from $75 million in Q1 2020 to $113 million in Q1 2021. The improvement was driven by Sercel’s land sales, comprising 125,000 channels and 50 vibrators worldwide, mainly for Saudi Arabian megacrews. The WiNG land node system has also sold well to new clients, said CGG.
Sophie Zurquiyah, CGG CEO, said: ‘With our successful refinancing we delivered the last milestone in our CGG 2021 strategy while normalizing our capital structure. We are now actively developing our new ambitions, focusing on growing our core highly differentiated businesses as the market gradually strengthens, and accelerating our growth beyond the core into sectors, including digitalization, observation and monitoring, and energy transition.
As anticipated, we continued to execute projects from our Geoscience backlog and delivered land equipment for the Saudi mega crews this quarter. Multi-Client saw a seasonal low in the first quarter and some shift in timing of sales. Overall, we generated $28m of positive net cash flow this quarter. With the oil price firming up above the $60/ bbl level, we started to see in March a resumption in commercial activity and contract awards, which gives us confidence in our 2021 financial objectives.’
In its results statement CGG confirmed a $1.2 billion debt refinancing and liquidity of $407 million.
