Acceder

El rincon de tutamen.

696 respuestas
El rincon de tutamen.
26 suscriptores
El rincon de tutamen.
Página
33 / 47
#481

Re: El rincon de tutamen.

15$. Pero espero ver a la plata en 50
#482

Re: El rincon de tutamen.

CGG

Decepción resultados

PARIS, 29 juillet (Reuters) - CGG <GEPH.PA>, qui a publié
mercredi ses résultats du deuxième trimestre 2020, a souffert de
l'impact de la pandémie de COVID-19 et de la baisse des cours du
pétrole qui ont conduit à une perte opérationnelle de 32
millions de dollars sur la période.
    "Le marché des géosciences a poursuivi sa détérioration ce
trimestre, les clients redéfinissant leurs portefeuilles à la
suite d'une nouvelle révision en baisse de leurs dépenses E&P
(exploration et production)", note Sophie Zurquiyah, directrice
générale de CGG, dans un communiqué.
    L'entreprise française spécialisée dans l'exploration du
sous-sol et les géosciences affiche un chiffre d’affaires IFRS
de 239 millions de dollars contre 335 millions au deuxième
trimestre 2019.
    Le résultat opérationnel ressort à -32 millions de dollars
contre un bénéfice de 51 millions un an plus tôt tandis que la
perte nette a été creusée à 147 millions de dollars contre -98
millions l'an dernier. 
    Le chiffre d'affaires des activités se monte à 202 millions
de dollars, en baisse de 41% d’une année sur l’autre.
    L'EBITDAs des activités est à 68 millions de dollars, en
baisse de 60% sur un an, avec une marge de 34% contre 50% un an
plus tôt.
    "Nous mettons en place rapidement les mesures nécessaires
pour adapter notre structure de coûts à cet environnement, tout
en nous concentrant sur nos technologies différenciées et nos
investissements multi-clients clés", poursuit Sophie Zurquiyah,
qui se dit "convaincue que CGG est bien positionnée pour réussir
à traverser ces crises".
    Le groupe a dit disposer à fin juin de 546 millions de
dollars de liquidités et de 626 millions de dollars de dette
nette. 


Y trancripción

Sophie Zurquiyah-Rousset,  CGG - CEO & Director   [3]
--------------------------------------------------------------------------------
 Thank you, Christophe. Good morning, ladies and gentlemen, and thank you for participating in this Q2 2020 conference call. Our presentation will cover our second quarter 2020 operational and financial results, and I will start today's presentation by giving some background on the market.
 On Slide 4 now. So although crude oil prices have improved from the historic lows seen in May, the COVID-19 pandemic has continued to dramatically affect global economies and severely degrade our business environment. The energy sector is experiencing particularly strong headwinds. At CGG, we do not see [rapid] effects of the macro market. We see E&P company actions. In the past, this created a lag and smoothing effect, but this time, our clients reacted very quickly and deeply. In addition, during the previous downturn of 2015 and '16, our clients extracted large savings from their suppliers in what I will call easy efficiency gains. This time is different. The service sector is already lean, and our clients are more focused internally, reorganizing and reducing their staff. This has significantly slowed down activity on new projects and award of new work.
 Our markets continue to deteriorate in Q2 more than was originally anticipated just a few months ago, and the timing for global economic recovery remains uncertain. This being said, I am convinced that as new projects are further delayed, the chances of undersupply are increasing. Energy transition also received more focus, and our clients are increasing their spend towards renewable energies, especially in Europe. They are also focusing oil and gas CapEx on their core areas and producing the most advantaged hydrocarbons.
 Moving on to Slide 5. In this business environment, we are quickly adapting to reality and to our clients' new activity levels while preserving the future. CGG's strategic rationale is strong, especially in these challenging conditions, and is even reinforced in many ways. We are well positioned in 3 differentiated businesses that are increasingly working together to best serve our clients and develop unique solutions. We continue to invest in our key high-end Geoscience technologies in our multiclient library and a new best-in-class equipment. All are very important as we manage through the crisis and for the long term.
 To be the most efficient with their investments, our clients need the best subsurface images to position their wells and mitigate drilling risk. Our differentiated technologies provide significant value through our imaging services as well as through our multi-client data. In the last 2 years, we have made a conscious effort to increase our participation in development and production successfully and have avoided frontier areas that we believed were less robust. Most of the subsurface imaging projects that we deliver today are linked to development and production, and we continue to lead across all imaging domains, including node processing.
 Our multi-client library is positioned in proven, developed and mature sedimentary basins, and we continue to extend our footprint in these basins as well as reprocess our data to provide enhanced understanding to our clients. Our equipment business is benefiting from a unique reputation and the largest installed base. [Although] we continue to bring to the oil and gas market best-in-class equipment while expanding into non-oil and gas markets.
 A common theme has been digitalization. We have developed, in the last few years, compelling digital solutions, enabling clients to access and utilize their data seamlessly across the cloud and to transform and extract new insights from their data. This area maintains good momentum. We're also continuing to pursue efforts around diversification and are establishing new businesses to address growing demand around green energy and the transition to low carbon.
 Moving on to Slide 6. Throughout my career, the oil and gas industry has gone through many cycles, and this is the most intense I have seen. Given the magnitude of the revenue drop in just 3 months, the company is rapidly adjusting by reducing its CapEx and its cost structure. As already announced, 2020 CapEx was reduced to around EUR 300 million. We are looking at costs across the board and have started to reduce staff in various locations globally as well as reducing the number of contractors that we rely on in the equipment business when the market is stronger. We are doing this in phases as we need to deliver ongoing projects on one hand and manufacture equipment for Q4 on the other. Time will give us more clarity as visibility into 2021 currently remains low. We expect to reduce our cash cost by around EUR 35 million in 2020 and around EUR 135 million annualized, including around EUR 90 million of fixed cost cash costs. Preservation of our liquidity is a priority, and in particular, we're continuing to pursue the monetization of our remaining data acquisition assets.
 Going on to Slide 8 now. The current environment had a strong negative influence on our Q2 performance. Q2 revenue was EUR 202 million, down 41% year-on-year. Our teams managed through the crisis well, and we did not experience any operational delays related to COVID-19. Our business continued to overall remain excellent, and it's been quite impressive to see how resourceful and resilient our employees and subcontractors have been through these challenging times.
 GGR revenue was EUR 144 million, down 35%, and equipment was EUR 58 million, down 52%. As expected, GGR was less volatile than the equipment business. Our adjusted EBITDA before nonrecurring charges were EUR 76 million for a 37% margin. Adjusted operating income before EUR 49 million nonrecurring charges was negative EUR 5 million, not far from breakeven.
 The current COVID-19 pandemic and unprecedented decrease in oil price and E&P spending have led us to carry a full impairment test in Q2 2020 instead of full -- instead of year-end under normal course of operations and to launch the readjustment plan. A total of EUR 94 million nonrecurring charges were booked in Q2 2020, and Yuri will go over that in more detail. CGG consumed EUR 60 million of net cash, of which EUR 50 million of cash costs are exceptional and relate to our saving plans. This puts our liquidity at EUR 546 million and net debt before IFRS 16 at EUR 626 million.
 I'll now cover our Q2 2020 operation by reporting segment.
 To Slide 9 with GGR. GGR directly felt the reduction of our clients' E&P CapEx and, in addition, was impacted in the short term by a client's significant new organization, especially of their geophysical departments. Overall, GGR top line decreased 35% to EUR 144 million with adjusted EBITDA margin at 56%. Adjusted OPINC before nonrecurring charges was positive EUR 9 million.
 Slide 10 with Geoscience. Geoscience total production was EUR 113 million in Q2, down 12% year-on-year, as the Geoscience business delivered earlier-awarded projects. New commercial activity was particularly low in May and June, and backlog decreased to EUR 214 million at the end of June. Our imaging technology continued to advance rapidly, supported by our exceptional people and industry-leading, high-performance computing capability of 268 petaflops.
 On Slide 11. Looking at our Geoscience operational highlights, let me first start by saying that Geoscience has continued to deliver quality work on time with the latest technology despite the majority of its employees working from home. Q2 activity benefited from the momentum of 2019 and of early Q1. Q2 total production was down 12% year-on-year and 10% sequentially. Preservation of business continuity and profitability has been the focus throughout the quarter. We know that our clients will spend less this year and postpone some of their clients. They will keep working on their most important projects to high-grade their portfolios. The key geographical areas of interest include the Gulf of Mexico, Brazil, North Sea, U.K. and Norway, where CGG is well established, understands the subsurface and has an excellent track record of delivering the best images.
 You see on this slide a striking example of the kind of high definition that we can now achieve. This unmatched level of detail enables our clients to better understand the reservoirs and oil in place, which is critical to implementing optimized recovery methods. On recent proprietary projects, in one of the images, you could clearly see the well trajectory and even the subsea platform made and support structures. The phase of innovation and advance continues to accelerate, and this much higher resolution and quality can significantly improve our clients' ability to successfully achieve their goals.
 On Slide 12 now with multiclient. Q2 multiclient numbers were supported by ongoing well prefunded programs in proven and mature basins. After sales were very low as clients [ranked in anything] the pending reorganization, reprioritization and rebudgeted. After sales are the indicator of our clients' mindset. They are the first to reduce in difficult time but also the first to pick back up when prospective improve. I would also point out that we maintain a strict discipline on pricing and have around EUR 14 million of deals that have shifted to Q3 because of this price discipline. And since the end of June, these deals have been signed.
 Prefunding revenue was EUR 46 million, slightly down from last year, as we remain quite active this quarter with multiple client CapEx increasing to EUR 73 million with a 63% prefunding rate.
 Slide 13. We had 4 multiclient projects in acquisition during the quarter. Despite COVID-19, all of our operations globally progressed without interruption, and prefunding remains strong. This included 1 land survey, Central Basin Platform in the U.S., and 3 programs in Marine. Nebula in Brazil, our 15,000-square-kilometer program in the Santos Basin, which attracted high level of client interest. 2/3 of the program was acquired at the end of June. We have received permit extensions that will allow us to continue acquisition in this successful area in 2021. Gippsland in Australia. This 8,700-square-kilometer program in the Gippsland mature producing basin is now completed. And the third program is an ocean bottom node survey in the Cornerstone area of the U.K. North Sea. In addition, we also commenced this quarter the reprocessing of our multiclient stack site Marine survey in (inaudible). The first phase of this reimaging project is bringing a new light to the data and raising significant client interest. We may conduct additional phases based on industry interest and funding. During these challenging times, reprocessing opportunities can extract significant uplift from the data and bring to market cost-effective alternatives to a new acquisition. Looking at the rest of the year, we expect 2020 multiclient cash CapEx of around EUR 225 million with a solid prefunding rate of more than 75%.
 Moving on to Slide 14 now with equipment. Equipment revenue was down 52% year-on-year at EUR 58 million. The percentage drop is accentuated by the fact that last year was front-loaded with mega-crews. Nevertheless, activity has fallen significantly and is now largely driven by land opportunity. Marine equipment represented only 17% of total sales and was mainly the sales of spare parts. Equipment adjusted EBITDA was at breakeven, which shows our strong ability to adapt our structure to meet market conditions.
 During the quarter -- on Slide 15. During the quarter, equipment delivered over 60,000 hybrid prospect land data acquisition channels and 10 big [Nomad] 90 vibrators, mainly in North Africa and Asia. Equipment also delivered its first WiNG node NAND system. At this time, the tended mega-crews in the Middle East are still pending award, and the most likely scenario is that 2 should be awarded before year-end to geophysical contractors who will then purchase equipment.
 Demand for Marine equipment, both streamers and nodes, is expected to remain low in 2020 as geophysical contractors stack more vessels and continue to try and reuse old streamers. In our non-oil and gas segment, the first pilot test for Sercel's new structural health monitoring node prototype, designed for the growing high-end infrastructure monitoring market, was performed in France with promising results. Equipment also acquired a stake in a French start-up specialized in autonomous robots.
 I'm on Slide 16 now. CGG is continuously recognized as a leading service company from an environmental, sustainability and governance standpoint. External rating agencies rank companies over a list of criteria, and we achieved an excellent AA rating with MSCI and 55 rating at [Video Areas]. The average company score is 30. MSCI and Video Areas are the 2 leading ESG rating agencies.
 One important ESG KPI is our carbon footprint. After our exit from acquisition, our scope 1, which is direct emissions, has reduced to virtually 0. Based on this, our focus is now on scope 2 and scope 3. Scope 2 is mainly the electricity that we use in our data centers but also in our manufacturing facilities, and we continue to enhance the efficiency and percentage of green energy. As of H1 this year, 23% of our power comes from renewable energy.
 On Slide 8 -- 17. While we have many more ESG initiatives that I could show on this slide and technologies, I thought it would be timely to show you some of our technology and business initiatives in this area. Not only are we focused on improving our own environmental footprint and sustainability, but also our core Geoscience expertise and technology is valuable to our clients in their ESG efforts. And it is clear that the current crisis is accelerating many of our clients' easy and renewable energy strategies. We're leveraging our expertise and technology to support our clients' efforts in this area. And while the revenue associated with this emerging business is marginal to our overall performance today, it is a promising area of focus for our future.
 When it comes to environmental footprint, one of the key technologies is carbon capture and monitoring. Going forward, many of our clients will be more and more integrating carbon capture and monitoring systems into their developments. This requires a detailed understanding of the subsurface, which is precisely our area of expertise.
 A satellite marketing machine learning technology helps our clients monitor offshore position. We have a contract with 1 client today to monitor all their platforms globally. We have also expanded our client base and now have mining companies using our technology to monitor the structural integrity of their operations. A satellite marketing and Sercel technology can be applied to a wide range of challenges that the world faces today, including structural integrity monitoring for infrastructures and earthworks as well as monitoring for geo hazards, subsidence and the environment. With our Sercel QuietSea equipment, we provide passive acoustic monitoring to detect marine (inaudible) presence with an unequaled degree of precision. I will continue to update you on the successful developments of these new business initiatives as they continue to progress.
 And I will now give the floor to Yuri for more financial highlights.
--------------------------------------------------------------------------------
 Yuri Baidoukov,  CGG - Senior EVP & Group CFO   [4]
--------------------------------------------------------------------------------
 Thank you, Sophie. Good morning, ladies and gentlemen.
 To help navigate our Q2 and H1 results, we have added supplementary information on Slide 19. The global economic crisis triggered by the COVID-19 pandemic, an unprecedented drop in oil price and E&P spend of our customers have led CGG to carry a full impairment test in Q2 2020 and launch cost-reduction actions designated as COVID-19 plan. As a result, we booked this quarter EUR 94 million of nonrecurring charges, and I would like to provide you more details on where they landed in our consolidated income statement.
 At the EBITDA level, we had EUR 7 million of severance costs related to the COVID-19 plan, including EUR 6 million in GGR and EUR 1 million in equipment. Below EBITDA, at the OPINC level, we also booked EUR 17 million noncash charges, mainly related to the fair value remeasurement of GeoSoftware business available for sale and EUR 24 million noncash goodwill impairment related to GeoConsulting business, which is mainly focused on exploration and appraisal. Below OPINC level, we additionally had EUR 37 million noncash charges related to fair value remeasurement of other financial assets and liabilities, OFA, mainly related to exit from Marine acquisition business transaction and EUR 9 million noncash impairment of deferred tax assets. It is important to mention that our goodwill remains largely intact and has been reduced by a limited amount of EUR 24 million related to GeoConsulting business. A total of EUR 166 million of nonrecurring charges related to the economic prices triggered by COVID-19 pandemic and our industry downturn was booked over the first half of the year.
 Looking at the consolidated income statement for the second quarter of 2020 on Slide 20. Segment revenue from our new profile amounted to EUR 202 million, down 41% year-on-year. GGR contribution was EUR 144 million, a 35% decrease year-on-year with 71% weight. Geoscience external revenue was EUR 83 million, 11% lower year-on-year, and multi-client sales were at EUR 62 million, decreasing 52% year-on-year, mainly due to significant drop in after sales. Equipment revenue contribution was EUR 58 million, down 53% year-on-year with 29% weight. Segment EBITDA was EUR 68 million, including EUR 7 million of COVID-19-related cash costs at 34% margin.
 Segment operating income was negative at EUR 53 million, including EUR 48 million of nonrecurring charges. IFRS 15 adjustment at operating income level was positive EUR 21 million, and IFRS operating income after IFRS 15 adjustment was negative EUR 32 million. Our cost of financial debt was EUR 33 million with a noncash peak component of EUR 11 million, flat year-on-year. Other financial income, OFI, had a loss of EUR 36 million, including $37 million noncash charges related to fair value remeasurement of other financial assets and liabilities. Income taxes were EUR 33 million, including EUR 9 million related to the noncash deferred tax assets impairments. Net loss from continuing operations was EUR 134 million. Net loss from discontinued operations was EUR 13 million. Group net loss was EUR 147 million. Adjusted net loss from continuing operations, excluding a total of EUR 94 million of nonrecurring charges described previously, was EUR 40 million.
 Moving to Slide 21 and looking at our cash flow statement. In the second quarter of this year, segment operating cash flow was EUR 81 million, a decrease of 35% year-on-year despite a 55% reduction in adjusted segment EBITDA. Our multi-client cash CapEx of EUR 73 million was 30% higher than last year, driven by solid portfolio from growing well prefunded projects. In the second quarter, cash prefunding rate was 63%. Industrial cash CapEx and R&D costs in our Geoscience and equipment businesses were flat year-on-year at EUR 16 million. Segment free cash flow was slightly negative at negative EUR 8 million. Cash cost of debt was flat year-on-year at EUR 32 million, and lease repayments were at EUR 15 million. Net cash flow from discontinued operations was 0 this quarter compared to a negative EUR 20 million in the second quarter of 2019. And overall, our nonrecurring cash costs amounted to EUR 25 million this quarter, and our net cash flow was negative at EUR 77 million compared to negative EUR 31 million in the second quarter of 2019. For the first half of 2020, our net cash flow was negative EUR 60 million, including EUR 54 million of cash costs related to exit from acquisition business and COVID-19-related plan.
 Moving to Slide 22 and looking at our group balance sheet and capital structure. As a result of the negative net cash flow, our liquidity decreased to EUR 546 million at the end of June 2020. At the end of June 2020, our gross debt was at EUR 1.329 billion or EUR 1.172 billion before IFRS 16 with the following breakdown: EUR 614 million of first-lien U.S. dollar and euro bonds due in April of 2023; EUR 543 million of second-lien dollar and euro bonds due in February 2024; EUR 159 million of lease liabilities, including EUR 41 million of Galileo financial lease and EUR 116 million of operating leases under IFRS 16; and EUR 13 million of other items, mainly accrued interest.
 Looking at our financial leverage ratios at the end of June 2020. Net debt-to-shareholder equity ratio was at 60%, and segment leverage before IFRS 16 was at 1.1x net debt to last 12 months EBITDA. At the end of June 2020, our capital employed was at EUR 2.1 billion, down from EUR 2.3 billion at the end of 2019. Net working capital after IFRS 16 was flattish at EUR 153 million. Goodwill was at EUR 1.18 billion corresponding to 55% of total capital employed. Our multi-client library net book value after IFRS 16 was at EUR 480 million. Other assets were EUR 480 million, including: EUR 277 million of property, plant and equipment, down from EUR 300 million at year-end, including EUR 159 million of IFRS 16 right-of-use assets, of which EUR 41 million related to Galileo financial lease; EUR 159 million of other intangible assets, stable versus year-end; and EUR 44 million of other noncurrent assets, up EUR 14 million from year-end, mostly from shareholder note of EUR 23 million. Other noncurrent liabilities were at EUR 157 million, including EUR 101 million of noncurrent portion of liabilities related to capacity agreement with shareholder, including EUR 49 million related to off-market component and EUR 52 million to idle vessel compensation. Shareholders' equity was at EUR 1.35 billion, including EUR 39 million of minority interest mainly related to our joint venture, Yung Feng, in China. In those turbulent and uncertain times of global economic crisis triggered by COVID-19 pandemic, which is further exacerbated by severe downturn in our industry, reservation of cash becomes more imperative than ever. This is why we continue to stay focused on generating cash, significantly reducing our cash costs and preserving our liquidity.
 Now I hand the floor back to Sophie for an update on our business outlook and conclusions.
--------------------------------------------------------------------------------
 Sophie Zurquiyah-Rousset,  CGG - CEO & Director   [5]
--------------------------------------------------------------------------------
 Thank you, Yuri.
 In conclusion, in 2019, we successfully -- this is Slide 23. We successfully transformed the company into an asset like people, data and technology companies, well ahead of schedule, and managed to reinforce our leadership positions across all core business lines.
 Looking forward into the second half of 2020, it is clear that the business environment will be very difficult. However, when I put this into perspective, we are in a much stronger position that we still have [5] vessels, and I'm confident that our current strategy and our teams are optimal for managing CGG through this crisis.
 Outside of exceptional costs, we have managed to control cash spend despite the 41% revenue drop. This was achieved through strong cost control across all business lines. We also continue to see interest from our clients around the enhanced insights that we can provide to them in their co-basin through our leading technology and data. Our technology remains fundamental to our clients' success as we play a significant part in the efficiency and effectiveness of their business.
 I'm confident that our value proposition remains intact, and that we will succeed in preserving our capabilities to capture future growth. While our visibility remains limited, our H2 top line will depend heavily on the continued evolution of the COVID-19 pandemic, oil price and our clients' reaction to the changing landscape. At current, our clients are adapting their organization and entering into the budgeting cycle for 2021. Assuming stable market conditions with the pandemic under control and at oil price above EUR 40, we should see more stability, which could be conducive to an uptick in multiclient sales in Q4. Equipment performance will depend heavily on the mega-crews.
 The entire CGG leadership team and company is determined to deal with the current challenging conditions and to make the best of this crisis to further reinforce the company as well as plant the seed for future growth. Thank you for your interest, and we're now ready to take your questions.
--------------------------------------------------------------------------------
 Christophe Barnini,  CGG - Head of Group Communications & IR   [6]
--------------------------------------------------------------------------------
 Enough, operator.
================================================================================
Questions and Answers
--------------------------------------------------------------------------------
Operator   [1]
--------------------------------------------------------------------------------
 (Operator Instructions) And your first question comes from the line of Jean-Luc Romain from the CIC Market Solutions.
--------------------------------------------------------------------------------
 Jean-Luc Romain,  CIC Market Solutions (ESN), Research Division - Analyst   [2]
--------------------------------------------------------------------------------
 My question is related to the non-oil and gas applications of -- about your services and equipment businesses. How big you see the geothermal sciences and carbon capture monitoring markets in, say, 5 to 10 years? That's for the services. And for equipment, you mentioned successful tests in the first half of your infrastructure proposition. When -- do you see some turnover already in H2? Or should we expect it more in 2021?
--------------------------------------------------------------------------------
 Sophie Zurquiyah-Rousset,  CGG - CEO & Director   [3]
--------------------------------------------------------------------------------
 Okay. Thank you, Jean-Luc, for your question. I'll take that. So basically, your questions are around efforts into non-oil and gas areas or kind of around it, like the carbon capture and the geothermal. So the market size, I mean it is a growing market. As you see the -- definitely with the energy transition, the carbon capture is the most sort of effective and obvious technology that would allow us to reduce our carbon emissions. So therefore, it's been growing very significantly. So I think for us, we -- right now, our participation, at least for a start, will be more around the understanding of the subsurface. And I don't see any reason why, at some horizon, this can be almost equally the size of what we're doing right now in the processing and the Geoscience organization. It's hard for me to say when and how fast this will go there, but it might become a significant portion of what we do.
 On the equipment side, it is early stages. We're more at the stages of testing the prototypes. And there, I don't think there will be revenue this year. But yes, probably starting 2021, we'll just sort of start seeing some revenues from it, especially as the result of the tests are encouraging.
--------------------------------------------------------------------------------
Operator   [4]
--------------------------------------------------------------------------------
 And your next question comes from the line of Christopher Møllerløkken.
--------------------------------------------------------------------------------
 Christopher Møllerløkken,  Carnegie Investment Bank AB, Research Division - Research Analyst   [5]
--------------------------------------------------------------------------------
 Yes. This is Christopher Møllerløkken in Carnegie. I noticed that your partner, Magseis Fairfield, announced a new prefund around the Cornerstone project this morning. Does that mean that it would be fair to assume prefunding percentage to increase for CGG in third quarter versus second quarter?
--------------------------------------------------------------------------------
 Sophie Zurquiyah-Rousset,  CGG - CEO & Director   [6]
--------------------------------------------------------------------------------
 Christopher, thank you for the question. I mean I would say this is just normal course of action, and that's why you haven't seen the sort of the equal announcement from our side. I think we were committing to that 75% prefunding minimum, and we're still on it. So I think nothing so special as we transition over the course of action as we do our project, we continue to bring prefunding to them.
--------------------------------------------------------------------------------
 Christopher Møllerløkken,  Carnegie Investment Bank AB, Research Division - Research Analyst   [7]
--------------------------------------------------------------------------------
 You expected 2 of the mega-crews in the Middle East to be awarded seismic companies by the end of this year. But did I understand correctly that you also assumed then that it could impact yourself already in 2020? Or is this more a 2021 event?
--------------------------------------------------------------------------------
 Sophie Zurquiyah-Rousset,  CGG - CEO & Director   [8]
--------------------------------------------------------------------------------
 I mean we're trying to figure that out, right? So the current view is that right now, there are 3 3D mega-crews [tended] and 1 2D. What we understand is 1 3D and 1 2D are shifted into next year to be awarded, so definitely, that's not 2020. And 2 3D mega-crews will be awarded this year. So right now, there are 2 mega-crews in operations that are going to be finishing work in September. So we would expect that the country will want some level of continuity, not exactly starting October, but in not too long afterwards. So if those crews are awarded, I'd say, early enough in the fourth quarter, I would expect those sales for the equipment provided to happen in Q4. And we're getting ready for it because, obviously, we can't manufacture equipment in the short turnaround, so we're having to anticipate that.
 So we're still, right now, anticipating that we might have sales in Q4. But it depends when those are actually awarded, but the current plan is for that to happen sometime in Q4.
--------------------------------------------------------------------------------
Operator   [9]
--------------------------------------------------------------------------------
 Guillaume Delaby.
--------------------------------------------------------------------------------
 Guillaume Delaby,  Societe Generale Cross Asset Research - Equity Analyst   [10]
--------------------------------------------------------------------------------
 Yes. Maybe I took the call 15 minutes late, so maybe you spoke about it. My question basically is on Geoscience because I find your sales performance in Q2 disappointing, especially when you read what you have said during the Q1 call. So my question is very straightforward. So what happened exactly in Geoscience in Q2? Was there some bad news? Were you're a little bit too optimistic or too confident in Q1?
 And my second question, of course, is what is the outlook for Geoscience in H2.
--------------------------------------------------------------------------------
 Sophie Zurquiyah-Rousset,  CGG - CEO & Director   [11]
--------------------------------------------------------------------------------
 I'm not sure what I said that might -- that made you believe that Geoscience was on a more optimistic view. I think what I said on the outlook for Geoscience is that the business would gradually reduce, and it's actually exactly what's happening. So we're seeing an 8% reduction from last year, which is much better than what we're seeing in multiclient or equipment. So we're sort of confirming that Geoscience is actually indeed a bit more resilient because of the backlog. So nothing really happened in Geoscience during the quarter. We still maintain that view that the decrease in Geoscience will be gradual. But because of that backlog, it gets hit by the downturn with a delay. So we do expect actually that Geoscience will suffer more into 2021 as the backlog, so the order intake sort of reduces into the following quarters. But we continue to deliver our projects. We have leading technologies. So the value proposition of Geoscience remains there. I'm actually quite happy with the performance of Geoscience in the second quarter. So I'm not too sure. Perhaps you can expand on why you think the performance is disappointing.
--------------------------------------------------------------------------------
 Guillaume Delaby,  Societe Generale Cross Asset Research - Equity Analyst   [12]
--------------------------------------------------------------------------------
 No. Basically, I think, and this ping pong play between you and I is very interesting because in my mind gradually was probably more gradual than in your mind. What I just would like to say, you give some granularity of some qualitative elements regarding Geoscience for 2021. What are the 2 or 3 main drivers for Geoscience looking into 2021?
--------------------------------------------------------------------------------
 Sophie Zurquiyah-Rousset,  CGG - CEO & Director   [13]
--------------------------------------------------------------------------------
 Okay. Yes. So as I said, the one element that we look at on a very detailed basis is the backlog and the order intake. And as I mentioned, in May, April, May and June, slow, and that's the result of our clients reorganizing their different departments. And so in general, the budget cuts have been approved, if you want, at the top level, but they haven't necessarily percolated by -- on a project-to-project basis. And on top of it, the organizations are moving, which is, of course, not very conducive for work to be awarded. So order intake is going to be critical. And I think, of course, we need to understand how much data is being acquired because that drives processing projects. We need to look at the reprocessing because the -- and usually, it does pick up to some extent when there's less data acquired because the trade-off is being made and especially as technology improves so rapidly that more trade-offs are being made towards reprocessing. So I would expect that eventually reprocessing picks up.
 Of course, multi-client is an important element for our processing organization and our ability to reprocess our projects and bring enhanced value to our clients. So we're looking at what makes sense to report within our data library that can would be willing to fund, for example. So there's a lot of elements into that. But we'll feel more of the effect of the gradual -- again, perhaps we have a different definition of gradual, the gradual decrease later this year and into early next year.
--------------------------------------------------------------------------------
Operator   [14]
--------------------------------------------------------------------------------
 And your next question comes from the line of Sahar Islam from Goldman Sachs.
--------------------------------------------------------------------------------
 Sahar Islam,  Goldman Sachs Group, Inc., Research Division - Analyst   [15]
--------------------------------------------------------------------------------
 One was a broader one for you, Sophie, please. We've talked a bit about how the seismic business overall is shifting more towards brownfield as that's where customer CapEx is going. How do we think about what proportion of multi-client and Geoscience is now brownfield versus greenfield?
 And then secondly, one for Yuri. Do you mind just giving us a quick overview of the big moving parts for net cash flow for 2020? I know it's slightly impossible in this market, but where you expect to end up in the current market conditions for net cash flow for this year, please.
--------------------------------------------------------------------------------
 Sophie Zurquiyah-Rousset,  CGG - CEO & Director   [16]
--------------------------------------------------------------------------------
 Yes. It's definitely, as I mentioned, the clients ' priorities are becoming more and more into the production optimization, development and less so on pure exploration. That said, because that exploration is more and more into the step-outs around the existing infrastructure, we're seeing an increasing number of projects combining both. So in terms of our numbers, it becomes a bit difficult to start splitting the -- what is exactly a production enhancement and what is step-out exploration because it's just we could recover a larger area and need both at the same time. But generally speaking, I guess, in the past, where public CGG was 60% more in exploration appraisal and 40% development and production, less so even production, now it's probably shifted the other way around. You probably have 30% to 40% exploration and 60% to 70% brownfield. Now for example, places like Brazil, I wouldn't call them brownfield, where I could then discovered basins. They're in appraisal/development phase. And so all our Brazil will perform into that category. But there is very little that we do anymore. It's marginal in like that frontier exploration. It's just -- we're going where the budgets are going, and it's quite natural. If you look at the multi-client, the Australian project that we did, for example, is just -- it's purely a mature basin. And that's -- I mentioned that during the call, this has been a conscious decision to go to those areas because we know those are more resilient than those [20] areas. So we had -- we've seen very little -- we've reduced our exposure substantially to those 20 areas. And therefore, we're going to be substring less perhaps than other players in the market.
--------------------------------------------------------------------------------
 Sahar Islam,  Goldman Sachs Group, Inc., Research Division - Analyst   [17]
--------------------------------------------------------------------------------
 That's helpful color.
--------------------------------------------------------------------------------
 Yuri Baidoukov,  CGG - Senior EVP & Group CFO   [18]
--------------------------------------------------------------------------------
 Sahar, answering your second question, I can only tell you what we control, I would say, in the current difficult market environment. And if I go -- or if I look at cash provided by preoperations, I'm not going to talk about change in working capital because naturally can fluctuate. One line which will be smaller than last year is income taxes paid. So in other words, cash income taxes will be in the range of EUR 10 million, EUR 15 million maximum. Of course, you know our CapEx, which is EUR 300 million. So we reduced it significantly from the previous guidance, but it will be higher year-on-year because of the multi-client program of projects that we talked about.
 Then when we look at discontinued operations, there is this element which you're well aware of, and this is the cash cost related to exit from acquisition, which we still expect to be in the range of about $80 million. The -- what we call now or what we designated as COVID-19 plan cash costs this year, we anticipate to be around EUR 30 million. And again, this cost mainly related to severance related to the reduction in headcount that we already started. And then last but not least, our -- the cost of debt will be in the range of EUR 85 million, and lease repayments will be flat at about EUR 55 million. So basically, these are the key elements, again, that we control and manage.
--------------------------------------------------------------------------------
Operator   [19]
--------------------------------------------------------------------------------
 And your next question comes from the line of [Julian Tori] from [Faria].
--------------------------------------------------------------------------------
 Unidentified Analyst,    [20]
--------------------------------------------------------------------------------
 Could you please -- you mentioned that you don't want to talk about the working capital trends, which I kind of understand. But I just wanted to -- basically, if you could explain a bit more what happened with your working capital in Q1 and Q2 and what do you expect for second half based on scenarios of either, let's say, better-than-expected recovery or where's an expected lump.
--------------------------------------------------------------------------------
 Yuri Baidoukov,  CGG - Senior EVP & Group CFO   [21]
--------------------------------------------------------------------------------
 Yes. So as you saw in Q1, we had positive change in working capital and actually in H1 as well, which is kind of natural because basically, we've been collecting revenues that were generated in the fourth quarter and -- of last year and the first quarter of this year. Now the working capital story will depend ultimately on the fourth quarter of this year. As Sophie was explaining, if the -- if the mega-crews are awarded in (inaudible), and we do get an order for equipment, so then sales and inventory will go up in equipment business. And equally, like always, we anticipate that after sales will still be highest in the fourth quarter of the year, but of course, it will depend largely on the outlook of our customers for 2021 and where the oil price will be towards the end of the fourth quarter. So if we will have so-called Christmas sales as usual in the fourth quarter, then receivables in multi-client will (inaudible). So that's, broadly speaking, the possibilities. Now if those elements will not happen, then it will be a different story for working capital as well.
--------------------------------------------------------------------------------
 Unidentified Analyst,    [22]
--------------------------------------------------------------------------------
 Okay. Second question that I have is just to clarify, you do not have any EUR 20 million -- do you expect the EUR 20 million cash outflow from discontinued operations this quarter? But you confirmed the EUR 80 million for the year. Is it just that you postponed it for the other parts?
--------------------------------------------------------------------------------
 Yuri Baidoukov,  CGG - Senior EVP & Group CFO   [23]
--------------------------------------------------------------------------------
 No. Actually, our cash costs related to acquisitions were overall EUR 50 million in H1 out of Asia. The EUR 20 million was actually relating to -- I think it was -- yes. So basically, yes, we spent EUR 50 million of CGG 2021 or cash costs related to acquisitions in the first half, and we expect another EUR 30 million in the second half of the year.
--------------------------------------------------------------------------------
 Unidentified Analyst,    [24]
--------------------------------------------------------------------------------
 Okay, fair enough. Another question I'll have is there has been some pickup in the U.S. onshore, but it's mostly, let's say, developed but uncompleted wells. What are you seeing -- did you see any change in trends since the oil price bottomed and since being more or less stabilized around for the area? Or aren't you waiting to see how your customers are going to react to these developments?
--------------------------------------------------------------------------------
 Sophie Zurquiyah-Rousset,  CGG - CEO & Director   [25]
--------------------------------------------------------------------------------
 Yes. I'll take that question. Thank you. It pertains to the U.S. onshore where we have very little exposure in a way. So the main exposure that we have is through our multi-client acquisition, multi-client data library and a little bit of equipment that we sell to the U.S. We're not really seeing any changes resulting from the small uptick that we saw in -- as of recent. We are quite busy making 2 acquisitions early in the year when this downturn happened, and we had prefunding and clients committed, and that's been maintained. So we've delivered those projects. But I don't anticipate actually making new multi-client investments in North America and (inaudible) soon. Now are we going to sell the data? Yes, there are still conversations with clients, I would say, on a normal course basis but probably lower than would normally be in better conditions. And certainly, I haven't seen an update just as of recent. What we're watching is the transfer fees, right, that companies might be changing hands and M&A happily. There could be opportunity for us to charge for those transfer fees.
--------------------------------------------------------------------------------
Operator   [26]
--------------------------------------------------------------------------------
 (Operator Instructions) There are no further questions at this time. Please continue.
--------------------------------------------------------------------------------
 Sophie Zurquiyah-Rousset,  CGG - CEO & Director   [27]
--------------------------------------------------------------------------------
 Yes. I think, yes, we could -- we've covered about the subjects. So thank you very much for attending this quarterly call and look forward to interacting with you in for the meeting. Thank you very much again, and have a good day.
--------------------------------------------------------------------------------
Operator   [28]
--------------------------------------------------------------------------------
 Thank you. That does conclude our conference for today. Thank you all for participating. You may now disconnect.





«Después de nada, o después de todo/ supe que todo no era más que nada.»

#483

Re: El rincon de tutamen.

Dentro con 10000 a 0,82
En principio de aquí no debe bajar. 
#484

Re: El rincon de tutamen.

por que os gusta tanto este valor?

se dedica a servicios adicionales de petroleo busqueda y geolicalizacion?
le veis futuro a corto en este sector?
o me pierdo algo?

#485

Re: El rincon de tutamen.

Los resultados eran de esperar que fueran malos.
Este sector va ir recuperando poco a poco gran parte de lo perdido debido al ajuste de la oferta, y ahora es el momento de posicionarse en estas acciones que están en el mínimo. 
#486

Re: El rincon de tutamen.

CGG

He puesto orden a 0.80.

A ver si entra.
#488

Re: El rincon de tutamen.

Entró. Media 0.87

CGG
#489

Re: El rincon de tutamen.

Si CGG era buena apuesta a 1 €... mejor lo será a 0.8.

Repsol aún podría caer algo más hasta llegar a mínimos... (ojalá no, claro!)

#490

Re: El rincon de tutamen.

Ahora mismo es el peor sector con diferencia, y no termino de entender porque no reacciona a la subida del petroleo. Estamos descontando más quiebras? Ni idea, pero la salida de la crisis se hará con petroleo que es la energía más barata.
#491

Re: El rincon de tutamen.

Off-topic

Tengo la sospecha de que el petróleo subirá cuando caiga (de maduro) el régimen de Venezuela...
#492

Re: El rincon de tutamen.

Cgg

Lo vuelvo a intentar por última vez con esta acción. 58.205 CFD a 0,7777 de media

Dicen q el 7 trae buena suerte, no? Pues eso...




#493

Re: El rincon de tutamen.

Cgg

La otra vez que tocó el mínimo  de 0,76 al principio del Covid, superó el 1,10 en 48 horas!!!

Si se repitiera no me quejaría 
#494

Re: El rincon de tutamen.

Esta vez creo que va ser la buena.
Por cierto, tengo 3000 acciones de Repsol compradas a 8 y quiero comprar otras 3000.
A que precio pondríais la compra? 
#495

Re: El rincon de tutamen.

No te puedo ayudar porque no la sigo