Compagnie Generale de Geophysique First Quarter 2004 Results
13 Mai 2004 - 8:00AM
PR Newswire (US)
Compagnie Generale de Geophysique First Quarter 2004 Results Strong
Improvement of the Net Result PARIS, May 13 /PRNewswire-FirstCall/
-- Compagnie Generale de Geophysique (ISIN: 0000120164 - NYSE: GGY)
published today its consolidated results for the first quarter of
2004. Q1 2004 main events: Revenues for the first quarter of 2004
are up 3% in Euros and up 20% in USD compared the first quarter of
2003 Historically high quarterly revenues in dollars at Sercel,
($103M, euro 83M) Improvement of the Group operating result to
$12.6M compared to euro 3.4M in Q1 2003 despite a negative euro/$
exchange rate effect estimated at euro 12M. Sercel operating income
of euro 21.3M representing a 26% operating margin. Q1 profit of
euro 6.1M compared to a net loss of euro 5.5M in Q1 2003. 40% year
on year backlog's growth. Consolidated Statement of Earnings (non
audited) Million of Euros Period ended March 31st 2004 2003
Operating revenues 161.8 156.7 Operating profit (loss) 12.6 3.4
Income (loss) from equity investments 2.1 3.0 Goodwill depreciation
(2.0) (1.5) Net interest expenses (6.3) (8.4) Exchange gains
(losses) 4.6 0.8 Income taxes (4.9) (2.7) Minority interest (0.1)
Net income (loss) 6.1 (5.5) Earnings per share (Euros) 0.52 (0.47)
Revenues: At Euros 162 million (USD 202 million), revenues for the
first quarter of 2004 were up 3% in Euros and 20% in USD compared
to Euros 157 million (USD 168 million) for the first quarter of
2003. Total revenues for Geophysical Services for the first quarter
2004 were Euros 83 million (USD 104 million), down 34% in Euros and
23% in USD compared to Euros 125 million (USD 134 million) for the
first quarter of 2003. The Land activity saw its total sales for
the first quarter 2004 decreased by 52% in Euros and 44% in dollars
to Euros 25 million (USD 31 million) compared to Euros 51 million
(USD 55 million) for the first quarter of 2003. On average, 9 crews
were in operation across the period, compared to 14 last year.
During this quarter, the land acquisition SBU operated in line with
the economical targets of its restructuring plan. The Offshore
revenues at Euros 35 million (USD 44 million) for the first quarter
2004, were down 25% in Euros and 12% in dollars compared to Euros
46 million (USD 50 million) for the first quarter of 2003,
reflecting in particular a low level of prices in the exclusive
offshore acquisition market. During the quarter, the vessels were
operating at 60% on exclusive contracts compared to 20% last year.
The net book value of the offshore seismic data library at the end
of March 2004 was Euros 152 million, following Euros 16.8 million
sales and Euros 18.0 million of investments in the quarter. For the
first quarter 2004, Processing and Reservoir revenues were Euros 23
million (USD 29 million), down 15 % in Euros and stable in USD
compared to Euros 28 million (USD 29 million) for the first quarter
of 2003 in a market where CGG maintained its positions. For the
first quarter 2004, Sercel total sales were Euros 83 million (USD
103 million), up 120 % in Euros and up 152% in USD, compared to
Euros 38 million (USD 41 million) for the first quarter of 2003.
External sales for the first quarter 2004 were Euros 79 million
(USD 97 million). Within a growing geophysical equipment market,
Sercel reached a historically high quarterly revenue level
expressed in dollars resulting from strong land equipment
deliveries corresponding to orders booked at the end of 2003 and
from a renewed growth in the marine equipment market. Operating
Result: The Group Operating Result for the first quarter 2004 was a
Euros 12.6 million profit compared to a Euros 3.4 million profit
for the first quarter of 2003. The increase in the operating margin
results exclusively from the excellent operating performance of
Sercel. Despite an unfavourable euro/$ exchange rate estimated at
4% of margin points, Sercel's operating profit for the first
quarter of 2004 was Euros 21.3 million, a 26% operating margin,
compared to an operating profit of Euros 5.2 million in Q1 2003.
The Geophysical Services operating result was a loss of Euros 7.3
million compared to a profit of Euros 1.2 million for the same
period last year. This decrease of operating performance is mainly
due to the combined negative effect of the euro/$ exchange rate
estimated at Euros 4 million and to low marine prices still
suffering from the sector's overcapacity. Segment information
Million of Euros Period ended March 31st 2004 2003 Operating
revenues Services 83.9 125.7 Products 82.8 37.7 Elimination (4.9)
(6.7) Total 161.8 156.7 Operating profit (loss) Services (7.3) 1.2
Products 21.3 5.2 Corporate (2.4) (2.7) Elimination 1.0 (0.3) Total
12.6 3.4 Operating Result Before Depreciation and Amortization :
The Operating Result Before Depreciation and Amortization, "ORBDA",
previously denominated "Adjusted EBITDA" in our precedent financial
reports is defined as operating income (loss) excluding
non-recurring revenues (expenses) plus depreciation, amortization
and additions (deductions) to valuation allowances of assets and
add-back of dividends received from equity companies. The ORBDA for
the first quarter 2004 is Euros 35.4 million, 22% of the revenues.
Summary of cash-flows Million of Euros Period ended March 31st 2004
2003 Cash flow from operations 39.9 48.2 Capital expenditures
(13.1) (9.4) Investment in library (18.0) (32.3) ORBDA 35.4 46.7
Net Result: Net result for the first quarter 2004 was a Euros 6.1
million profit, compared to a Euros 5.5 million loss for the first
quarter 2003. Balance Sheet items: As of March 31st 2004, net
equity stood at Euros 410 million and net debt at Euros 173 million
representing a 42% gearing ratio. The increase of Euros 34 million
in net debt compared to year-end 2003 results exclusively from the
payments of the recent Sercel acquisitions and from the cash
disbursements of the land acquisition restructuring program, while
operating activities provided a positive net cash flow during the
period. Equity and Net Debt Million of Euros 31/03/2004 31/12/2003
Shareholders' equity 409.8 396.6 Net debt 173.0 139.2 Gearing ratio
42.2 % 35.1 % Backlog and 2004 perspectives: The backlog as of May
1st 2004 stood at USD 305 million up 40% compared to the same
period last year. This strong backlog will favourably impact the
second semester, in particular the Geophysical Services with the
second quarter representing a low point. After an exceptional first
quarter, Sercel will see a good level of activity across the year.
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. -- Robert
Brunck, Chairman and CEO, will comment on the results during the
shareholders meeting at 9:30 am - 10, avenue d'Iena (Hubert
Roussellier Amphitheatre) - Paris 16th arrondissement. -- Copies of
his presentation for this conference will be posted on CGG web site
and can be downloaded. -- An English language conference call is
scheduled at 3 p.m. (Paris time) - 8 am (US CT) - 9 am (US ET). To
take part in the English language conference, simply dial five to
ten minutes prior to the scheduled start time. -- International
call-in : 1 719 457 2679 -- US call-in : (800) 500 01 77 -- Replay
: (719) 457 0820 & (888) 203 1112 You will be asked for the
name of the conference: "CGG Q1 2004 Results" and the name of the
Chairman of the Board of Directors: "Robert Brunck". This
conference will be broadcast live on CGG's website and replays will
be available for a month thereafter. DATASOURCE: Compagnie Generale
de Geophysique CONTACT: Christophe Pettenati-Auziere,
+33-1-64-47-36-75, or Christophe Barnini, +33-1-64-47-38-10, , both
of Compagnie Generale de Geophysique
Copyright