PARIS, Nov. 15, 2001 (PRIMEZONE) -- Compagnie Generale de Geophysique (NYSE:GGY)(SRD :12016), published today its consolidated results for the third quarter of 2001.
Revenues:
At Euros 178.7 million (USD 157.7 million), revenues for the third quarter of 2001 are up 23% compared to the third quarter of 2000. At Euros 556.8 million (USD 497.6 million), CGG total revenues at the end of September are up 26% compared to the first 9 months 2000.
Total revenues for Geophysical Services for the third quarter 2001 are Euros 123.4 million (USD 108.6 million), up 12% compared to the third quarter 2000. At the end of September 2001, total revenues for Geophysical Services are Euros 370.4 million (USD 329.9 million), up 19% compared to the same period last year.
The Land activity saw its total sales for the third quarter 2001 drop by 9% at Euros 46.9 million (USD 41.4 million) compared to the third quarter 2000. On average, 16 crews were in operation across the period, within a traditionally weak season.
The Offshore activity with Euros 50.2 million (USD 44.3 million) for the third quarter 2001, achieved a 48% increase in its total sales figure compared to the third quarter 2000 within a market balanced between exclusive works and multi-client programs. The net book value of the offshore seismic data library at the end of September is at USD 79 million.
The Processing-Reservoir activity with Euros 25.9 million (USD 22.8 million) for the third quarter 2001 saw its total net sales rise 6% compared to the third quarter 2000 within a slowly recovering market.
For the third quarter 2001, Sercel increased its total sales to Euros 64.8 million (USD 57.2 million), 88% above the third quarter 2000. External sales for the third quarter 2001 are Euros 55.7 million. This high level of activity for a third quarter results from the continued demand of 408UL systems for the land market. At the end of September 2001, Sercel total revenues are Euros 213.2 million (USD 190.2 million) up 60% compared to the same period last year.
Operating Results:
For the third quarter 2001, the operating result shows a Euros 8.6 million profit, a significant improvement compared to the 2000 third quarter operating loss of Euros 7.7 million. This operating profit doesn't include a positive contribution of Euros 2.2 million from subsidiaries consolidated under the equity method, mainly Argas, Saudi Arabian subsidiary for land acquisition. At the end of September, the operating result is a profit of Euros 19.6 million, a significant improvement compared to the loss of Euros 18.8 million at the end of September 2000. Similarly, this operating profit doesn't include a positive contribution of Euros 6.8 million, mainly from Argas.
EBITDA:
The EBITDA for the third quarter is Euros 55.3 million, 31% of the revenues. The EBITDA at the end of September is Euros 132.3 million, 24% of the revenues, up 61% when compared to the same period last year.
Net Result:
The net result is a Euros 2.2 million profit, compared to the Euros 10.7 million loss of the third quarter 2000. At the end of September, the net result is a loss of Euros 2.9 million compared to a loss of Euros 32.8 million at the end of September 2000
Backlog:
The backlog as of November 1, 2001, is at Euros 304 million.
Chairman and CEO Robert Brunck stated:
"Our results for this third quarter are in line with our projections. Services are confirming their steady improvement and Sercel's performance continues to be good. We confirm our objective of a profitable fiscal year 2001. Concerning our perspectives, it is clear that the recent tragic events and their consequences on the international situation constitute an element of uncertainty for the short to possibly medium term. We remain however fundamentally confident with the perspectives of development of our sector and with the good positioning of CGG."
Consolidated Statement of Earnings
Million of Euros
Period ended Quarter ended
September 30 September 30
2001 2000 2001 2000
Euros Euros
Operating revenues 556,8 440,4 178,7 144,9
Operating profit (loss) 19,6 (18,8) 8,6 (7,7)
Income (loss) from equity
investments 6,8 1,5 2,2 0,6
Net interest expense (17,8) (10,1) (6,1) (4,1)
Exchange gains (losses) (1,3) 0,0 1,2 1,8
Income taxes (10,2) (8,4) (3,7) (2,7)
Minority interest 0,0 3,0 0,0 1,4
Net income (loss) (2,9) (32,8) 2,2 (10,7)
Earnings per share (Euros) (0,25) (3,53) 0,19 (1,15)
Summary of cash-flows
Cash flow from operations 101,9 31,8 43,1 10,5
Capital expenditures (41,8) (25,5) (18,5) (5,1)
Investment in library (54,5) (75,0) (23,5) (21,5)
Adjusted EBITDA 132,3 82,3 55,3 28,2
Equity and net debt
Shareholders' equity 437,2 279,5 437,2 279,5
Net debt 239,1 187,4 239,1 187,4
Gearing ratio 54,7% 67,0% 54,7% 67,0%
Segment information
Operating revenues
Services 370,4 313,1 123,4 110,7
Products 213,2 146,4 64,8 38,4
Elimination (26,8) (19,1) (9,5) (4,2)
Total 556,8 440,4 178,7 144,9
Operating profit (loss)
Services (15,7) (18,7) (3,4) (4,9)
Products 45,9 6,2 15,6 (2,2)
Corporate (6,0) (5,3) (2,2) (1,9)
Elimination (4,6) (1,0) (1,4) 1,3
Total 19,6 (18,8) 8,6 (7,7)
The information included herein contains certain forward-looking statements within the meaning of Section 27A of the securities act of 1933 and section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties as disclosed by the Company from time to time in its filings with the Securities and Exchange Commission. Actual results may vary materially.
The Compagnie Generale de Geophysique group is a global participant in the oilfield services industry, providing a wide range of seismic data acquisition, processing and geoscience services and software to clients in the oil and gas exploration and production business. It is also a global manufacturer of geophysical equipment.
The Company will hold two international conference calls on Thursday, November 15.
A conference call in French is scheduled at 10:00 am (Paris Time). For active participation please dial: 33-1-55 69 57 35
A conference call in English is scheduled at 4:00 p.m. continental European time and 10:00 a.m. US Eastern Time.
For active participation, dial: From the US: (800) 665 0430; outside the US: 1 (913)- 981 5591, mention title: CGG results for the third quarter 2001.
Both conference calls are available for listening only on the CGG website at www.cggg.com.
To follow the conference call, you can download the presentation from our web site.