CGG Announces its Fourth Quarter Financial Results 2021

Paris, France | Mar 3, 2022

Strong Q4 2021 Financial Performance
Q4 2021 Segment EBITDAs at $154m, a 51% margin

Accelerating New Business Initiatives
2022 revenue expected to increase by around 10%
Beyond the Core new businesses expected to represent above 20% of revenue in 2025

CGG (ISIN: FR0013181864), a world leader in Geoscience, announced today its fourth quarter 2021 financial results.

Commenting on these results and beyond the core strategy, Sophie Zurquiyah, CGG CEO, said: “CGG delivered solid Q4 and 2021 results in line with expectations, confirming the gradual recovery trends that began earlier in the second half of the year across our businesses. In 2021, CGG extended its leadership and technology differentiation and increased its market share, which puts us in an advantageous position as demand for our products and services continues to increase. We made significant progress towards our carbon neutrality objectives by reducing our scope 1 and scope 2 direct emissions in 2021 to respectively 2 and 43 kt eq.C0₂. In 2022, we will accelerate investment in our core domains to further expand our differentiation, while delivering a stronger segment EBITDA margin due to the full impact of costs savings, revenue growth and a more favorable business mix.
Beyond our core businesses, CGG made substantial progress through 2021, organically growing to over 150 engineers focused on developing and offering a range of new technology and solutions to our traditional and new client base. Today these new businesses represent approximately 5% of Group’s revenue, which provides a solid foundation for accelerated growth. As we continue to transform the CGG business profile into a technology company, we have the ambition to become a global leader in specialized Digital Sciences, Energy Transition technologies and services, and Monitoring & Observation solutions. These Beyond the Core new businesses are expected to generate above 20% of total revenue in 2025.”

Q4 2021: A strong operational & financial performance

• IFRS figures: revenue at $471m, EBITDAs at $324m, OPINC at $(23)m
• Segment revenue at $301m, up 7% year-on-year and up 12% sequentially
  Geoscience segment revenue at $93m, up 24% year-on-year
  Multi-Client segment sales at $114m, up 13% year-on-year
  Equipment segment sales at $94m, down (12)% year-on-year
• Segment EBITDAs at $154m a 51% margin and Adjusted* Segment EBITDAs at $150m 
• Segment Operating Income / (loss) at $(57)m including $(23)m fair value adjustment of a multi-client survey and $(102)m impairment of the multi-client goodwill. Adjusted* Segment Operating Income at $78m
• Group Net loss at $(28)m 
• Net Cash Flow at $81m

*Adjusted indicators represent supplementary information adjusted for non-recurring charges triggered by economic downturn.

Conference Call

• The press release and the slide presentation will be made available on our website www.cgg.com at 5:45 pm (CET)
• An English language analysts conference call is scheduled the same day at 6.30 pm (CET)

To follow the conference call, please access the audio webcast from your computer at www.cgg.com

Please dial 5 to 10 minutes prior to the scheduled start time the following numbers:

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.