Viridien · EURONEXT:VIRI
Viridien — CGG — Q2 2014 Earnings Presentation
20 slides from Viridien's earnings presentation, 2014
Slide 1: 2nd Quarter 2014 Financial Results
2nd Quarter 2014 Financial Results Q2 2013, Q1 2014 and Q2 2014 are presented before Non-Recurring Charges (NRC), unless stated otherwise
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, including, without limitation, statements about CGG (“the Company”) plans, strategies and prospects. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore,
Slide 3: Weak market environment
Weak market environment 2011- 2016 Exploration spending forecast In billion $ 123.1 117.5 118.8 110.4 109.0 106.8 Capex discipline is a key element of the clients’ plans to boost their free cash flow (5)% +10% (7)% In 2014, Exploration investment is (2)% expected to decline by 7% 2011 2012 2013
Slide 4: Accelerating and intensifying the Transformation Plan
Accelerating and intensifying the Transformation Plan Rebalanced business portfolio Reformatting and rebalancing of businesses Accelerating the right-sizing of the fleet from Rebalancing from cyclical and capital 18 to 13 vessels as soon as 2014 intensive businesses to more profitable, less capi
Slide 5: Accelerating and intensifying the Transformation Plan
Accelerating and intensifying the Transformation Plan Tight cash and debt management Cost control Scaling up across the board with 2.5% Strong action across the Group to reduce headcount reduction since Jan 2014 OPEX and G&A expenses More than 10% staff reduction by end 2014 (more than 1000 em
Slide 6: Reduced Acquisition Footprint: Rightsizing of the fleet
Reduced Acquisition Footprint: Rightsizing of the fleet Evolution of CGG streamers count (at end of period) 250 (30)% 200 150 100 50 0 H1-2013 H2-2013 H1-2014 H2-2014 Fleet reduced to 13 seismic vessels by end 2014: Symphony decommissionned 1 vessel retired from the seismic market 2 vessels
Slide 7: Reduced Acquisition Footprint: Land, a shift in business model
Reduced Acquisition Footprint: Land, a shift in business model Land revenue, incl. minority stakes Land revenue, incl. minority stakes (end of 2012) (target 2015) SW&OBS (100)% SW&OBS (40)% Seabed Geosolution JV Argas (49)% New Argas (49)% Middle East Land NAM (100)% Ardiseis(51)% Land RoW (100)% La
Slide 8: GGR multi-client: StagSeis ready on time for GoM lease rounds
GGR multi-client: StagSeis ready on time for GoM lease rounds CGG IBALT / StagSeis footprint 3 year program started in 2012 and finishing end of 2014 20,320km2 data acquired with latest StagSeis technology Trois TROIS Deux IBALT Western & Central GoM lease rounds cycle (number of blocks) Number
Slide 9: 2nd Quarter 2014 Review
2d Quarter 2014 Review Passion for Geoscience « CGG
Slide 10: Q2 2014 Results: Resilient operating income in weaker market conditions
Q2 2014 Results: Resilient operating income in weaker market conditions Group Revenue at $689m, down 15% q-to-q Group Revenue (In million $) Equipment at $196m, down 5% Acquisition at $481m, down 14% 1,032 GGR at $300m, up 3% 806 689 Operating Income at $45m EBIT at $31m, including a $(1
Slide 11: Equipment: Stable profitability sequentially in weak market conditions
Equipment: Stable profitability sequentially in weak market conditions Total sales were $196m, down 5% q-to-q Land Equipment Marine Equipment Revenue (In million $) Lower sales due to weak market conditions from seismic contractors but market share increased 254 External sales at $148m, down 9
Slide 12: Acquisition: Solid operational performance in a weak market
Acquisition: Solid operational performance in a weak market Land & Airborne Acquisition Revenue Acquisition revenue at $481m, down 14% q-to-q Marine (In million $) External revenue at $241m, down 32% 605 559 94 481 Land & Airborne revenue at $74m, down 30% q- 106 74 to-q 511 453 Weak market
Slide 13: GGR: Sustained profitability despite low MC after-sales
GGR: Sustained profitability despite low MC after-sales MC Revenue GGR Revenue SI & Reservoir (In million $) GGR revenue at $300m, up 3% q-to-q 367 Multi-Client at $128m, stable sequentially 206 300 Prefunding revenue was $92m, up 15% 168 290 Low level of multi-client sales due to overall 16
Slide 14: 2nd Quarter 2014 Financial Review
2nd Quarter 2014 Financial Review 14
Slide 15: Q2 2014 Cash Performance
Q2 2014 Cash Performance EBITDAs EBITDAs : $194m, a 28% margin (In million $) Equipment at $50m, a 26% margin 333 Acquisition at $95m, a 20% margin GGR at $159m, a 53% margin 32% 189 194 Cash Flow from Operations at $263m after 23% 28% NRC, up 123% sequentially Total Capex of $262m, stab
Slide 16: Balance Sheet as of end of June 2014
Balance Sheet as of end of June 2014 Total Capital Employed at $6.1bn $(74)m write-off related to Seabed activities (in line with Fugro’s recent announcement) $(37)m write-off related to Brazilian Multi- Client surveys acquired in 2007-2008 Multi-Client library NBV up at $1,012m Increase m
Slide 17: Debt Maturity Profile: No major installment before 2019
Debt Maturity Profile: No major installment before 2019 2013 Pro-forma Senior Debt Maturity Profile (in $m) In April, issue of two new High Yield Bonds Maturity as of end of March extended from 4 years to approximately 6 years Main mandatory debt installment pushed forward to beyond 2019 Ave
Slide 18: Outlook
Outlook Passion for Geoscience ec G G
Slide 19: 2014 Management priorities reaffirmed
2014 Management priorities reaffirmed Weakening Seismic market conditions due to cost cutting measures from our customer base and less predictable exploration spending CGG management intensifying and accelerating its 2014-2016 Transformation Plan Vessel reductions, partnerships, Land NAM sale, sit
Slide 20: Thank you
Thank you Passion for Geoscience ec G G cgg.com