CGPVF - CGG Announces its Q3 2023 Results
Strong Financial Results
Revenue at $307 million, up 42% y-o-y
EBITDAs at $109 million, up 41% y-o-y
Positive Net Cash Flow of $63 million
PARIS, France – November 6, 2023 – CGG (ISIN: FR0013081864), a global technology and high-performance computing (HPC) leader, announced today its third quarter 2023 non-audited results.
Commenting on these results, Sophie Zurquiyah, CGG CEO, said:
“Our third-quarter results are in line with our expectations for year-on-year growth and demonstrate the strengthening operational and cash performance across all businesses. As our clients increase their focus around adding new reserves, demand for our high-end technology, data and services drove strong performance for our core activities.
Our Beyond the Core businesses are supported by strong momentum in the Digital, Energy Transition, and Infrastructure Monitoring markets, notably in HPC. To strengthen our technology differentiation and support our growth ambitions, we opened a new UK HPC Hub which will extend our global capacity to ~500 petaFLOPS, keeping CGG’s position as the #1 industrial HPC in the world. We are uniquely addressing the needs of our new clients’ high-end scientific and AI applications, as evidenced by another new contract signed this quarter .”
Q3 2023 key figures: Strong financial results
YTD 2023 key figures: Solid financial results
Balance Sheet
|
Key Figures - Third Quarter 2023
| Key Figures IFRS - Quarter In million $ |
| 2022 Q3 |
| 2023 Q3 |
| Variances % |
| Operating revenues |
| 255 |
| 293 |
| 15% |
| Operating Income / (loss) |
| 28 |
| 42 |
| 52% |
| Equity from Investment |
| (0) |
| 1 |
| - |
| Net cost of financial debt |
| (24) |
| (26) |
| (7)% |
| Other financial income / (loss) |
| (1) |
| (5) |
| - |
| Income taxes |
| (4) |
| (4) |
| (3)% |
| Net Income / (Loss) from continuing operations |
| (1) |
| 8 |
| 741% |
| Net Income / (Loss) from discontinued operations |
| (0) |
| 0 |
| 181% |
| Group net income / (loss) |
| (2) |
| 8 |
| 624% |
| Operating cash flow |
| 37 |
| 145 |
| - |
| Net cash flow |
| (77) |
| 63 |
| - |
| Net debt |
| 976 |
| 1,008 |
| 3% |
| Net debt before lease liabilities |
| 889 |
| 921 |
| 4% |
| Capital employed |
| 2,006 |
| 2,098 |
| 5% |
Key Segment Figures - Third Quarter 2023
| Key Segment Figures - Quarter In million $ |
| 2022 Q3 |
| 2023 Q3 |
| Variances % |
| Segment revenue |
| 217 |
| 307 |
| 42% |
| Segment EBITDAs |
| 77 |
| 109 |
| 41% |
| EBITDAs margin |
| 35% |
| 35% |
| (0) bps |
| Segment operating income / (loss) |
| 25 |
| 33 |
| 31% |
| Opinc margin |
| 12% |
| 11% |
| (1) bps |
| IFRS 15 adjustment |
| 2 |
| 9 |
| 291% |
| IFRS operating income / (loss) |
| 28 |
| 42 |
| 52% |
| Operating cash flow |
| 37 |
| 145 |
| - |
| Segment net cash flow |
| (77) |
| 62 |
| - |
Key figures bridge: Segment to IFRS - Third Quarter 2023
| P&L items In million $ |
| Segment figures |
| IFRS 15 adjustment |
| IFRS figures |
| Total Revenue |
| 307 |
| (14) |
| 293 |
| OPINC |
| 33 |
| 9 |
| 42 |
| Cash Flow Statement items In million $ |
| Segment figures |
| IFRS 15 adjustment |
| IFRS figures |
| EBITDAs |
| 109 |
| (14) |
| 95 |
| Change in Working Capital & Provisions |
| 31 |
| 14 |
| 44 |
| Cash Provided by Operations |
| 145 |
| (0) |
| 144 |
| Earth Data Data Library NBV In million $ |
| Segment figures |
| IFRS 15 adjustment |
| IFRS figures |
| Opening Balance Sheet , Jun 1 st 23 |
| 364 |
| 95 |
| 459 |
| Closing Balance Sheet , Sep 30 th 23 |
| 359 |
| 117 |
| 476 |
Third Quarter 2023 Segment Financial Results
Digital, Data and Energy Transition (DDE)
| Data, Digital & Energy Transition (DDE) In million $ |
| 2022 Q3 |
| 2023 Q3 |
| Variances % |
| Segment revenue |
| 131 |
| 185 |
| 41% |
| Geoscience |
| 69 |
| 78 |
| 13% |
| Earth Data |
| 62 |
| 107 |
| 74% |
| Prefunding |
| 19 |
| 55 |
| - |
| After-Sales |
| 43 |
| 52 |
| 21% |
| DDE proforma |
| 131 |
| 185 |
| 42% |
| Segment EBITDAs |
| 64 |
| 104 |
| 62% |
| EBITDAs Margin |
| 49% |
| 56% |
| 7 bps |
| Segment operating income |
| 21 |
| 37 |
| 79% |
| OPINC Margin |
| 16% |
| 20% |
| 4 bps |
| Capital employed (in billion $) |
| 1.5 |
| 1.5 |
| 3% |
| Other Key Metrics |
| Multi-Client cash capex () |
| (72) |
| (50) |
| (31)% |
| Multi-Client cash prefunding rate (%) |
| 26% |
| 111% |
| 85 bps |
Digital, Data and Energy Transition (DDE) segment revenue was $185 million, up 41% year-on-year.
- Geoscience (GEO) revenue was $78 million, up 13% year-on-year.
Geoscience activity remains solid across all regions sustained by increasing demand worldwide for OBN imaging, higher resolution images and quick processing turnaround. The level of commercial activity continues to be strong with order intakes up 6% year-on-year.
- Earth Data (EDA) revenue was $107 million up 74% year-on-year.
Earth Data cash capex was $(50) million this quarter, down (31)% year-on-year with one OBN program offshore Norway and a few reprocessing projects. Prefunding revenue was $55 million and almost tripled year-on-year while prefunding rate was high at 111%. After-sales were solid at $52 million this quarter, up 21% year-on-year.
The segment library Net Book Value was $359 million ($476 million after IFRS 15 adjustments) at the end of September 2023.
DDE segment EBITDAs was $104 million, up 62% year-on-year and including $(20) million was this quarter paid to Sheawater for compensation fees. DDE segment EBITDAs margin was 56% margin.
DDE segment operating income was $37 million, up 79% year-on-year, and a 20% margin.
DDE capital employed were stable at $1.5 billion at the end of September 2023.
Sensing and Monitoring (SMO)
| Sensing & Monitoring (SMO) In million $ |
| 2022 Q3 |
| 2023 Q3 |
| Variances % |
| Segment revenue |
| 86 |
| 122 |
| 42% |
| Land |
| 50 |
| 58 |
| 16% |
| Marine |
| 22 |
| 45 |
| 103% |
| Downhole gauges |
| 4 |
| 6 |
| 38% |
| Non Oil & Gas |
| 10 |
| 13 |
| 34% |
| Segment EBITDAs |
| 18 |
| 12 |
| (33)% |
| EBITDAs margin |
| 21% |
| 10% |
| (11) bps |
| Segment operating income / (loss) |
| 11 |
| 5 |
| (56)% |
| OPINC Margin |
| 13% |
| 19% |
| 6 bps |
| Capital employed (in billion $) |
| 0.6 |
| 0.6 |
| (0)% |
Sensing and Monitoring (SMO) segment revenue was $122 million, up 42% year-on-year.
- High level of land equipment sales at $58 million mainly for North Africa and Middle-East.
- Marine equipment at $45 million driven by major sales of GPR ocean bottom nodes
- Downhole sales were $6 million, up 38% year-on-year.
- Beyond the Core revenues were high at $13 million, up 34% year-on-year.
SMO segment EBITDAs was $12 million and an exceptional 10% margin this quarter due to large deliveries of low margin equipment.
SMO segment operating income was $5 million.
SMO capital employed were $0.6 billion at the end of September 2023.
Third Quarter 2023 Financial Results
| Consolidated Income Statements In million $ |
| 2022 Q3 |
| 2023 Q3 |
| Variances % |
| Exchange rate euro/dollar |
| 1.02 |
| 1.09 |
| 7% |
| Segment revenue |
| 217 |
| 307 |
| 42% |
| DDE |
| 131 |
| 185 |
| 41% |
| Sensing & Monitoring |
| 86 |
| 122 |
| 42% |
| Segment Gross Margin |
| 54 |
| 67 |
| 25% |
| Segment EBITDAs |
| 77 |
| 109 |
| 41% |
| DDE |
| 64 |
| 104 |
| 62% |
| Sensing & Monitoring |
| 18 |
| 12 |
| (33)% |
| Corporate |
| (4) |
| (7) |
| (66)% |
| Elim & Other |
| (1) |
| (0) |
| 70% |
| Segment operating income |
| 25 |
| 33 |
| 31% |
| DDE |
| 21 |
| 37 |
| 79% |
| Sensing & Monitoring |
| 11 |
| 5 |
| (56)% |
| Corporate |
| (5) |
| (8) |
| (59)% |
| Elim & Other |
| (1) |
| (0) |
| 68% |
| IFRS 15 adjustment |
| 2 |
| 9 |
| - |
| IFRS operating income |
| 28 |
| 42 |
| 52% |
| Equity from investments |
| (0) |
| 1 |
| - |
| Net cost of financial debt |
| (24) |
| (26) |
| (7)% |
| Other financial income (loss) |
| (1) |
| (5) |
| - |
| Income taxes |
| (4) |
| (4) |
| (3)% |
| Net income / (loss) from continuing operations |
| (1) |
| 8 |
| - |
| Net income / (loss) from discontinued operations |
| (0) |
| 0 |
| 181% |
| IFRS net income / (loss) |
| (2) |
| 8 |
| - |
| Shareholder's net income / (loss) |
| (1) |
| 8 |
| - |
| Basic Earnings per share in $ |
| (0.00) |
| 0.05 |
| - |
| Basic Earnings per share in € |
| (0.00) |
| 0.05 |
| - |
Segment revenue was $307 million, up 42%. The respective contributions from the Group’s businesses were 25% from GEO, 35% from EDA (60% for the DDE segment) and 40% from the SMO segment.
Segment EBITDAs was $109 million, including $(20) million compensation fees to Shearwater and up 41% year-on-year, a 35% margin.
Segment operating income was $33 million, up 31% year-on-year and a 11% margin. IFRS 15 adjustment was $9 million and IFRS operating income was $42 million.
Cost of financial debt was $(26) million. Taxes were at $(4) million.
Net income from continuing operations was $8 million and Group net income was at $8 million / €8 million.
Third Quarter 2023 Cash Flow
| Cash Flow items In million $ |
| 2022 Q3 |
| 2023 Q3 |
| Variances % |
| Segment Operating Cash Flow |
| 37 |
| 145 |
| 289% |
| CAPEX |
| (82) |
| (59) |
| (28)% |
| Industrial |
| (6) |
| (6) |
| 6% |
| R&D |
| (4) |
| (3) |
| (24)% |
| Multi-Client (Cash) |
| (72) |
| (50) |
| (31)% |
| Marine MC |
| (72) |
| (50) |
| (31)% |
| Land MC |
| (0) |
| 0 |
| (100)% |
| Proceeds from disposals of assets |
| (15) |
| (2) |
| 89% |
| Segment Free Cash Flow |
| (61) |
| 84 |
| 238% |
| Lease repayments |
| (12) |
| (13) |
| (9)% |
| Asset financing |
| 1 |
| 1 |
| 22% |
| Paid Cost of debt |
| 0 |
| (2) |
| - |
| Free cash flow from discontinued operations |
| (6) |
| (7) |
| (14)% |
| Net Cash flow |
| (78) |
| 63 |
| 181% |
| Financing cash flow |
| 0 |
| (3) |
| - |
| Forex and other |
| (14) |
| (4) |
| 70% |
| Net increase/(decrease) in cash |
| (92) |
| 55 |
| 160% |
| Supplementary information |
| Change in working capital & provisions, included in Segment Operating Cash Flow |
| (40) |
| 31 |
| 163% |
Segment operating cash flow was $145 million up 289%, including $31 million positive change in working capital & provisions.
Total capex was $(59) million:
- Industrial capex was $(6) million
- R&D capex was $(3) million
- Earth Data cash capex was $(50) million
Segment free cash flow was $84 million .
After $(12) million lease repayments and asset financing, $(2) million cash cost of debt and $(7) million cash costs related to discontinued operations, Net Cash flow was $63 million.
9 months 2023 Financial Results
| Consolidated Income Statements In million $ |
| 2022 YTD Sep |
| 2023 YTD Sep |
| Variances % |
| Exchange rate euro/dollar |
| 1.07 |
| 1.08 |
| 1% |
| Segment revenue |
| 610 |
| 805 |
| 32% |
| DDE |
| 444 |
| 471 |
| 6% |
| SMO |
| 165 |
| 334 |
| 102% |
| Elim & Other |
| 0 |
| (0) |
| - |
| Segment Gross Margin |
| 170 |
| 225 |
| 33% |
| Segment EBITDAs |
| 241 |
| 278 |
| 15% |
| DDE |
| 256 |
| 250 |
| (2)% |
| SMO |
| (1) |
| 48 |
| - |
| Corporate |
| (10) |
| (16) |
| (59)% |
| Elim & Other |
| (3) |
| (3) |
| 19% |
| Segment operating income |
| 86 |
| 123 |
| 43% |
| DDE |
| 125 |
| 119 |
| (5)% |
| SMO |
| (23) |
| 25 |
| - |
| Corporate |
| (12) |
| (18) |
| (45)% |
| Elim & Other |
| (4) |
| (3) |
| 20% |
| IFRS 15 adjustment |
| 11 |
| 7 |
| (35)% |
| IFRS operating income |
| 97 |
| 130 |
| 34% |
| Equity from investments |
| (0) |
| 1 |
| - |
| Net cost of financial debt |
| (75) |
| (76) |
| (1)% |
| Other financial income (loss) |
| 2 |
| (2) |
| (166)% |
| Income taxes |
| (27) |
| (25) |
| 8% |
| NRC (Tax & OFI) |
| 0 |
| 0 |
| - |
| Net income / (loss) from continuing operations |
| (2) |
| 29 |
| - |
| Net income / (loss) from discontinued operations |
| (2) |
| 2 |
| 196% |
| IFRS net income / (loss) |
| (4) |
| 31 |
| 886% |
| Shareholder's net income / (loss) |
| (3) |
| 29 |
| - |
| Basic Earnings per share in $ |
| (0.00) |
| 0.04 |
| - |
| Basic Earnings per share in € |
| (0.00) |
| 0.04 |
| - |
Segment revenue was $805 million, up 32% year-on-year. The respective contributions from the Group’s businesses were 30% from Geoscience, 29% from Earth Data (59% for the DDE segment) and 41% from Sensing & Monitoring.
DDE segment revenue was $471 million, up 6% year-on-year.
Geoscience revenue was $238 million, up 11% year-on-year.
Earth Data sales reached $234 million, up 2% year-on-year. Prefunding revenue was $132 million, up 92% year-on-year. Earth Data cash capex was $(142) million, down (21)% year-on-year and cash prefunding rate at the end of September was 93%.
After-sales were $101 million, down (37)% or down (5)% when adjusted from exceptional transfer fees in Q2 2022.
SMO segment revenue was $334 million, up 102% year-on-year.
Segment EBITDAs was $278 million, including $(31)m compensation fees to Shearwater and up 15% year-on-year, a 35% margin. DDE EBITDA margin was 53% and Sensing & Monitoring EBITDA margin was 14%.
Segment operating income was $123 million, up 43% and a 15% margin.
IFRS 15 adjustment at operating income level was $7 million and IFRS operating income , after IFRS 15 adjustment, was $130 million.
Cost of financial debt was $(76) million. The total amount of interest paid was $(47) million.
Other financial items were $(2) million.
Taxes were at $(25) million.
Net income from continuing operations was $29 million compared to $(2) million last year.
Group net income attributable to CGG’s shareholders was $31 million / €29 million.
Cash Flow
| Cash Flow items In million $ |
| 2022 YTD Sep |
| 2023 YTD Sep |
| Variances % |
| Segment Operating Cash Flow |
| 243 |
| 257 |
| 6% |
| CAPEX |
| (210) |
| (190) |
| (9)% |
| Industrial |
| (15) |
| (36) |
| 142% |
| R&D |
| (15) |
| (12) |
| (17)% |
| Earth Data (Cash) |
| (180) |
| (142) |
| (21)% |
| Marine Offshore |
| (179) |
| (142) |
| (21)% |
| Land Onshore |
| (1) |
| 0 |
| (100)% |
| Proceeds from disposals of assets |
| 1 |
| (2) |
| - |
| Segment Free Cash Flow |
| 35 |
| 65 |
| 88% |
| Lease repayments |
| (37) |
| (38) |
| (4)% |
| Asset financing |
| 1 |
| 22 |
| - |
| Paid Cost of debt |
| (47) |
| (47) |
| 1% |
| Free cash flow from discontinued operations |
| (17) |
| (17) |
| (1)% |
| Net Cash flow |
| (65) |
| (15) |
| 77% |
| Financing cash flow |
| 2 |
| (2) |
| (190)% |
| Forex and other |
| (31) |
| (6) |
| 79% |
| Net increase/(decrease) in cash |
| (94) |
| (23) |
| 75% |
| Supplementary information |
| Change in working capital & provisions, included in Segment Operating Cash Flow |
| 9 |
| (18) |
| (303)% |
Segment operating cash flow was $257 million up 6%, including $(18) million negative change in working capital & provisions.
Capex was $(190) million, down (9)% year-on-year:
Industrial capex was $(36) million,
Research & development capex was $(12) million,
Earth Data cash capex was $(142) million, down (21)% year-on-year.
Segment free cash flow was $65 million.
After the payment of interest expenses of $(47) million, lease repayments of $(38) million, asset financing of $22 million and $(17) millon of cash flow from discontinued operations, Group net cash flow was $(15) million , compared to $(65) million for the 9 months of 2022.
Balance Sheet
Group’s liquidity amounted to $275 million and c ash liquidity including $95 million undrawn RCF amounted to $370 million at the end of September, 2023.
Group gross debt before IFRS 16 was $1,197 million and net debt was $921 million at the end of September, 2023.
Group gross debt after IFRS 16 was $1,283 million and net debt was $1,008 million at the end of September, 2023.
Segment leverage ratio of Net debt to adjusted Segment EBITDAs was 2.3x at the end of September 2023.
Q3 2023 Conference call
- The press release and the presentation are available on our website www.cgg.com
- An English language analysts conference call is scheduled the same day at 6.30 pm (CET)
Participants should register for the call here to receive a dial-in number and code or participate in the live webcast from here.
A replay of the conference call will be made available the day after for a period of 12 months in audio format on the Company's website www.cgg.com .
About CGG
CGG ( www.cgg.com ) is a global technology and HPC leader that provides data, products, services and solutions in Earth science, data science, sensing and monitoring. Our unique portfolio supports our clients in efficiently and responsibly solving complex digital, energy transition, natural resource, environmental, and infrastructure challenges for a more sustainable future. CGG employs around 3,500 people worldwide and is listed on the Euronext Paris SA (ISIN: 0013081864).
Contacts
| Group Communications & Investor Relations Christophe Barnini Tel: + 33 1 64 47 38 11 E-Mail: christophe.barnini@cgg.com |
CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2023
Unaudited Interim Consolidated statements of operations
| Nine months ended September 30, |
| (In millions of US$, except per share data) |
| Notes |
| 2023 |
| 2022 |
| Operating revenues |
| 8 |
| 810.4 |
| 658.5 |
| Other income from ordinary activities |
| 0.2 |
| 0.5 |
| Total income from ordinary activities |
| 810.6 |
| 659.0 |
| Cost of operations |
| (578.0) |
| (477.8) |
| Gross profit |
| 232.6 |
| 181.2 |
| Research and development expenses - net |
| (20.5) |
| (12.5) |
| Marketing and selling expenses |
| (26.6) |
| (21.8) |
| General and administrative expenses |
| (54.2) |
| (51.0) |
| Other revenues (expenses) - net |
| 9 |
| (0.9) |
| 1.4 |
| Operating income (loss) |
| 8 |
| 130.4 |
| 97.3 |
| Cost of financial debt, gross |
| (79.5) |
| (75.7) |
| Income provided by cash and cash equivalents |
| 4.0 |
| 1.1 |
| Cost of financial debt, net |
| (75.5) |
| (74.6) |
| Other financial income (loss) |
| 10 |
| (1.6) |
| 2.4 |
| Income (loss) before incomes taxes and share of income (loss) from companies accounted for under the equity method |
| 53.3 |
| 25.1 |
| Income taxes |
| (24.6) |
| (26.6) |
| Net income (loss) before share of income (loss) from companies accounted for under the equity method |
| 28.7 |
| (1.5) |
| Net income (loss) from companies accounted for under the equity method |
| 0.5 |
| (0.1) |
| Net income (loss) from continuing operations |
| 29.2 |
| (1.6) |
| Net income (loss) from discontinued operations |
| 3 |
| 2.3 |
| (2.4) |
| Consolidated net income (loss) |
| 31.5 |
| (4.0) |
| Attributable to : |
| Owners of CGG S.A |
| $ |
| 28.0 |
| (2.8) |
| Non-controlling interests |
| $ |
| 3.5 |
| (1.2) |
| Net income (loss) per share (a) |
| Basic |
| $ |
| 0.04 |
| — |
| Diluted |
| $ |
| 0.04 |
| — |
| Net income (loss) from continuing operations per share (a) |
| Basic |
| $ |
| 0.04 |
| — |
| Diluted |
| $ |
| 0.04 |
| — |
| Net income (loss) from discontinued operations per share (a) |
| Basic |
| $ |
| - |
| — |
| Diluted |
| $ |
| - |
| — |
(a) Earning per share is presented as nil being less than US$0.01.
Unaudited Interim Consolidated statements of financial position
| (In millions of US$) |
| Notes |
| September 30, 2023 |
| December 31, 2022 |
| ASSETS |
| Cash and cash equivalents |
| 275.1 |
| 298.0 |
| Trade accounts and notes receivable, net |
| 316.3 |
| 308.3 |
| Inventories and work-in-progress, net |
| 237.5 |
| 257.2 |
| Income tax assets |
| 11.3 |
| 53.4 |
| Other current financial assets, net |
| - |
| 0.1 |
| Other current assets, net |
| 136.4 |
| 99.9 |
| Total current assets |
| 976.6 |
| 1,016.9 |
| Deferred tax assets |
| 20.6 |
| 24.2 |
| Other non-current assets, net |
| 11.5 |
| 8.2 |
| Investments and other financial assets, net |
| 20.9 |
| 18.4 |
| Investments in companies under the equity method |
| 11.2 |
| 10.8 |
| Property, plant and equipment, net |
| 4 |
| 180.1 |
| 167.3 |
| Intangible assets, net |
| 603.9 |
| 554.2 |
| Goodwill, net |
| 1,091.9 |
| 1,089.4 |
| Total non-current assets |
| 1,940.1 |
| 1,872.5 |
| TOTAL ASSETS |
| 2,916.7 |
| 2,889.4 |
| LIABILITIES AND EQUITY |
| Financial debt – current portion |
| 5 |
| 96.1 |
| 60.4 |
| Trade accounts and notes payables |
| 89.0 |
| 92.0 |
| Accrued payroll costs |
| 76.8 |
| 85.6 |
| Income taxes payable |
| 27.9 |
| 27.2 |
| Advance billings to customers |
| 24.1 |
| 29.4 |
| Provisions — current portion |
| 15.8 |
| 17.6 |
| Other current financial liabilities |
| 21.0 |
| 20.0 |
| Other current liabilities |
| 214.9 |
| 222.1 |
| Total current liabilities |
| 565.6 |
| 554.3 |
| Deferred tax liabilities |
| 28.9 |
| 18.7 |
| Provisions — non-current portion |
| 31.1 |
| 28.6 |
| Financial debt – non-current portion |
| 5 |
| 1,186.9 |
| 1,188.8 |
| Other non-current financial liabilities |
| 5.9 |
| 21.8 |
| Other non-current liabilities |
| 7.8 |
| 18.4 |
| Total non-current liabilities |
| 1,260.6 |
| 1,276.3 |
| Common stock: 1,105,308,172 shares authorized and 713,676,258 shares with a €0.01 nominal value outstanding at September 30, 2023 |
| 8.7 |
| 8.7 |
| Additional paid-in capital |
| 118.7 |
| 118.6 |
| Retained earnings |
| 996.9 |
| 967.9 |
| Other Reserves |
| 39.3 |
| 50.0 |
| Treasury shares |
| (20.1) |
| (20.1) |
| Cumulative income and expense recognized directly in equity |
| (3.2) |
| (3.4) |
| Cumulative translation adjustment |
| (90.7) |
| (102.4) |
| Equity attributable to owners of CGG S.A. |
| 1,049.6 |
| 1,019.3 |
| Non-controlling interests |
| 40.9 |
| 39.5 |
| Total equity |
| 1,090.5 |
| 1,058.8 |
| TOTAL LIABILITIES AND EQUITY |
| 2,916.7 |
| 2,889.4 |
Unaudited Interim Consolidated statements of cash flow
| Nine months ended September 30, |
| (In millions of US$) |
| Notes |
| 2023 |
| 2022 |
| OPERATING ACTIVITIES |
| Consolidated net income (loss) |
| 31.5 |
| (4.0) |
| Less: Net income (loss) from discontinued operations |
| 3 |
| (2.3) |
| 2.4 |
| Net income (loss) from continuing operations |
| 29.2 |
| (1.6) |
| Depreciation, amortization and impairment |
| 8 |
| 63.3 |
| 65.2 |
| Earth Data surveys impairment and amortization |
| 8 |
| 99.8 |
| 136.9 |
| Depreciation and amortization capitalized in Earth Data surveys |
| (11.8) |
| (11.7) |
| Variance on provisions |
| 0.5 |
| (0.8) |
| Share-based compensation expenses |
| 1.7 |
| 2.3 |
| Net (gain) loss on disposal of fixed and financial assets |
| 0.1 |
| (3.9) |
| Share of (income) loss in companies recognized under equity method |
| (0.5) |
| 0.1 |
| Other non-cash items |
| 1.8 |
| (2.4) |
| Net cash-flow including net cost of financial debt and income tax |
| 184.1 |
| 184.1 |
| Less : Cost of financial debt |
| 75.5 |
| 74.6 |
| Less : Income tax expense (gain) |
| 24.6 |
| 26.6 |
| Net cash-flow excluding net cost of financial debt and income tax |
| 284.2 |
| 285.3 |
| Income tax paid (c) |
| (3.8) |
| (3.8) |
| Net cash-flow before changes in working capital |
| 280.4 |
| 281.5 |
| Changes in working capital |
| (23.5) |
| (38.8) |
| - change in trade accounts and notes receivable |
| (29.4) |
| 30.0 |
| - change in inventories and work-in-progress |
| 17.4 |
| (69.8) |
| - change in other current assets |
| 6.6 |
| 5.1 |
| - change in trade accounts and notes payable |
| (0.4) |
| 36.1 |
| - change in other current liabilities |
| (17.7) |
| (40.2) |
| -Impact of changes in exchange rate on financial items |
| 0.0 |
| - |
| Net cash-flow from operating activities |
| 256.9 |
| 242.7 |
| INVESTING ACTIVITIES |
| Total capital expenditures (tangible and intangible assets) net of variation of fixed assets suppliers, excluding Earth Data surveys) |
| 4 |
| (48.3) |
| (29.6) |
| Investment in Earth Data surveys |
| (141.7) |
| (179.9) |
| Proceeds from disposals of tangible and intangible assets (a) |
| - |
| 33.1 |
| Proceeds from divestment of activities and sale of financial assets |
| - |
| 4.8 |
| Acquisition of investments, net of cash and cash equivalents acquired (b) |
| (1.9) |
| (36.7) |
| Variation in subsidies for capital expenditures |
| - |
| (0.1) |
| Variation in other non-current financial assets |
| (2.9) |
| (6.7) |
| Net cash-flow used in investing activities |
| (194.8) |
| (215.1) |
(a) Sale and leaseback of CGG headquarters in 2022
(b) Includes a partial earn-out payment following the acquisition of Geocomp in 2022
(c) Includes settlement of tax audit Mexico for US$ 5,1 milllion which was accrued on December 2022
| Nine months ended September 30, |
| (In millions of US$) |
| Notes |
| 2023 |
| 2022 |
| FINANCING ACTIVITIES |
| Repayment of long-term debt |
| 5 |
| (1.5) |
| - |
| Total issuance of long-term debt |
| 5 |
| 23.0 |
| - |
| Lease repayments |
| 5 |
| (37.9) |
| (36.6) |
| Financial expenses paid |
| 5 |
| (46.5) |
| (46.9) |
| Loan granted |
| - |
| 1.7 |
| Net proceeds from capital increase: |
| - |
| 0.4 |
| — from Owner of CGG |
| - |
| 0.4 |
| — from non-controlling interests of integrated companies |
| - |
| — |
| Dividends paid and share capital reimbursements: |
| — to owners of CGG |
| - |
| — |
| — to non-controlling interests of integrated companies |
| (0.8) |
| (0.9) |
| Net cash-flow provided by (used in) financing activities |
| (63.7) |
| (82.2) |
| Effects of exchange rates on cash |
| (4.3) |
| (23.1) |
| Net cash flows incurred by discontinued operations |
| 3 |
| (17.0) |
| (16.4) |
| Net increase (decrease) in cash and cash equivalents |
| (22.9) |
| (94.1) |
| Cash and cash equivalents at beginning of year |
| 298.0 |
| 319.2 |
| Cash and cash equivalents at end of period |
| 275.1 |
| 225.1 |
Attachment