(AOF) – Phase 3 of CGG’s 3D multi-client study located in the northern North Sea intended to enrich the existing ‘Northern Viking Graben’ (NVG) program with the contribution of a second azimuth and to extend CGG’s coverage into the UK’s vast continental shelf (UKCS) is expected to begin in early May 2022. This phase is expected to continue throughout the North Sea season. It completes phases 1 and 2 of 2020 and 2021. The first images of phase 3 should be available at the beginning of 2023 and the final images at the beginning of 2024.
This study is pre-financed by the clients of the French group.
Sophie Zurquiyah, CEO of CGG, declared: “With this phase 3 of our multi-year program, CGG is continuing its strategic trajectory of extending and enriching its data library in mature regions.
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Key points
– World leader in geosciences;
– Turnover of $ 1.4 billion; 82% coming from the Geoscience branch and the rest from the Multi-client and equipment divisions;
– “People, data, technology” business model: ensuring the sustainability of the group through positive self-financing whatever the market conditions thanks to “asset-light” / strengthening in activities with high self-financing generation / balance the balance sheet and availability / diversify into the energy transition;
– Shattered capital, Sophie Zurquiyah being managing director and Philippe Salle chairman of the 10-member board of directors;
– Healthy but rather tight balance sheet with net debt, refinanced, of € 1 billion, ie leverage of 2.8 and a debt ratio of 86%.
Challenges
– Innovation strategy at the source of 30% of annual turnover, boosted by R&D weighing 11% of turnover, focused on computing power;
– Environmental strategy with 2 deadlines, 2030 and 2050: 50% reduction in CO2 emissions then total neutrality (vs. 2020), increase in the rate of use of renewable energies to 50% then 100 (vs. 30% in 2020) , energy use efficiency, launch of credit facilities aligned with ESG criteria;
– Diversifications in digital geoscience and the HPC cloud;
– By the end of the year, monetization of assets and sales of activities, particularly in data.
Challenges
– Confirmation of the rebound in activity and the return to profitability recorded in 3
th
trimester ;
– At the end of September 2021, a 5% decline in activities and a net loss reduced to $ 148 million;
– Objective for the 4
th
quarter 2021: confirmation of the recovery for Geosciences, sales in particular in North Africa for equipment and industrial investments of $ 40 million for multi-customers.
Achieve carbon neutrality
In 2021, oil companies will devote 4% of their spending to carbon-free energies, against only 1% in 2020. These investments are still largely insufficient to fight against climate change, warns the International Energy Agency. They remain very unequal according to the actors. Total will invest $ 3 billion in carbon-free energies and electricity generation this year, or more than 20% of its spending. The group forecasts a proportion of at least 15% on average by 2025. This proportion is much lower for the Americans Exxon and Chevron or for the national companies of producing countries such as the Saudi Aramco, the Russian Gazprom or the Brazilian Petrobras . As for Shell, the Dutch justice recently ordered it to reduce its emissions by 45% by 2030.