Company Website:
http://www.cggveritas.com
PARIS -- (Business Wire)
Regulatory News:
2011 Revenue up 10% and Cash Flow from Operations up 36%
Operating
Income at $208 million
Net Free Cash Flow of $94 million
2012
Outlook: Growth and Performance
CGGVeritas (Paris:GA) (NYSE:CGV) (ISIN: 0000120164 – NYSE: CGV) Board of
Directors approved on February 29, 2012, the 2011 financial statements
of the Company, on which the independent auditors are in the process of
completing their audit procedures.
2011 Key Figures
|
In million $
|
|
2011 |
| 2010 |
| Revenue | | 3 180 | | 2 904 |
| Operating Income (before 2010 restructuring costs and
impairment of intangible assets)
| | 208 | | 220 |
| Operating Income (1) | | 208 | | 89 |
| Net Income (before 2010 restructuring costs and impairment of
intangible assets)
| | -13 | | 29 |
| Net Income (1) | | -13 | | -59 |
| Cash Flow from Operations | | 815 | | 598 |
| Free Cash Flow | | 94 | | -108 |
| Net Debt | | 1 411 | | 1 536 |
| Net Debt to Equity Ratio | | 37% | | 41% |
(1)2010 Results included restructuring costs and impairment
of intangible assets.
CGGVeritas CEO, Jean-Georges Malcor commented:
“We are pleased to report that our performance plan, which included
significant fleet upgrades, started to show results as early as the
second half of 2011. Despite the continued challenging marine
marketplace, unrest in North Africa and the Middle East, and the
measured recovery of the Gulf of Mexico, free cash flow was strong and
well above our target for the year.
Looking forward into 2012, in the context of a strong oil price
environment, E&P spending is expected to continue to grow. Demand for
high-end technologies and solutions should favor our activities and
strengthen the success of our differentiating offers such as BroadSeis.
Sercel is poised for another year of excellence and Services activities
could significantly improve based on the combined impact of our
performance plan and the gradual increase of marine prices.
The ongoing strengthening of our high-end positioning and
technological differentiation positions us to fully benefit from the
expected robust seismic market conditions. In this context, I believe
that CGGVeritas in 2012 can start a new journey of growth and strengthen
its financial and operational performance”.
Fourth Quarter 2011 Results: Strong Sercel and multi-client activity
-
Group revenue was $906 million, stable year-on-year compared to a
particularly strong 2010 fourth quarter and up 14% sequentially mainly
driven by Sercel and multi-client sales.
-
Group operating income was $71 million, including a one-off $13
million charge related to a Sercel post-closing event. Group margin
was 8%:
-
Sercel margin was high at 30% driven by demand for high resolution
surveys.
-
Services margin was 2% as low fleet utilization and reduced land
activity this quarter offset stronger multi-client contributions,
including record high marine after-sales.
-
Net income was $21 million.
-
Operational cash flow was up 17% year-on-year to $330 million. After
capital expenditure and financial costs, free cash flow was positive
at $102 million despite the continued low priced marine environment
and a very competitive land market during the quarter.
-
Backlog strengthened to $1.461 billion, up 18% when compared to
September 30, 2011.
Full Year 2011 Results: Strong free cash flow in a continued
challenging market
-
Group revenue was $3.2 billion, up 10% year-on-year.
-
Group operating income was $208 million, a 7% margin and $225 million
including the $17 million operational contribution of operating income
from equity investees.
-
Sercel strengthened significantly delivering a 31% operating
margin.
-
Services were break even mainly due to lingering overcapacity in
marine.
-
Net income was a loss of $13 million, including a one-off financial
restructuring charges of $42 million.
-
Operational cash flow was up 36% year-on-year to $815 million and free
cash flow was positive at $94 million compared to negative $108
million in 2010.
-
Net debt to equity ratio was 37%, compared to 41% by year-end 2010.
2011 Post Closing Events:
-
The acquisition of Geophysical Research Company “GRC” strengthened the
growth and diversification of Sercel into high resolution down hole
gauges and sensors.
-
An unfavorable US court judgment for Sercel on February 17, 2012, led
to a one-off charge of $13 million in the fourth quarter and full year
2011 results.
2012 Outlook: Growth and Performance
-
E&P spending is expected to strengthen in 2012 leading to increased
geophysical activity, the progressive absorption of marine
overcapacity and more favorable pricing.
-
In the context of increasing global seismic demand together with
progressively strengthening marine pricing and utilization rates as
early as the second quarter, 2012 should be a year of growth and
increasing performance across all activities. Group revenue is
expected to grow 10%-15% year-on-year in line with E&P spending.
-
We continue to pursue our 2011-2012 performance plan which we expect
to generate the targeted $150 million additional operating income by
the end of 2012 compared to our 2010 baseline.
-
Sercel should continue to grow and deliver excellent results.
-
In Services, to further strengthen our high-end positioning, the
performance plan will be sustained by productivity investments of:
-
Recurring industrial Capex of around $250 million in 2012.This
includes the continued strengthening of our high-end
differentiation in Land, where our crews will be focused on
ultra-high resolution configurations, and utilizing the Sercel
428XL and UNITE wireless system.
-
$65 million additional non-recurring industrial Capex related to
the upgrade of the Champion including its seismic equipment. The
vessel is expected to return to operations in the second quarter
bringing our 3D fleet to 15 high-end vessels including 11 with 12
plus streamers and 4 with 8 -10 streamers. All vessels will be
equipped with BroadSeisTM in 2012.
-
Marine multi-client Cash(1) Capex around $200 - $250
million with a prefunding rate around 85% and amortization rate
around 60%. The investments include new Gulf of Mexico programs
where visibility improved as future lease rounds have been
announced.
-
Land multi-client Cash(1) Capex around $120 - $150
million with a prefunding rate around 85% and amortization rate
around 80%.
(1)To improve the disclosure of our accounts and starting
in the first quarter 2012 results, CGGVeritas will report only the cash
portion of multi-client Capex. With this, the non-cash portion of this
investment will not be taken into account in the EBITDAs calculation and
will be directly incorporated to the book value of the library.
On
this basis and with a 2011 multi-client Cash Capex amounting to $203
million ($78 million in marine and $125 million in land), 2011 Group
EBITDAs would have been $826 million and the 2011 Net Free Cash Flow
would have remained the same at $94 million.
Fourth Quarter 2011 Financial Results
Fourth Quarter 2011 key figures
|
In million $
|
| Third Quarter 2011 |
| Fourth Quarter |
| | 2011 |
| 2010 |
| Group Revenue | | 797 | | 906 | | 905 |
|
Sercel
| |
275
| |
326
| |
284
|
|
Services
| |
592
| |
632
| |
651
|
| Group Operating Income (before 2010 restructuring &
impairment)
| | 98 | | 71 | | 120 |
| Margin | | 12% | | 8% | | 13% |
|
Sercel
| |
87
| |
98
| |
101
|
| Margin | | 32% | | 30% | | 36% |
|
Services
| |
53
| |
11
| |
35
|
| Margin | | 9% | | 2% | | 5% |
| Group Operating Income | | 98 | | 71 | | -11 |
| Net Income (before 2010 restructuring & impairment)
| | 41 | | 21 | | 53 |
| Margin | | 5% | | 2% | | 6% |
| Net Income | | 41 | | 21 | | -35 |
Revenue
Group revenue was stable in $ (down 2% in €) year-on-year. Sequentially,
Group revenue was up 14% in $ mainly based on increasing Sercel
equipment deliveries and multi-client sales.
|
| |
| |
| |
| |
| |
|
In millions
| | Third Quarter | | Fourth Quarter | | Fourth Quarter |
|
| 2011 ($) |
| 2011 ($) |
| 2010 ($) | | 2011 (€) |
| 2010 (€) |
| Group Revenue |
| 797 |
| 906 |
| 905 | | 662 |
| 672 |
|
Sercel Revenue
|
|
275
|
|
326
|
|
284
| |
239
|
|
210
|
|
Services Revenue
|
|
592
|
|
632
|
|
651
| |
462
|
|
484
|
| Eliminations |
|
-70
|
| -52 |
|
-30
| | -39 |
|
-22
|
|
Marine contract
|
|
291
|
|
245
|
|
207
| |
180
|
|
154
|
|
Land contract
|
|
68
|
|
64
|
|
106
| |
48
|
|
79
|
|
Processing
|
|
113
|
|
124
|
|
108
| |
90
|
|
80
|
|
Multi-client
|
|
119
|
|
199
|
|
230
| |
144
|
|
172
|
| MC marine |
| 83 |
| 160 |
| 178 | | 115 |
| 133 |
| MC land |
| 36 |
| 40 |
| 52 | | 29 |
| 39 |
Sercel
Fourth quarter revenue was up 15% in $ (14% in €) year-on-year.
Sequentially, revenue was up 18% in $. Operating margin reached 30%
(including the $13 million one-off charge related to the post-closing
event), a particularly strong result. External sales were $274 million
this quarter, the highest level of sales over the last three years,
driven by sustained land equipment sales, which were up 30%
sequentially. Marine equipment sales remained stable sequentially.
Internal sales represented 16% of revenue.
Services
Revenue was down 3% in $ (-5% in €) year-on-year and up 7% sequentially
in $. Operating margin was 2% as strong multi-client sales and solid
processing & imaging activity compensated the continued low priced
marine market and weaker land contract activity this quarter.
- Marine contract revenue was up 18% in $
(17% in €) year-on-year. After a strong third quarter, revenue was
sequentially down 16% in $ mainly due to higher transit times and the
docking of the Champion for its major upgrade. Fifteen percent of the
fleet was dedicated to multi-client programs during the quarter. The
fleet operated with a vessel availability1 rate of 81% and
a production2 rate of 87% in a context of lingering low
marine prices. The new X-BOW Oceanic Sirius entered into operation and
the success of BroadSeis is accelerating with 6 surveys active during
the quarter.
- Land contract revenue was down 39% in $
(-39% in €) year-on-year and down 5% sequentially in $. Continued
unrest in some North African and Middle-East countries delayed startup
on a few projects this quarter. Conditions should improve in the first
half of the year as large projects in the Middle East are initiated
and with the anticipated strong winter campaign which was in
preparation this quarter. In Saudi Arabia, with our equity investee
subsidiary Argas, Ocean Bottom Cable operations reached record
production rates.
- Processing & Imagingrevenue
was up 14% in $ (12% in €) year-on-year and up 9% sequentially in $.
Demand increase was mainly driven by continued growing data volumes
and our unique sophisticated imaging algorithms. This further
differentiates us in the minds of our clients facing complex geologic
challenges. In this context processing and imaging performance
continues to strengthen significantly.
- Multi-clientrevenue was down 13%
in $ (-16% in €) year-on-year compared to a particularly strong 4th
quarter last year. Sequentially, sales were up 67% in $ with very
strong after-sales which were fueled by excellent seasonal demand
particularly in the Gulf of Mexico where activity is recovering. Capex
was $64 million (€47 million) with a prefunding ratio of 67%. The
amortization rate averaged 62%, with 84% in land and 56% in marine.
Net Book Value at the end of December was $527 million (€407 million),
down 13% year-on-year.
- Multi-client marine revenue was down 10% in $ (-13% in €)
year-on-year and up 92% sequentially in $. Capex was $39 million
(€28 million) as we returned to the Santos Basin offshore Brazil.
Prefunding ratio was 39% with the initiation of this program.
After-sales worldwide were very strong at $145 million (€104
million), up 23% year-on-year highlighting the confidence of our
clients in their future programs, especially in the Gulf of Mexico.
- Multi-client land revenue was down 24% in $ (-25% in €)
year-on-year, up 9% sequentially in $. Capex this quarter was $26
million (€19 million) dedicated to our Marcellus program.
Prefunding was 109%. After-sales were $12 million (€9 million).
1 - Thevessel availability rate, a metric
measuring the structural availability of our vessels to meet demand;
this metric is related to the entire fleet, and corresponds to the total
vessel time reduced by the sum of the standby time, the shipyard time
and the steaming time (the “available time”), all divided by total
vessel time;
2 - Thevessel production rate, a metric
measuring the effective utilization of the vessels once available; this
metric is related to the entire fleet, and corresponds to the available
time reduced by the operational downtime, all then divided by available
time.
Group EBITDAs was $285 million (€207 million), a margin of 31%.
|
| Third Quarter |
| Fourth Quarter |
| Fourth Quarter |
|
In millions
|
| 2011 ($) |
| 2011 ($) |
| 2010 ($) | | 2011 (€) |
| 2010 (€) |
| Group EBITDAs (before 2010 restructuring & impairment)
|
| 254 |
| 285 |
| 326 | | 207 |
| 243 |
| Margin |
| 32% |
| 31% |
| 36% | | 31% |
| 36% |
|
Sercel EBITDAs
|
|
100
|
|
110
|
|
115
| |
81
|
|
85
|
| Margin |
| 36% |
| 34% |
| 41% | | 34% |
| 41% |
|
Services EBITDAs
|
|
193
|
|
210
|
|
224
| |
152
|
|
167
|
| Margin |
| 33% |
| 33% |
| 34% | | 33% |
| 34% |
| Group EBITDAs |
| 254 |
| 285 |
| 294 | | 207 |
| 219 |
Group Operating Income was $71 million (€52 million). Operating
margin was 8%.
|
| Third Quarter |
| Fourth Quarter |
| Fourth Quarter |
|
In millions
|
| 2011 ($) |
| 2011 ($) |
| 2010 ($) | | 2011 (€) |
| 2010 (€) |
| Group Operating Income (before 2010 restructuring &
impairment)
|
| 98 |
| 71 |
| 120 | | 52 |
| 90 |
| Margin |
| 12% |
| 8% |
| 13% | | 8% |
| 13% |
|
Sercel Operating Income
|
|
87
|
|
98
|
|
101
| |
72
|
|
75
|
| Margin |
| 32% |
| 30% |
| 36% | | 30% |
| 36% |
|
Services Operating Income
|
|
53
|
|
11
|
|
35
| |
8
|
|
26
|
| Margin |
| 9% |
| 2% |
| 5% | | 2% |
| 5% |
| Group Operating Income |
| 98 |
| 71 |
| -11 | | 52 |
| -9 |
Financial Charges
Financial charges were $28 million (€21 million):
-
Recurring cost of Debt was $39 million.
-
Other financial items were positive at $11 million due to the
favorable impact of currency translation.
Taxes were $29 million (€21 million), embedding notably $11m
foreign deemed taxation related to Services activities.
Group Net Income was $21 million (€15 million), compared to a
loss of $35 million (€26 million) in the fourth quarter 2010, after
restructuring costs and impairment of intangible assets.
Net Income attributable to the owners of CGGVeritas was $17
million (€12 million) after the impact of minority interests of $4
million. EPS was €0.08 per ordinary share and $0.11 per ADS.
Cash Flow
Cash Flow from Operations
Cash flow from operations was $330 million (€239 million), compared to
$283 million (€212 million) in 2010.
Capex
Global Capex was $178 million (€130 million) this quarter, up of
53% year-on-year.
-
Industrial Capex was $114 million (€83 million).
-
Multi-client Capex was $64 million (€47 million), up 13% in $ with a
67% prefunding rate.
|
In million $
|
| Fourth Quarter |
| 2011 |
| 2010 |
| Capex | | 178 | | 116 |
|
Industrial
| |
114
| |
59
|
|
Multi-client
| |
64
| |
57
|
| MC marine | | 39 | | 27 |
| MC land | | 26 | | 30 |
Free Cash Flow
After financial interests paid during the quarter, free cash flow was
positive at $102 million compared to $105 million in the fourth quarter
of 2010.
Fourth Quarter 2011 Comparisons with Fourth Quarter 2010 before 2010
restructuring costs and impairment of intangible assets
| Consolidated Income Statement |
| Third Quarter |
| Fourth Quarter |
| Fourth Quarter |
|
In millions/before restructuring & impairment
|
| 2011 ($) |
| 2011 ($) |
| 2010 ($) | | 2011 (€) |
| 2010 (€) |
| Exchange rate euro/dollar |
| 1.439 |
| 1.364 |
| 1.329 | | 1.364 |
| 1.329 |
| Operating Revenue |
| 796.7 |
| 905.7 |
| 905.0 | | 662.1 |
| 672.4 |
| Sercel |
| 275.0 |
| 325.5 |
| 283.7 | | 239.4 |
| 209.8 |
| Services |
| 591.5 |
| 632.1 |
| 651.3 | | 461.5 |
| 484.4 |
| Elimination |
| -70.0 |
| -51.9 |
| -30.2 | | -38.8 |
| -21.8 |
| Gross Profit |
| 158.3 |
| 177.3 |
| 208.8 | | 129.1 |
| 155.5 |
| Operating Income |
| 97.8 |
| 71.0 |
| 119.9 | | 51.6 |
| 89.8 |
| Sercel |
| 86.7 |
| 97.5 |
| 101.0 | | 71.9 |
| 75.1 |
| Services |
| 52.8 |
| 10.8 |
| 34.7 | | 7.8 |
| 26.2 |
| Corporate and Elimination |
| -41.7 |
| -37.3 |
| -15.8 | | -28.1 |
| -11.5 |
| Net Financial Costs |
| -32.3 |
| -27.6 |
| -36.4 | | -20.7 |
| -27.0 |
| Income Tax |
| -19.0 |
| -26.1 |
| -27.5 | | -18.8 |
| -20.6 |
| Deferred Tax on Currency Translation |
| -7.8 |
| -3.2 |
| -6.1 | | -2.3 |
| -4.7 |
| Income from Equity Investments |
| 1.9 |
| 6.9 |
| 3.4 | | 5.0 |
| 2.6 |
| Net Income |
| 40.6 |
| 21.0 |
| 53.2 | | 14.8 |
| 40.2 |
| Earnings per ADS ($)/per share (€) |
| 0.25 |
| 0.11 |
| 0.34 | | 0.08 |
| 0.25 |
| EBITDAs |
| 254.5 |
| 284.8 |
| 325.6 | | 207.1 |
| 242.9 |
| Sercel |
| 100.4 |
| 109.9 |
| 115.0 | | 81.1 |
| 85.4 |
| Services |
| 193.4 |
| 209.8 |
| 223.6 | | 152.2 |
| 166.8 |
|
Industrial Capex
|
| 104.2 |
|
113.6
|
|
59.3
| | 83.0 |
| 43.6 |
|
Multi-client Capex
|
| 75.2 |
|
64.4
|
| 57.0 | | 47.0 |
| 41.9 |
2011 Financial Results
Group Revenue
Group Revenue was up 10% in $ (4% in €) year-on-year, reflecting the
strengthening performance of Sercel, up 14% in $ and the increase in
Services up 10% which was constrained by the ongoing marine overcapacity
and the impact of the continued unrest in some North African and
Middle-East countries in contract land.
|
In millions
|
| |
| |
|
| 2011 ($) |
| 2010 ($) | | 2011 (€) |
| 2010 (€) |
| Group Revenue |
| 3 180 |
| 2 904 | | 2 268 |
| 2 186 |
|
Sercel Revenue
|
|
1 142
|
|
1 000
| |
816
|
|
754
|
|
Services Revenue
|
|
2 289
|
|
2 083
| |
1 631
|
|
1 567
|
| Eliminations |
| -251 |
|
-178
| | -179 |
|
-134
|
|
Marine contract
|
|
977
|
|
778
| |
696
|
|
585
|
|
Land contract
|
|
373
|
|
381
| |
266
|
|
287
|
|
Processing
|
|
443
|
|
389
| |
315
|
|
293
|
|
Multi-client
|
|
497
|
|
534
| |
354
|
|
402
|
| MC marine |
| 365 |
| 388 | | 260 |
| 292 |
| MC land |
| 132 |
| 146 | | 94 |
| 110 |
Sercel
Sercel sales were up 14% in $ (8% in €). Land equipment sales increased
significantly in 2011 due to increasing demand for high channel count
crews and regional activity.
Internal sales represented 22% of
Sercel total sales in 2011.
Services
Revenue was up 10% in $ (4% in €). Challenging market conditions
remained as continued overcapacity impacted marine contract activity and
land was hampered by delays in North Africa and Middle-East and despite
sustained strong processing activity. The vessel availability rate for
the full year 2011 was 86% and the production rate was 86%.
Multi-clientrevenue was down 7% in $ (12% in €) as Capex was
reduced 21% in $ to $229 million (€163 million) and after-sales
increased 17% to $335 million (€239 million). The prefunding rate was
71% with 63% in marine and 76% in land. The amortization rate was 57%.
- Multi-client marine revenue was down 6% in $ (-11% in €)
year-on-year with a prefunding rate of 63%. Capex was reduced to $100
million (€71 million) as we focused on North Sea and Brazil where we
introduced our BroadSeis solution. We did not invest in new Gulf of
Mexico acquisition programs in 2011 as we waited for better
visibility. After-sales worldwide were very strong at $303 million
(€216 million), up 39% in $ year-on-year ahead of the worldwide lease
sales.
- Multi-client land revenue was down 10% in $ (-15% in €)
year-on-year with a prefunding rate of 76%. Capex this year was $129
million (€93 million) dedicated to our Marcellus program. After-sales
were $32 million (€23 million), down 53% in $ year-on-year.
Group EBITDAs was $852 million (€607 million), a margin of 27%.
|
| YTD |
| YTD |
|
In millions
|
| 2011 ($) |
| 2010 ($) | | 2011 (€) |
| 2010 (€) |
| Group EBITDAs (before 2010 restructuring & impairment)
|
| 852 |
| 824 | | 607 |
| 620 |
| Margin |
| 27% |
| 28% | | 27% |
| 28% |
|
Sercel EBITDAs
|
|
408
|
|
341
| |
292
|
|
257
|
| Margin |
| 36% |
| 34% | | 36% |
| 34% |
|
Services EBITDAs
|
|
592
|
|
580
| |
422
|
|
436
|
| Margin |
| 26% |
| 28% | | 26% |
| 28% |
| Group EBITDAs |
| 852 |
| 792 | | 607 |
| 596 |
Group Operating Income was $208 million (€148 million), a margin
of 7%.
|
| YTD |
| YTD |
|
In millions
|
| 2011 ($) |
| 2010 ($) | | 2011 (€) |
| 2010 (€) |
| Group Operating Income (before 2010 restructuring &
impairment)
|
| 208 |
| 220 | | 148 |
| 166 |
| Margin |
| 7% |
| 8% | | 7% |
| 8% |
|
Sercel Operating Income
|
|
355
|
|
290
| |
254
|
|
219
|
| Margin |
| 31% |
| 29% | | 31% |
| 29% |
|
Services Operating Income
|
|
9
|
|
37
| |
6
|
|
28
|
| Margin |
| 0% |
| 2% | | 0% |
| 2% |
| Group Operating Income |
| 208 |
| 89 | | 148 |
| 67 |
Financial Charges
Financial charges were $174 million (€124 million):
-
Recurring cost of Debt was $151 million.
-
$42 million of one-off charges related to our debt refinancing in the
first half of the year with $25 million in the first quarter and $17
million in the second quarter.
-
Other financial items were positive at $19 million due to the
favorable impact of currency translation.
Group Net Income was a loss of $13 million (€9 million) in 2011,
including the $28 million post tax non-recurring financial charges to
compare with a loss of $59 million (€44 million) in 2010, after
restructuring costs and impairment of intangible assets.
Net Income attributable to the owners of CGGVeritas was a loss of
$27 million (€19 million) after the impact of minority interests of $14
million. EPS was -€0.13 per ordinary share and -$0.18 per ADS.
Cash Flow
Cash Flow from Operations
Cash flow from operations was $815 million (€581 million) up 36%
compared to $598 million (€450 million) in 2010.
Capex
Global Capex was $626 million (€446 million), up 6% year-on-year.
-
Industrial Capex was $397 million (€283 million).
-
Multi-client Capex was $229 million (€163 million), down 21% in $ with
71% prefunding.
|
In million $
|
| YTD |
| 2011 |
| 2010 |
| Capex | | 626 | | 591 |
|
Industrial
| |
397
| |
300
|
|
Multi-client
| |
229
| |
291
|
| MC marine | | 100 | | 206 |
| MC land | | 129 | | 85 |
Free Cash Flow
After financial interests paid during the year, free cash flow was
positive at $94 million, compared to a negative free cash flow at $108
million in 2010.
Balance Sheet
Group gross debt was $1.942 billion (€1.501 billion), at the end of
December 2011.
With $531 million (€411 million), in available cash, Group net debt was
$1.411 billion (€1.090 billion), down from $1.536 billion at the end of
2010.
Net debt to equity ratio, at the end of December 2011, was 37% compared
to 41% at the end of December 2010.
2011 Comparisons with 2010 before 2010 restructuring costs and
impairment of intangible assets
| Consolidated Income Statement |
| YTD |
| YTD |
|
In millions/before restructuring and impairment
|
| 2011 ($) |
| 2010 ($) | | 2011 (€) |
| 2010 (€) |
| Exchange rate euro/dollar |
| 1.403 |
| 1.329 | | 1.403 |
| 1.329 |
| Operating Revenue |
| 3 180.4 |
| 2 904.2 | | 2 267.7 |
| 2 186.1 |
| Sercel |
| 1 142.0 |
| 999.6 | | 815.8 |
| 753.6 |
| Services |
| 2 289.5 |
| 2 082.9 | | 1 631.3 |
| 1 566.9 |
| Elimination |
| -251.1 |
| -178.3 | | -179.4 |
| -134.4 |
| Gross Profit |
| 536.8 |
| 588.7 | | 382.7 |
| 443.1 |
| Operating Income |
| 207.5 |
| 220.2 | | 147.9 |
| 165.7 |
| Sercel |
| 355.2 |
| 290.4 | | 253.7 |
| 218.9 |
| Services |
| 8.5 |
| 37.4 | | 6.2 |
| 28.2 |
| Corporate and Elimination |
| -156.2 |
| -107.6 | | -112.0 |
| -81.4 |
| Net Financial Costs |
| -173.7 |
| -128.9 | | -123.8 |
| -97.0 |
| Income Tax |
| -58.5 |
| -52.1 | | -41.7 |
| -39.3 |
| Deferred Tax on Currency Translation |
| -4.6 |
| -8.9 | | -3.3 |
| -6.6 |
| Income from Equity Investments |
| 16.4 |
| -1.0 | | 11.7 |
| -0.7 |
| Net Income |
| -12.9 |
| 29.4 | | -9.2 |
| 22.2 |
| Earnings per ADS ($)/ per share (€) |
| -0.18 |
| 0.10 | | -0.13 |
| 0.08 |
| EBITDAs |
| 851.6 |
| 824.3 | | 607.1 |
| 620.5 |
| Sercel |
| 408.3 |
| 340.5 | | 291.7 |
| 256.7 |
| Services |
| 591.8 |
| 579.8 | | 421.7 |
| 436.1 |
|
Industrial Capex
|
|
396.8
|
| 300.1 | | 282.9 |
|
225.9
|
|
Multi-client Capex
|
|
229.0
|
| 291.3 | | 163.2 |
|
219.3
|
Other Information
-
Jean-Georges Malcor, CEO, will comment on the results today,
March 1, 2012 during a public presentation at 9:30 AM – at the
Academie Diplomatique Internationale – 4 bis avenue Hoche – PARIS 8ème.
-
An English language conference call is scheduled today at 3:00 PM(Paris
time) – 2:00 PM (London time) – 8:00 AM (US CT) – 9:00 AM (US ET).
To take part in the English language conference, simply dial five to ten
minutes prior to the scheduled start time.
-
US Toll-Free 1-877-317-6789
-
International call-in 1-412-317-6789
-
Replay 1-877-344-7529 & 1-412-317-0088
Conference number: 10009281
You will be connected to the conference: “CGGVeritas Q4 & Full Year 2011
results”.
-
Copies of the presentation are posted on the Company website www.cggveritas.com
and can be downloaded.
-
The conference call will be broadcast live on the CGGVeritas website www.cggveritas.com
and a replay will be available for two weeks thereafter.
About CGGVeritas
CGGVeritas (www.cggveritas.com)
is a leading international pure-play geophysical company delivering a
wide range of technologies, services and equipment through Sercel, to
its broad base of customers mainly throughout the global oil and gas
industry. CGGVeritas is listed on the Euronext Paris SA (ISIN:
0000120164) and the New York Stock Exchange (in the form of American
Depositary Shares, NYSE: CGV).
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.
CGGVeritas
2011
CONSOLIDATED FINANCIAL STATEMENTS
UNAUDITED INTERIM CONSOLIDATED BALANCE SHEET
|
|
December 31, 2011
|
| amounts in millions of | | € |
| US$ (1) |
| ASSETS | | | | |
|
Cash and cash equivalents
| |
410.7
| |
531.4
|
|
Trade accounts and notes receivable, net
| |
677.0
| |
876.0
|
|
Inventories and work-in-progress, net
| |
279.4
| |
361.5
|
|
Income tax assets
| |
92.3
| |
119.4
|
|
Other current assets, net
| |
121.4
| |
157.0
|
|
Assets held for sale, net
| |
49.8
| |
64.5
|
| Total current assets | | 1,630.6 | | 2,109.8 |
|
Deferred tax assets
| |
145.9
| |
188.9
|
|
Investments and other financial assets, net
| |
19.1
| |
24.7
|
|
Investments in companies under equity method
| |
100.2
| |
129.6
|
|
Property, plant and equipment, net
| |
913.9
| |
1,182.5
|
|
Intangible assets, net
| |
668.6
| |
865.1
|
|
Goodwill
| |
2,077.6
| |
2,688.2
|
| Total non-current assets | | 3,925.3 | | 5,079.0 |
| TOTAL ASSETS | | 5,555.9 | | 7,188.8 |
| LIABILITIES AND EQUITY
Bank overdrafts
| |
4.6
| |
6.0
|
|
Current portion of financial debt
| |
49.9
| |
64.6
|
|
Trade accounts and notes payable
| |
298.6
| |
386.4
|
|
Accrued payroll costs
| |
143.5
| |
185.7
|
|
Income taxes liability
| |
123.5
| |
159.8
|
|
Advance billings to customers
| |
39.4
| |
51.0
|
|
Provisions – current portion
| |
26.8
| |
34.6
|
|
Other current liabilities
| |
210.2
| |
271.9
|
| Total current liabilities | | 896.5 | | 1,160.0 |
|
Deferred tax liabilities
| |
85.5
| |
110.7
|
|
Provisions – non-current portion
| |
82.5
| |
106.7
|
|
Financial debt
| |
1,446.5
| |
1,871.6
|
|
Other non-current liabilities
| |
38.5
| |
49.8
|
| Total non-current liabilities | | 1,653.0 | | 2,138.8 |
|
Common stock 228,141,797 shares authorized and 151,861,392 shares
with a €0.40 nominal value issued and outstanding at December 31,
2011 and 151,506,109 at December 31, 2010
| |
60.7
| |
78.5
|
|
Additional paid-in capital
| |
1,970.1
| |
2,549.1
|
|
Retained earnings
| |
894.1
| |
1,156.9
|
|
Treasury shares
| |
(13.8)
| |
(17.8)
|
|
Net income (loss) for the period – Attributable to the Group
| |
(19.0)
| |
(24.6)
|
|
Income and expense recognized directly in equity
| |
(9.0)
| |
(11.6)
|
|
Cumulative translation adjustment
| |
55.8
| |
72.2
|
| Equity attributable to owners of CGGVeritas SA | | 2,938.9 | | 3,802.7 |
|
Non controlling interests, presented within equity
| |
67.5
| |
87.3
|
| Total equity | | 3,006.4 | | 3,890.0 |
| TOTAL LIABILITIES AND EQUITY | | 5,555.9 | | 7,188.8 |
(1) Dollar amounts represent euro amounts converted at the exchange rate
of US$1.294 per € on the balance sheet date.
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
|
| |
| | December 31, 2011 |
| except per share data, amounts in millions of | | € |
| US$ (1) |
| | | |
|
| Operating revenues | | 2,267.7 | | 3,180.4 |
|
Other income from ordinary activities
| |
2.3
| |
3.3
|
| Total income from ordinary activities | | 2,270.0 | | 3,183.7 |
|
Cost of operations
| |
(1,887.3)
| |
(2,646.9)
|
| Gross profit | | 382.7 | | 536.8 |
|
Research and development expenses, net
| |
(54.9)
| |
(77.0)
|
|
Marketing and selling expenses
| |
(59.3)
| |
(83.1)
|
|
General and administrative expenses
| |
(145.1)
| |
(203.5)
|
|
Other revenues (expenses), net
| |
24.5
| |
34.3
|
| Operating income | | 147.9 | | 207.5 |
|
Expenses related to financial debt
| |
(126.4)
| |
(177.2)
|
|
Income provided by cash and cash equivalents
| |
2.0
| |
2.7
|
| Cost of financial debt, net | | (124.4) | | (174.5) |
|
Other financial income (loss)
| |
0.6
| |
0.8
|
| Income of consolidated companies before income taxes | | 24.1 | | 33.8 |
|
Deferred taxes on currency translation
| |
(3.3)
| |
(4.6)
|
|
Other income taxes
| |
(41.7)
| |
(58.5)
|
| Total income taxes | | (45.0) | | (63.1) |
| Net income from consolidated companies | | (20.9) | | (29.3) |
|
Equity in income of investees
| |
11.7
| |
16.4
|
| Net income | | (9.2) | | (12.9) |
| Attributable to : | | | | |
| Owners of CGGVeritas SA | |
(19.0)
| |
(26.7)
|
| Non controlling interests | |
9.8
| |
13.8
|
| | | |
|
|
Weighted average number of shares outstanding
| |
151,771,940
| |
151,771,940
|
|
Dilutive potential shares from stock-options(2) | |
_
| |
_
|
|
Dilutive potential shares from free shares(2) | |
_
| |
_
|
|
Dilutive potential shares from convertible bonds(2) | |
_
| |
_
|
|
Adjusted weighted average number of shares and assumed option
exercises when dilutive
| |
151,771,940
| |
151,771,940
|
| Net income (loss) per share attributable to owners of CGGVeritas
SA
Basic
| |
(0.13)
| |
(0.18)
|
|
Diluted
| |
(0.13)
| |
(0.18)
|
(1) Dollar amounts represent euro amounts converted at the average
exchange rate for the period of US$1.403 per €.
(2) Stock-options,
performance shares plans and convertible bonds have an anti-dilutive
effect; as a consequence, potential shares linked to those instruments
are not taken into account in the dilutive weighted average number of
shares, nor in the calculation of diluted loss per share.
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
|
| Three months ended December 31, 2011 |
| |
|
| except per share data, amounts in millions of | | € |
| US$ (1) |
| | | |
|
| Operating revenues | | 662.1 | | 905.7 |
|
Other income from ordinary activities
| |
0.6
| |
0.8
|
| Total income from ordinary activities | | 662.7 | | 906.5 |
|
Cost of operations
| |
(533.6)
| |
(729.2)
|
| Gross profit | | 129.1 | | 177.3 |
|
Research and development expenses, net
| |
(15.7)
| |
(21.4)
|
|
Marketing and selling expenses
| |
(18.1)
| |
(24.8)
|
|
General and administrative expenses
| |
(45.3)
| |
(62.1)
|
|
Other revenues (expenses), net
| |
1.6
| |
2.0
|
| Operating income | | 51.6 | | 71.0 |
|
Expenses related to financial debt
| |
(29.7)
| |
(40.3)
|
|
Income provided by cash and cash equivalents
| |
0.7
| |
1.0
|
| Cost of financial debt, net | | (29.0) | | (39.3) |
|
Other financial income (loss)
| |
8.3
| |
11.7
|
| Income of consolidated companies before income taxes | | 30.9 | | 43.4 |
|
Deferred taxes on currency translation
| |
(2.3)
| |
(3.2)
|
|
Other income taxes
| |
(18.8)
| |
(26.1)
|
| Total income taxes | | (21.1) | | (29.3) |
| Net income from consolidated companies | | 9.8 | | 14.1 |
|
Equity in income of investees
| |
5.0
| |
6.9
|
| Net income | | 14.8 | | 21.0 |
| Attributable to : | | | | |
| Owners of CGGVeritas SA | |
12.1
| |
17.3
|
| Non controlling interests | |
2.7
| |
3.7
|
| | | |
|
|
Weighted average number of shares outstanding
| |
151,861,932
| |
151,861,932
|
|
Dilutive potential shares from stock-options(2) | |
_
| |
_
|
|
Dilutive potential shares from free shares(2) | |
_
| |
_
|
|
Dilutive potential shares from convertible bonds(2) | |
_
| |
_
|
|
Adjusted weighted average number of shares and assumed option
exercises when dilutive
| |
151,861,932
| |
151,861,932
|
| Net income (loss) per share attributable to owners of CGGVeritas
SA
Basic
| |
0.08
| |
0.11
|
|
Diluted
| |
0.08
| |
0.11
|
(1) Corresponding to the twelve months ended December 31 less the nine
months ended September 30, 2011 in US dollars.
(2) Stock-options,
performance shares plans and convertible bonds have an anti-dilutive
effect; as a consequence, potential shares linked to those instruments
are not taken into account in the dilutive weighted average number of
shares, nor in the calculation of diluted loss per share
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
|
| |
| | Year ended December 31, 2011 |
| amounts in millions of | | € |
| US$ (1) |
| OPERATING | | | | |
|
Net income (loss)
| |
(9.2)
| |
(12.9)
|
|
Depreciation and amortization
| |
244.9
| |
343.5
|
|
Multi-client surveys amortization
| |
203.3
| |
285.1
|
|
Variance on provisions
| |
(15.3)
| |
(21.5)
|
|
Expense & income calculated on stock-option
| |
11.2
| |
15.7
|
|
Net gain on disposal of fixed assets
| |
(16.8)
| |
(23.6)
|
|
Equity in income of affiliates
| |
(11.7)
| |
(16.4)
|
|
Dividends received from affiliates
| |
4.9
| |
6.9
|
|
Other non-cash items
| |
(14.7)
| |
(20.6)
|
| Net cash including net cost of financial debt and income taxes | | 396.6 | | 556.2 |
|
Less net cost of financial debt
| |
124.4
| |
174.5
|
|
Less income taxes expenses
| |
45.0
| |
63.1
|
| Net cash excluding net cost of financial debt and income taxes | | 566.0 | | 793.8 |
|
Income taxes paid
| |
(67.4)
| |
(94.5)
|
| Net cash before changes in working capital | | 498.6 | | 699.3 |
|
- change in trade accounts and notes receivables
| |
43.7
| |
61.3
|
|
- change in inventories and work-in-progress
| |
(7.7)
| |
(10.8)
|
|
- change in other currents assets
| |
30.3
| |
42.5
|
|
- change in trade accounts and notes payable
| |
(9.3)
| |
(13.0)
|
|
- change in other current liabilities
| |
34.6
| |
48.5
|
|
Impact of changes in exchange rate
| |
(8.8)
| |
(12.3)
|
| Net cash provided by operating activity | | 581.4 | | 815.4 |
| INVESTING | | | | |
|
Total purchases of tangible and intangible assets (including
variation of fixed
assets suppliers)
| |
(260.7)
| |
(365.6)
|
|
Increase in multi-client surveys
| |
(163.3)
| |
(229.0)
|
|
Proceeds from disposals of tangible and intangible
| |
15.2
| |
21.3
|
|
Total net proceeds from financial assets
| |
9.3
| |
13.0
|
|
Total net acquisition of investments
| |
(7.6)
| |
(10.7)
|
|
Impact of changes in consolidation scope
| |
_
| |
_
|
|
Variation in loans granted
| |
3.3
| |
4.6
|
|
Variation in subsidies for capital expenditures
| |
_
| |
_
|
|
Variation in other financial assets
| |
1.5
| |
2.1
|
| Net cash used in investing activities | | (402.3) | | (564.2) |
| FINANCING | | | | |
|
Repayment of long-term debts
| |
(846.3)
| |
(1,186.9)
|
|
Total issuance of long-term debts
| |
849.0
| |
1,190.7
|
|
Reimbursement on leasing
| |
(27.1)
| |
(38.0)
|
|
Change in short-term loans
| |
_
| |
_
|
|
Financial interest paid
| |
(90.5)
| |
(126.9)
|
| Net proceeds from capital increase | | | | |
|
- from shareholders
| |
2.3
| |
3.2
|
|
- from non controlling interests of consolidated companies
| | _ | |
_
|
|
Disposal (acquisition) of treasury shares
| |
_
| |
_
|
|
Dividend paid to non controlling interests
| |
(2.7)
| |
(3.8)
|
| Net cash provided by (used in) financing activities | | (115.3) | | (161.7) |
|
Effects of exchange rate changes on cash
| |
11.0
| |
(6.9)
|
| Net increase (decrease) in cash and cash equivalents | | 74.8 | | 82.6 |
| Cash and cash equivalents at beginning of year | | 335.9 | | 448.8 |
| Cash and cash equivalents at end of period | | 410.7 | | 531.4 |
(1) Dollar amounts represent euro amounts converted at the average
exchange rate for the period of US$1.403 per € (except cash and cash
equivalents balances converted at the closing exchange rate of US$1.294
per € at December 31, 2011 and of US$1.436 per € at December 31, 2010).
ANALYSIS BY OPERATING SEGMENT
|
|
|
| Year ended December 31, 2011 |
(in millions of euros) | | Services |
| Equipment |
| Eliminations and Adjustments |
| Consolidated Total |
| |
|
| Revenues from unaffiliated customers | | 1,631.3 | | 636.4 | | _ | | 2,267.7 |
|
Inter-segment revenues
| |
1.1
| |
179.4
| |
(180.5)
| |
_
|
| Operating revenues | | 1,632.4 | | 815.8 | | (180.5) | | 2,267.7 |
|
Other income from ordinary activities
| |
_
| |
2.3
| |
_
| |
2.3
|
| Total income from ordinary activities | | 1,632.4 | | 818.1 | | (180.5) | | 2,270.0 |
| Operating income (loss) | | 6.2 | | 253.7 | | (112.0) | | 147.9 |
|
| | Year ended December 31, 2011 |
(in millions of US$) | | Services (1) | | Equipment (2) | | Eliminations and Adjustments | | Consolidated Total (3) |
| Revenues from unaffiliated customers | | 2,289.5 | | 890.9 | | _ | | 3,180.4 |
|
Inter-segment revenues
| |
1.5
| |
251.1
| |
(252.6)
| |
_
|
| Operating revenues | | 2,291.0 | | 1,142.0 | | (252.6) | | 3,180.4 |
|
Other income from ordinary activities
| |
_
| |
3.3
| |
_
| |
3.3
|
| Total income from ordinary activities | | 2,291.0 | | 1,145.3 | | (252.6) | | 3,183.7 |
| Operating income (loss) | | 8.5 | | 355.2 | | (156.2) | | 207.5 |
(1) Dollar amounts represent euro amounts converted at the average
exchange rate for the period of US$1.404 per € in 2011.
(2) Dollar
amounts were converted at the average exchange rate of US$1.400 per €
for the Equipment segment.
(3) Dollar amounts for the Consolidated
total were converted at the rate of US$1.403 per €, corresponding to the
weighted average based on each segment’s operating revenues.
ANALYSIS BY OPERATING SEGMENT
|
| Three months ended December 31, 2011 |
(in millions of euros) | | Services |
| Equipment |
| Eliminations and Adjustments |
| Consolidated Total |
| |
|
| Revenues from unaffiliated customers | | 461.5 | | 200.6 | | _ | | 662,1 |
Inter-segment revenues
| |
0.9
| |
38.8
| |
(39.7)
| |
-
|
Operating revenues | | 462.4 | | 239.4 | | (39.7) | | 662.1 |
Other income from ordinary activities
| |
_
| |
0.6
| |
_
| |
0.6
|
Total income from ordinary activities | | 462.4 | | 240.0 | | (39.7) | | 662.7 |
Operating income (loss) | | 7.8 | | 71.9 | | (28.1) | | 51.6 |
|
| Three months ended December 31, 2011 |
(in millions of US$) | | Services |
| Equipment |
| Eliminations and Adjustments |
| Consolidated Total |
| Revenues from unaffiliated customers | | 632.1 | | 273.6 | | _ | | 905.7 |
Inter-segment revenues
| |
1.3
| |
51.9
| |
(53.2)
| |
-
|
Operating revenues | | 633.4 | | 325.5 | | (53.2) | | 905.7 |
Other income from ordinary activities
| |
_
| |
0.8
| |
_
| |
0.8
|
Total income from ordinary activities | | 633.4 | | 326.3 | | (53.2) | | 906.5 |
Operating income (loss) | | 10.8 | | 97.5 | | (37.3) | | 71.0 |
(1) Corresponding to the twelve months ended December 31, 2011 in US
dollars less nine months ended September 30 in US dollars.
Contacts:
Investor Relations Contacts
Paris:
Christophe
Barnini
Tel: +33 1 64 47 38 11
E-Mail: invrelparis@cggveritas.com
or
Houston:
Hovey
Cox
Tel: +1 (832) 351-8821
E-Mail: invrelhouston@cggveritas.com
Source: CGGVeritas
© 2026 Canjex Publishing Ltd. All rights reserved.