Compagnie Generale de Geophysique: First Half 2001 Results; Significant Improvement in Operating Income.Business Editors PARIS--(BUSINESS WIRE)--Sept. 6, 2001 Compagnie Generale de Geophysique (NYSE NYSE See: New York Stock Exchange :GGY GGY Compagnie Generale de Geophysique (stock symbol) GGY Gross Gaming Yield (percentage of wagers kept by casino/gaming operator) ) published today its consolidated results for the first half of 2001. At Euros 378.1 million (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 339.9 million), revenues for the first half of 2001 are up 28 % compared to the first half year of 2000. Taking into account the change in scope of activities with the acquisition of AkerGeo (5%) and the Euro/USD exchange rate variation across the period (6%), this increase is 17%. The operating result shows a Euros 11.0 million gain, a significant improvement compared to the first half of 2000 operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of Euros 11.1 million. This operating gain is impacted negatively by a non recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. loss of Euros 9 million related to offshore operations in Morocco Morocco, country, Africa Morocco (mərŏk`ō), officially Kingdom of Morocco, kingdom (2005 est. pop. 32,726,000), 171,834 sq mi (445,050 sq km), NW Africa. , affected by exceptionally unfavourable weather conditions throughout the second quarter. It further doesn't include a gain of Euros 4.6 million from subsidiaries consolidated under the equity method, mainly Argas, Saudi Arabian subsidiary for land acquisition. The net result is a Euros 5.1 million loss, compared to the Euros 22.1 million loss of the first half 2000. The geophysical ge·o·phys·ics n. (used with a sing. verb) The physics of the earth and its environment, including the physics of fields such as meteorology, oceanography, and seismology. market gradually improved during the first semester se·mes·ter n. One of two divisions of 15 to 18 weeks each of an academic year. [German, from Latin (cursus) s 2001 and should continue on this trend all along the year. Total revenues for Geophysical Services were Euros 247.0 million (USD 221.9 million), up 22% compared to the first semester 2000. The Land Strategic Business Unit (SBU SBU St. Bonaventure University (St. Bonaventure, New York) SBU Stony Brook University (State University of New York) SBU Southwest Baptist University (Bolivar, MO) ), with Euros 105.7 million (USD 95.0 million) saw its total net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight rise 25 % compared to the first half 2000. On average, 16 crews were in operation across the period, versus 15 a year ago. CGG CGG Compagnie Generale de Geophysique CGG Cytosine-Guanine-Guanine CGG Canadian Grenadier Guards (Canadian reserve military unit) CGG Cancer Genetics Group (Birmingham, UK) maintained its strategy of focusing in countries with recurring activities and high added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
The Offshore SBU with Euros 89.3 million (USD 80.8 million), achieved a 44 % increase in its total sales figure compared to the first half 2000.This growth is due for approximately 30% to the Aker Geo acquisition and for the rest to a strong level of sales of non-exclusive data, especially in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east . On June 30th, 2001, the net book value of the offshore seismic data library remained stable at USD 72 million as compared to USD 70 million at the end of 2000. Most of the second half activity for the Group's six vessels is firmly committed. The Processing-Reservoir SBU saw its total sales drop by 5% at Euros 50.7 million (USD 45.5 million) compared to the first half 2000, reflecting the difficult conditions still prevailing in the conventional processing market. The Group is however further developing its positions in the high-end segments of Imaging and 4D and has boosted its global computing computing - computer power five-fold with a view to increase productivity further with the implementation of PC cluster systems using the new Geocluster software. Sercel increased its total sales to Euros 148.4 million (USD 133.3 million) 50 % above the first half 2000. External sales with Euros 132.4 million (USD118.5 million) were also up 50%. This growth is due to the strong level of sales of land equipment, mainly the 408UL that is confirming its wide market leadership with 43 systems delivered since its launch at the end of 1999. The R&D activity is increasing and new products will be introduced on the market within the coming quarters. The backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. as of September 1, 2001, at Euros 345 million stands more than 10% above its level of December 2000. Quarterly Results: Revenues for the second quarter 2001 were Euros 195.9 million (USD 170.3 million) up 23% compared to the second quarter 2000. Second quarter 2001 total operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for our Geophysical Services were Euros 121.0 million (USD 104.7 million) up 4% from the second quarter 2000. Operating Revenues for Sercel were Euros 83.0 million (USD 72.5 million) up 69% from second quarter 2000. The operating result of the second quarter 2001 was a profit of Euros 10.9 million as compared to a profit of Euros 0.5 million for the second quarter 2000. The net result for the second quarter 2001 was a profit of Euros 1 million as compared to a net loss of Euros 7.2 million for the second quarter 2000. Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Robert Brunck stated: "Taking into accounts our passed operational difficulties in Morocco, these financial results are globally in line with our expectations. Nevertheless if we can be satisfied with Sercel performance, Services for their part remain affected by a still gradually recovering and very competitive market. We will therefore continue to develop our productivity efforts and to apply maximum caution to the management of our operations with a view to our goal of returning to profitability in 2001."
Consolidated Statement
of Earnings
Million of Euros
Period ended Quarter ended
June 30 June 30
2001 2000 2001 2000
Euros Euros
Operating revenues 378,1 295,5 195,9 158,9
Operating profit (loss) 11,0 (11,1) 10,9 0,5
Income (loss) from equity
investments 4,6 0,9 3,1 0,6
Net interest expense (11,7) (6,0) (5,8) (3,3)
Exchange gains (losses) (2,4) (1,8) (2,6) (2,2)
Income taxes (6,6) (5,7) (4,6) (2,0)
Minority interest 0,0 1,6 0,0 (0,8)
Net income (loss) (5,1) (22,1) 1,0 (7,2)
Earnings per share (FF) (0,44) (2,38) 0,08 (0,8)
Summary of cash-flows
Cash flow
from operations 58,8 21,3 20,2 21,4
Capital
expenditures (21,5) (15,7) (11,9) (8,9)
Expenditures financed
by capital leases (1,8) (4,7) 1,8 (4,7)
Investment in
library (31,0) (53,5) (16,8) (31,4)
Adjusted EBITDA 77,0 54,1 40,3 41,0
Equity and net debt
Shareholders' equity 454,0 253,4 454,0 253,4
Net debt 251,8 157,1 251,8 157,1
Gearing ratio 55,5% 62,0% 55,5% 62,0%
Segment information
Operating revenues
Services 247,0 202,4 121,0 115,1
Products 148,4 108,0 83,0 54,0
Elimination (17,3) (14,9) (8,1) (10,2)
Total 378,1 295,5 195,9 158,9
Operating profit (loss)
Services (12,3) (13,8) (4,8) 0,6
Products 30,3 8,4 19,6 3,1
Corporate (3,8) (3,4) (2,1) (1,9)
Elimination (3,2) (2,3) (1,8) (1,3)
Total 11,0 (11,1) 10,9 0,5
The information included herein contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 ge·o·sci·ence n. Any one of the sciences, such as geology or geochemistry, that deals with the earth. ge 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 an international conference call on Thursday 6th of September, at 15:30 pm continental European time and 9:30 am US Eastern which will be broadcasted live on CGG's website: www.cgg.com |
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