CGG Announces its Q2 2022 Results

Paris, France | Jul 28, 2022

Strong financial performance
Segment revenue at $240m, up 66% proforma y.o.y.
EBITDAs at $126m and positive net income at $16m
Entering a favorable upcycle

CGG (ISIN: FR0013181864), a global technology and high-performance computing (HPC) leader announced today its second quarter 2022 non-audited results.

Commenting on these results, Sophie Zurquiyah, CGG CEO, said: “CGG delivered strong performance this quarter mainly driven by higher Earth Data after-sales and sustained Geoscience activity. Market trends, driven by continued underinvestment in exploration and production and intensified by elevated energy security concerns, continue to support our view of a multi-year upcycle with increased spending from all clients, as they progressively refocus on exploration to meet future energy demand. The development of our Beyond the Core businesses continues to make good progress with encouraging commercial wins, successful pilots, and recent acquisition of Geocomp and successful bidding to acquire ION Geophysical Corporation’s software business that are reinforcing and expanding the portfolio of our Sensing and Monitoring business. In an inflationary market environment, the business case for our high–end technology, which enables higher efficiency for our clients, becomes even stronger, and I am enthusiastic about the opportunities in front of us.”

Q2 2022: A strong quarter for Data, Digital and Energy Transition

• IFRS figures: revenue at $228m, EBITDAs at $114m, OPINC at $59m
• Segment revenue at $240m, up 66% proforma* year-on-year and up 57% sequentially
  • Geoscience at $70m, up 16% proforma* year-on-year. Sustained activity worldwide with increased level of commercial bids
  • Earth Data at $124m, up 3.4 times year-on-year. High level of after-sales at $88m driven by transfer fees and sales in Latin America
  • Sensing and Monitoring at $46m, down (4)% year-on-year due to shift of deliveries to Q3 2022. Significantly higher activity is anticipated in H2 2022 and in 2023 driven by substantial commercial opportunities for land & marine equipment sales
• Segment EBITDAs at $126m, a high 52% margin due to favorable revenue mix, and adjusted** segment EBITDAs at $122m
• Segment operating income at $66m, a 27% margin, and adjusted** segment operating income at $62m
• Group net income at $16m
• Net cash-flow at $(56)m including $(42) million change in working capital

H1 2022: Significant profitability improvement and positive net cash flow

• IFRS figures: revenue at $404m, EBITDAs at $175m, OPINC at $70m
• Segment revenue at $393m, up 14% proforma* year-on-year
• Segment EBITDAs at $164m, a 42% margin, and adjusted** segment EBITDAs at $161m
• Segment operating income at $61m, a 15% margin, and adjusted** segment operating income at $58m
• Group net loss at $(2)m compared to a net loss of $(136)m in H1 2021
• Net cash flow at $13m including $48 million change in working capital

Balance Sheet at the end of June

• Liquidity of $417m, including cash liquidity of $317m and $100m of undrawn RCF
• Net debt before IFRS 16 at $812m as of June 30, 2022
• Segment leverage ratio of Net debt to Adjusted** Segment EBITDAs was 2.1x at the end of June 2022, down from 2.7x at the end of March 2022

Post Closing event

• Sercel, Sensing & Monitoring division of CGG, was selected as the successful bidder for the acquisition of ION Geophysical Corporation’s (“ION”) software business***

* Pro-forma indicators represent supplementary information adjusted for GeoSoftware and Physical Asset Storage and Services businesses sold in 2021.

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

*** Closing subject to approval by bankruptcy court and other customary conditions.

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Q2 2022 Conference call:

An English language analysts conference call is scheduled the same day at 6.30 pm (CET)

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Participants should from now on register for the call here to receive a dial-in number and code or participate in the live webcast from here.

The press release and the presentation are made available on our website www.cgg.com at 5:45 pm (CET)

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.