Strong Financial Improvements in 2023:
Revenue at $1,125m, up 21%
Organic cash generation of $32m*
Positive net cash generation in 2024 and around $100m in 2025
to support the deleveraging roadmap
PARIS, France – March 6, 2024 – CGG (ISIN: FR0013181864), a global technology and high-performance computing leader announced today its fourth quarter and full year 2023 audited results.
Commenting on these results, Sophie Zurquiyah, CGG CEO, said:
“In 2023, CGG significantly strengthened its financial performance, and I am pleased to see that we returned to positive organic cash flow generation, while continuing to invest in our New Businesses.
CGG today not only remains the clear leader in its core businesses, it also addresses the Energy Transition as well as the new technology-enabled markets of High-Performance Computing and Infrastructure Monitoring.
After a good start in early 2024, we will continue to develop the company with a focus on further strengthening our core businesses, accelerating the growth of our New Businesses, and delivering our financial roadmap that prioritizes cash generation and balance sheet deleveraging.”
* including $(66)m fees from contractual vessel commitments
Q4 2023: A strong cash generation of $48m
IFRS figures: revenue at $265m, EBITDAs at $68m, OPINC at $(11)m.
Segment revenue at $320m, flat year-on-year. Geoscience at $98m, up 41% year-on-year.Earth Data at $103m, down (29)% year-on-year. Prefunding revenue at $62m, down (8)% year-on-year. After sales at $41m, down (47)% year-on-year.Sensing & Monitoring at $119m, up 14% year-on-year. Segment EBITDAs at $122m, a 38% margin, including $(13)m fees from contractual vessel commitments and $(8)m old equipment inventory write-off. Segment operating income at $15m, a 5% margin. Group net income at $(15)m. Net cash-flow at $48m, including $(18)m fees from contractual vessel commitments.
Full year 2023: Strong financial improvement
IFRS figures: revenue at $1,076m, EBITDAs at $351m, OPINC at $119m.
Segment revenue at $1,125m, up 21% year-on-year.Segment EBITDAs at $400m, a 36% margin due to business mix as well as $(44)m fees from contractual vessel commitments and a $(8)m SMO inventory write-off.Segment operating income at $138m, a 12% margin due to business mix. Group net income at $16m.Net cash flow at $32m, including $(66)m fees from contractual vessel commitments. Balance Sheet at the end of December 2023
Liquidity of $417m, including cash liquidity of $327m and $90m of undrawn RCF. Net debt before IFRS 16 at $871m at the end of December 2023. Segment leverage ratio (Net debt IFRS 16 to adjusted* segment EBITDAs) was 2.4x at the end of December 2023.
2024-2026 Market Trends: Mid-single digit growth of our core market and accelerated growth of our New Businesses
CGG anticipates market demand for its core businesses to continue to grow at yearly mid-single digit through 2026 sustained by offshore international activity and the middle east, selected exploration in key basins, and eventually an increasing need for technologies and subsurface understanding. Building on its key technology and proven expertise, CGG is strongly positioned to address the critical needs of new markets in low carbon (CCUS and Minerals and Mining), High Performance Computing (HPC) and Structural Health Monitoring (SHM). These three businesses are expected to develop rapidly at a CAGR above 30% during the period 2024 – 2026.
CGG 2024–2025 financial roadmap: deleveraging the balance sheet:
CGG anticipates net cash generation to accelerate and represent around $100 million in 2025, based on the end of our vessel commitment and continued operational improvement, notably in SMO as well as growth of our core and New Businesses fueled by selective increase in organic investment.
Based on this solid cash generation over the period 2024-2025 and with a reduced $100 million cash need to run its operations, CGG has a clear 2024-2025 financial trajectory, starting with the extension of the RCF in 2024, a re-rating discussion with the Rating Agencies and with eventually about $300 million of cash available for a gross debt buyback program and/or reduced refinancing before Q1 2026.
To ignite its financial 2024-2025 roadmap, CGG announces its intention to repurchase a first tranche of $30 million debt in 2024.
Full Year 2024 financial objectives1
In 2024, segment revenue is expected to be aligned with 2023: Geoscience: continued growth driven by technology and demand for low carbon. Earth Data: increase driven by transfer fees and favorable impact of delayed 2023 licensing rounds.Sensing & Monitoring: to be down due to lower numbers of mega-projects. New Businesses expected to grow by more than 30% 2024 segment EBITDAs is expected to be positively impacted by business mix. 2024 EDA cash Capex is expected to be around $175 -$200m with prefunding above 75%.CGG is anticipating 2024 positive net cash flow2 to reach a similar level as 2023, considering that it is the last year of the negative impact of the vessel contractual commitment with Shearwater. 1 based on a 1.1 €/$ exchange rate
2 excl any debt buyback
Key Figures – Fourth Quarter 2023
Key Figures IFRS
In million $ 2022
Q4 2023
Q4 Variances % Operating revenues 268 265 (1)% Operating Income 84 (11) – Equity from Investment (18) (3) 86% Net cost of financial debt (24) (20) (17)% Other financial income (loss) (2) (2) – Income taxes 9 11 13% Net Income / Loss from continuing operations 49 (25) (151)% Net Income / Loss from discontinued operations (2) 10 576% Group net income / (loss) 47 (15) (132)% Operating Cash Flow 103 152 47% Net Cash Flow 62 48 (23)% Net debt 951 974 2% Net debt before lease liabilities 858 871 1% Capital employed 2,010 2,038 1%
Key Figures – End of December 2023
Key Figures IFRS
In million $ 2022
Full year 2023
Full year Variances % Operating revenues 927 1,076 16% Operating Income 182 119 (34)% Equity from Investment (19) (2) 89% Net cost of financial debt (99) (95) 3% Other financial income (loss) 0 (4) – Income taxes (17) (14) 19% Net Income / Loss from continuing operations 48 4 (92)% Net Income / Loss from discontinued operations (5) 12 – Group net income / (loss) 43 16 (63)% Operating Cash Flow 346 408 18% Net Cash Flow (3) 32 – Net debt 951 974 2% Net debt before lease liabilities 858 871 1% Capital employed 2,010 2,038 1%
Key Segment Figures – Fourth Quarter 2023
Key Segment Figures
In million $ 2022
Q4 2023
Q4 Variances % Segment revenue 319 320 0% Segment EBITDAs 193 122 (37)% Group EBITDAs margin 60% 38% (22) bps Segment operating income 94 15 (84)% Opinc margin 29% 5% (25) bps IFRS 15 adjustment (10) (26) (177)% IFRS operating income 84 (11) – Operating Cash Flow 103 152 47% Net Segment Cash Flow 62 48 (23)% Supplementary information Adjusted segment EBITDAs before NRC 159 121 (24)% EBITDAs margin 50% 38% (12) bps Adjusted segment operating income before NRC 66 14 (78)% Opinc margin 21% 4% (16) bps
Key Segment Figures – End of December 2023
Key Segment Figures In million $ 2022
Full year 2023
Full year Variances % Segment revenue 928 1,125 21% Segment EBITDAs 434 400 (8)% Group EBITDAs margin 47% 36% (11) bps Segment operating income 180 138 (23)% Opinc margin 19% 12% (7) bps IFRS 15 adjustment 2 (19) – IFRS operating income 182 119 (34)% Operating Cash Flow 346 408 18% Net Segment Cash Flow (3) 32 – Supplementary information Adjusted segment EBITDAs before NRC 395 400 1% EBITDAs margin 43% 36% (7) bps Adjusted segment operating income before NRC 147 138 (6)% Opinc margin 16% 12% (4) bps
Key figures bridge: Segment to IFRS – Fourth Quarter 2023
P&L items
In million $ Segment figures IFRS 15 adjustment IFRS figures Total Revenue 320 (54) 265 OPINC 15 (26) (11) Cash Flow Statement items
In million $ Segment figures IFRS 15 adjustment IFRS figures EBITDAs 122 (54) 68 Change in Working Capital & Provisions 21 55 75 Cash Provided by Operations 152 0 151 Earth Data Data Library NBV
In million $ Segment figures IFRS 15 adjustment IFRS figures Opening Balance Sheet, Oct 1st 23 359 117 476 Closing Balance Sheet, Dec 31st 23 311 147 458
Key figures bridge: Segment to IFRS – End of December 2023
P&L items
In million $ Segment figures IFRS 15 adjustment IFRS figures Total Revenue 1,125 (49) 1,076 OPINC 138 (19) 119 Cash Flow Statement items
In million $ Segment figures IFRS 15 adjustment IFRS figures EBITDAs 400 (49) 351 Change in Working Capital & Provisions 3 49 52 Cash Provided by Operations 408 (0) 408 Earth Data Data Library NBV
In million $ Segment figures IFRS 15 adjustment IFRS figures Opening Balance Sheet , Jan 1st 23 304 115 419 Closing Balance Sheet , Dec 31th 23 311 147 458
Fourth Quarter 2023 Segment Financial Results
Data, Digital & Energy Transition (DDE)
Data, Digital & Energy Transition (DDE)
In million $ 2022
Q4 2023
Q4 Variances % Segment revenue 215 201 (7)% Geoscience 69 98 41% Earth Data 145 103 (29)% Prefunding 67 62 (8)% After-Sales 78 41 (47)% Segment EBITDAs 180 117 (35)% EBITDAs Margin 84% 58% (26) bps Segment operating income 90 20 (78)% OPINC Margin 42% 10% (32) bps Equity from investments (2) 0 -105% Capital employed (in billion $) 1.5 1.5 2% Supplementary information Adjusted segment EBITDAs before NRC 147 117 (20)% EBITDAs Margin 68% 58% (10) bps Adjusted segment OPINC before NRC 62 21 (67)% OPINC Margin 29% 10% (19) bps Other Key Metrics Earth Data cash capex ($m) (25) (29) 16% Earth Data cash prefunding rate (%) 264% 209% (54) bps
Digital, Data and Energy Transition (DDE) segment revenue was $201 million, down (7)% year-on-year.
Geoscience (GEO) revenue was $98 million, up 41% year-on-year driven by delivery of large processing projects. Activity remains solid worldwide with Elastic TLFWI technology continuing to prove its value and receiving recognition from clients. In November, CGG launched Outcome-as-a-Service (OaaS) – a new offering designed to deliver customized, capability-focused HPC and AI solutions for scientific and engineering domains.Earth Data (EDA) revenue was $103 million, down (29)% year-on-year.
Earth Data cash capex was $(29) million this quarter, up 16% year-on-year. Prefunding revenue of our Earth-Data projects was at $62 million and prefunding rate was high this quarter at 209%.
Earth Data after-sales were $41 million this quarter, down (47)% year-on-year mainly due to delayed licensing rounds in Brazil and in the GoM.
The segment library Net Book Value at the end of December 2023 was $311 million ($458 million after IFRS 15 adjustments).
DDE segment EBITDAs was $117 million, a 58% margin due to business mix.
DDE segment operating income was $20 million, a 10% margin.
DDE capital employed were stable at $1.5 billion at the end of December 2023.
Sensing & Monitoring
Sensing & Monitoring
In million $ 2022
Q4 2023
Q4 Variances % Segment revenue 104 119 14% Land 62 36 (42)% Marine 22 66 207% Downhole gauges 7 6 (9)% Beyond the Core 14 11 (20)% Segment EBITDAs 20 11 (46)% EBITDAs margin 19% 9% (10) bps Segment operating income 12 1 (93)% OPINC Margin 12% 1% (11) bps Capital employed (in billion $) 0.6 0.6 (8)% Supplementary information Adjusted segment EBITDAs before NRC 20 9 (56)% EBITDAs margin 20% 8% (12) bps Adjusted segment OPINC before NRC 12 (1) (108)% OPINC Margin 12% -1% (13) bps
Sensing & Monitoring (SMO) segment revenue was $119 million, up 14% year-on-year.
Land equipment sales represented 30% of total sales. Overall activity was high, mainly in North Africa.Marine equipment sales represented 55% of total sales with sales of nodes equipment to Asia and sections of Sentinel for a streamer upgrade.Downhole equipment sales were $6 million.Sales from The New Businesses were $11 million.
SMO segment EBITDAs was $11 million, a 9% low margin due to $(8)m old equipment inventory write-off.
SMO segment operating income was $1 million.
SMO capital employed was stable at $0.6 billion at the end of December 2023.
Fourth Quarter 2023 Financial Results 2023
Consolidated Income Statements
In million $ 2022
Q4 2023
Q4 Variances % Exchange rate euro/dollar 1.00 1.07 7% Segment revenue 319 320 0% DDE 215 201 (7)% Sensing & Monitoring 104 119 14% Elim & Other 0 0 – Segment Gross Margin 101 52 (48)% Segment EBITDAs 193 122 (37)% Adjusted Segment EBITDAS * 159 121 (24%) DDE Adjusted* 147 117 (20)% Sensing & Monitoring Adjusted* 20 9 (56)% Corporate (7) (8) (7)% Elim & Other (1) 2 – Non recurring charges 0 0 – Segment operating income 94 15 (84)% Adjusted Segment Opinc * 66 14 (78%) DDE Adjusted* 62 21 (67)% Sensing & Monitoring Adjusted* 12 (1) (108)% Corporate (8) (8) (3)% Elim & Other (1) 2 – Non recurring charges 0 0 – IFRS 15 adjustment 10 26 177% IFRS operating income 84 (11) (113)% Equity from investments (18) (3) 86% Net cost of financial debt (24) (20) 17% Other financial income (loss) (2) (2) Income taxes 9 11 13% Net income / (loss) from continuing operations 49 (25) (151)% Net income / (loss) from discontinued operations (2) 10 – IFRS net income / (loss) 47 (15) (132)% Shareholder’s net income / (loss) 46 (15) (133)% Basic Earnings per share in $ 0.06 (0.02) (133)% Basic Earnings per share in € 0.06 (0.02) (131)%
Segment revenue was $320 million, stable year-on-year. The respective contributions from the Group’s businesses were 31% from Geoscience, 32% from Earth Data (63% for the DDE segment) and 27% from Sensing & Monitoring.
Segment EBITDAs was $122 million, including $(13)m compensation fees to Shearwater and $(8) million write-off of the equipment inventory, a low 38% margin due to business mix.
Segment operating income was $15 million, a 5% margin. IFRS 15 adjustment at operating income level was $(26) million and IFRS operating income, after IFRS 15 adjustment, was $(11) million.
Cost of financial debt was $(20) million. The total amount of interest paid during the quarter was $(44) million.
Taxes were at $11 million.
Net income from continuing operations was $(25) million. Group Net Income this quarter was $(15) million.
After minority interests, Group net income attributable to CGG shareholders was $(15) million/ €(14) million.
Fourth Quarter 2023 Cash Flow
Cash Flow items
In million $ 2022
Q4 2023
Q4 Variances % Segment Operating Cash Flow 103 152 48% CAPEX (50) (42) (17)% Industrial (18) (8) (55)% R&D (6) (4) (32)% Earth Data (Cash) (25) (29) 16% Marine Offshore (25) (29) 16% Land Onshore 0 0 Proceeds from disposals of assets 62 7 (89)% Segment Free Cash Flow 115 116 1% Lease repayments & asset financing (2) (18) – Paid Cost of debt (45) (44) 3% CGG 2021 Plan (3) (8) (122)% Free cash flow from discontinued operations (2) 1 143% Net Cash Flow 62 48 (23)% Financing cash flow 5 (2) (147)% Forex and other 6 8 19% Net increase/(decrease) in cash 73 52 (29)% Supplementary information Change in working capital and provisions, included in Segment Operating Cash Flow (61) 21 135%
Segment operating cash flow was $152 million, including $21 million positive change in working capital & provisions.
Total Capex was $(42) million:
Industrial Capex was $(8) million,Research & Development Capex was $(4) million, Earth Data cash Capex was $(29) million.
Segment free cash flow was $116 million.
After $(18) million lease repayments & asset financing, $(44) million cash cost of debt, $(8) million CGG 2021 Plan cash costs and $1 million free cash flow from discontinued operations, the Q4 2023 net cash flow was $48 million.
Full year 2023 Financial Results
Consolidated Income Statements
In million $ 2022
Full year 2023
Full year Variances % Exchange rate euro/dollar 1.05 1.08 3% Segment revenue 928 1,125 21% DDE 659 672 2% Sensing & Monitoring 269 453 68% Elim & Other 0 (0) (102)% Segment Gross Margin 270 278 3% Segment EBITDAs 434 400 (8)% Adjusted Segment EBITDAs *
395 400 1% DDE Adjusted* 406 367 (10)% Sensing & Monitoring Adjusted* 16 56 250% Corporate (17) (24) (37)% Elim & Other (4) (1) 82% Non recurring charges 0 0 – Segment operating income 180 138 (23)% Adjusted Segment Opinc * 147 138 (6%) DDE Adjusted* 192 140 (27)% Sensing & Monitoring Adjusted* (14) 24 (273%) Corporate (20) (26) (29)% Elim & Other (5) (1) 80% Non recurring charges 0 0 – IFRS 15 adjustment (2) 19 – IFRS operating income 182 119 (34)% Equity from investments (19) (2) 89% Net cost of financial debt (98) (95) (3)% Other financial income (loss) 0 (4) – Income taxes (17) (14) 19% Net income / (loss) from continuing operations 48 4 (92)% Net income / (loss) from discontinued operations (5) 12 373% IFRS net income / (loss) 43 16 (63)% Shareholder’s net income / (loss) 43 13 (70)% Basic Earnings per share in $ 0.06 0.02 (100)% Basic Earnings per share in € 0.06 0.02 (71)%
Segment revenue was $1,125 million up 21% compared to 2022. The respective contributions from the Group’s businesses were 30% from Geoscience, 30% from Earth Data (60% for the DDE segment) and 40% from SMO.
DDE segment revenue was $672 million, up 2% year-on-year.
Geoscience revenue was $335 million, up 18% year-on-year, sustained by increasing demand worldwide for high-end imaging technology, including demand for OBN imaging.
Earth Data sales were $337 million, down (10)% year-on-year. Prefunding revenue was $194 million, up 43% year-on-year. Earth Data cash capex was $(171) million, down (17)% year-on-year and cash prefunding rate at the end of December was at 113%
After-sales were $143 million, down (40)% compared to $239 million in 2022 that was sustained by high transfer fees and included the land data library.
SMO segment revenue was $453 million, up 68% year-on-year driven by deliveries of land equipment for mega crews and a very high demand for OBN equipment.
Segment EBITDAs was $400 million, down (8)% year-on-year, a 36% margin, due to a low business mix. DDE EBITDAs was $366 million, down (16)% year-on-year, a low 55% margin due to lower EDA sales, and Sensing & Monitoring EBITDA was $59 million, a 13% margin. Segment adjusted EBITDAS was $400 million, up 1% year-on-year.
Segment operating income was $138 million, a 12% margin.
IFRS 15 adjustment at operating income level was $(19) million and IFRS operating income, after IFRS 15 adjustment, was $119 million.
Cost of financial debt was $(95) million. The total amount of interest paid in 2023 was $(91) million. Other financial items were $(4) million.
Taxes were at $(14) million.
Net income from continuing operations was $4 million.
2023 Group net income was $16 million.
After minority interests, 2023 Group net income attributable to CGG’s shareholders at the end of December 2023 was $12.9 million / €11.1 million.
2023 Cash Flow
Cash Flow items
In million $ 2022
Full year 2023
Full year Variances % Segment Operating Cash-Flow 346 408 18% CAPEX (260) (232) (11)% Industrial (33) (44) 33% R&D (21) (17) (21)% Earth Data (Cash) (205) (171) (17)% Marine Offshore (204) (171) (16)% Land Onshore (1) 0 (100)% Proceeds from disposals of assets 63 5 (93)% Segment Free Cash-Flow 149 181 21% Lease repayments & asset financing (38) (35) 8% Paid Cost of debt (92) (91) 2% CGG 2021 Plan (22) (24) (6)% Free cash flow from discontinued operations 0 1 – Net Cash-Flow (3) 32 – Financing cash-flow 7 (6) (192)% Forex and other (24) 3 111% Net increase/(decrease) in cash (21) 29 237% Supplementary information Change in working capital and provisions, included in Segment Operating Cash Flow (52) 3 –
Segment operating cash flow was $408 million up 18% year-on-year, including $3 million positive change in working capital & provisions.
2023 Capex was $(232) million, down (11)% year-on-year:
Industrial Capex was $(44) million, up 33% year-on-year,
Research & development Capex was $(17) million, down (21)% year-on-year,
Earth Data cash Capex was $(171) million, down (17)% year-on-year.
Segment free cash flow was $181 million, up 21% year-on-year.
After lease repayments & asset financing of $(35) million, $(91) million of interest expenses, $(24) million of CGG Plan 2021 and $1 million from discontinued operations, Group net cash flow was $32 million.
Balance Sheet at the end of 223
Group’s liquidity amounted to $417 million at the end of December 31, 2023, including $327 million of cash liquidity and $90 million undrawn RCF.
Group gross debt before IFRS 16 was $1,198 million and net debt was $871 million at the end of December 31, 2023.
Group gross debt after IFRS 16 was $1,301 million and net debt was $974 million at the end of December 31, 2023.
Segment leverage ratio of Net debt to Adjusted* segment EBITDAs was 2.4x at the end of December 2023.
* Adjusted indicators represent supplementary information adjusted for non-recurring gains of asset sales
Q4 2023 Conference call
An English language analysts conference call is scheduled today March 6, at 6.00 pm (CET)
Participants should register for the call here to receive a dial-in number and code or participate in the live webcast from here.
A replay of the conference call will be made available the day after for a period of 12 months in audio format on the Company’s website www.cgg.com.
About CGG
CGG (www.cgg.com) is a global technology and HPC leader that provides data, products, services and solutions in Earth science, data science, sensing and monitoring. Our unique portfolio supports our clients in efficiently and responsibly solving complex digital, energy transition, natural resource, environmental, and infrastructure challenges for a more sustainable future. CGG employs around 3,500 people worldwide and is listed on the Euronext Paris SA (ISIN: 0013181864).
Contacts
Group Communications & Investor Relations
Christophe Barnini
Tel: + 33 1 64 47 38 11
E-Mail: christophe.barnini@cgg.com
FINANCIAL STATEMENTS
31st DECEMBER 2023
In millions of US$
December 31 2023 2022 Operating revenues 1,075.5 926.9 Other income from ordinary activities 0.3 0.5 Total income from ordinary activities 1,075.8 927.4 Cost of operations (817.4) (654.9) Gross profit 258.4 272.5 Research and development expenses – net (26.1) (19.0) Marketing and selling expenses (36.1) (29.6) General and administrative expenses (75.8) (68.2) Other revenues (expenses) – net (1.4) 25.9 Operating income 119.0 181.6 Cost of financial debt – gross (103.3) (100.2) Income from cash and cash equivalents 8.0 1.7 Cost of financial debt – net (95.3) (98.5) Other financial income (loss) (3.8) 0.4 Income (loss) before income taxes and share of income (loss) from companies accounted for under the equity method 19.9 83.5 Income taxes (14.0) (17.2) Net income (loss) before share of net income (loss) from companies accounted for under the equity method 5.9 66.3 Net income (loss) from companies accounted for under the equity method (2.0) (18.5) Net income (loss) from continuing operations 3.9 47.8 Net income (loss) from discontinued operations 12.3 (4.5) Consolidated net income (loss) 16.2 43.3 Attributable to: Owners of CGG 12.9 43.1 Non-controlling interests 3.3 0.2 Weighted average number of shares outstanding 713,128,521 712,088,021 Weighted average number of shares outstanding adjusted for dilutive potential ordinary shares 717,189,330 714,608,919 Net income (loss) per share (in US$) – Base 0.02 0.06 – Diluted 0.02 0.06 Net income (loss) from continuing operations per share (in US$) – Base 0.00 0.07 – Diluted 0.00 0.07 Net income (loss) from discontinued operations per share (in US$) – Base 0.02 (0.01) – Diluted 0.02 (0.01)
In millions of US$ Dec 31, 2023 Dec 31, 2022 ASSETS Cash and cash equivalents 327.0 298.0 Trade accounts and notes receivable, net 310.9 308.3 Inventories and work-in-progress, net 212.9 257.2 Income tax assets 30.8 53.4 Other current financial assets, net – 0.1 Other current assets, net 92.1 99.9 Total current assets 973.7 1,016.9 Deferred tax assets 29.9 24.2 Other non-current assets, net 6.8 8.2 Investments and other financial assets, net 22.7 18.4 Investments in companies accounted for under the equity method 2.2 10.8 Property plant & equipment, net 206.1 167.3 Intangible assets, net 579.7 554.2 Goodwill, net 1,095.5 1,089.4 Total non-current assets 1,942.9 1,872.5 TOTAL ASSETS 2,916.6 2,889.4 LIABILITIES AND EQUITY Financial debt – current portion 58.0 60.4 Trade accounts and notes payable 86.4 92.0 Accrued payroll costs 89.1 85.6 Income taxes payable 12.5 27.2 Advance billings to customers 24.0 29.4 Provisions – current portion 8.7 17.6 Other current financial liabilities 21.3 20.0 Other current liabilities 250.3 222.1 Total current liabilities 550.3 554.3 Deferred tax liabilities 24.3 18.7 Provisions – non-current portion 30.1 28.6 Financial debt – non-current portion 1,242.8 1,188.8 Other non-current financial liabilities 0.5 21.8 Other non-current liabilities 4.3 18.4 Total non-current liabilities 1,302.0 1,276.3 Common stock (a) 8.7 8.7 Additional paid-in capital 118.7 118.6 Retained earnings 980.4 967.9 Other Reserves 27.3 50.0 Treasury shares (20.1) (20.1) Cumulative income and expense recognized directly in equity (1.4) (3.4) Cumulative translation adjustments (90.8) (102.4) Equity attributable to owners of CGG SA 1,022.8 1,019.3 Non-controlling interests 41.5 39.5 Total Equity 1,064.3 1,058.8 TOTAL LIABILITIES AND EQUITY 2,916.6 2,889.4
In millions of US$
December 31 2023 2022 OPERATING ACTIVITIES Consolidated net income (loss) 16.2 43.3 Less: Net income (loss) from discontinued operations (12.3) 4.5 Net income (loss) from continuing operations 3.9 47.8 Depreciation, amortization and impairment 91.5 92.2 Impairment and amortization of Earth Data surveys 153.1 171.4 Amortization and depreciation of Earth Data surveys, capitalized (15.4) (16.0) Variance on provisions (2.6) 1.4 Share-based compensation expenses 2.8 3.0 Net (gain) loss on disposal of fixed and financial assets (1.7) (37.6) Share of (income) loss in companies recognized under equity method 2.0 18.5 Other non-cash items 5.2 (0.4) Net cash flow including net cost of financial debt and income tax 238.8 280.3 Less: Cost of financial debt 95.3 98.5 Less: Income tax expense (gain) 14.0 17.2 Net cash flow excluding net cost of financial debt and income tax 348.1 396.0 Income tax paid 5.5 1.6 Net cash flow before changes in working capital 353.6 397.6 Changes in working capital 54.7 (52.1) – Change in trade accounts and notes receivable 51.8 45.0 – Change in inventories and work-in-progress 49.2 (68.5) – Change in other current assets (9.9) (20.8) – Change in trade accounts and notes payable (5.4) 16.8 – Change in other current liabilities (31.0) (24.6) Net cash flow from operating activities 408.3 345.5 INVESTING ACTIVITIES Total capital expenditures (tangible and intangible assets) net of variation of fixed assets suppliers and excluding Earth Data surveys) (60.9) (54.5) Investments in Earth Data surveys (171.1) (205.3) Proceeds from disposals of tangible and intangible assets 0.4 95.0 Acquisition of investments, net of cash & cash equivalents acquired (1.9) (36.4) Proceeds from divestment of activities and sale of financial assets 6.2 4.9 Variation in subsidies for capital expenditures – (0.1) Variation in other non-current financial assets (5.2) (2.5) Net cash-flow used in investing activities (232.5) (198.9) FINANCING ACTIVITIES Repayment of long-term debt (1.8) (0.1) Total issuance of long-term debt 23.9 10.7 Lease repayments (57.0) (48.4) Financial expenses paid (90.7) (92.4) Loan granted – 1.6 Net proceeds from capital increase – from shareholders 0.1 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 (0.9) (0.9) Net cash-flow from (used in) financing activities (126.4) (129.1) Effect of exchange rate changes on cash 2.6 (16.8) Net cash flows incurred by discontinued operations (23.0) (21.9) Net increase (decrease) in cash and cash equivalents 29.0 (21.2) Cash and cash equivalents at beginning of year 298.0 319.2 Cash and cash equivalents at end of period 327.0 298.0
Attachment
