(AOF) – To reflect the development of the group, its portfolio of activities and its expertise towards new high-growth markets and its evolution towards a technology company, the business segments of CGG will be renamed as soon as the results are published. financial statements for the first quarter of 2022.
CGG will continue to present its financial information under two business segments, renaming them as follows:
The Geophysics, Geology and Reservoir (GGR) business segment is renamed Data, Digital & Energy Transition (DDE):
The name of the activity Geoscience remains unchanged Geoscience (GEO)
The name of the Multi-Client activity is renamed Earth Data (EDA)
The Equipment business segment is renamed Sensing & Monitoring (SMO).
CGG will report its results for the first quarter of 2022 on May 4 after the financial markets close.
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Key points
– World leader in geosciences;
– Turnover of $1.4 billion; 82% from the Geoscience branch and the rest from the Multi-client and equipment divisions;
– “People, data, technology” business model: ensure the sustainability of the group through positive self-financing whatever the market conditions thanks to “asset-light” / strengthen in activities with strong self-financing generation / balancing the balance sheet and availability / diversifying into the energy transition;
– Split capital, Sophie Zurquiyah being general manager and Philippe Salle chairman of the board of directors of 10 members;
– Healthy but rather stretched balance sheet with net debt, refinanced, of €1 billion, ie a 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 accounting for 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) , efficiency of energy use, 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 divestitures, 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, 5% decline in activities and net loss reduced to $148 million;
– Goal for 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-clients.
Pressure on the oil majors to achieve carbon neutrality by 2050
About twenty institutional investors, such as Allianz or the Caisse des dépôts, have defined a climate reporting standard to assess the ability of oil and gas majors to achieve carbon neutrality objectives by 2050. These institutional investors are members of the Groupe d Investors on Climate Change (IIGCC). Companies must commit and report on their performance on a range of indicators, such as capital expenditure or governance. The implementation of these requirements will be tested with several oil and gas companies such as BP, Eni, Repsol, Shell or Total to then apply to other companies in the sector.