CGG Renames Business Segment-April 19, 2022 08:05

(AOF)-CGG’s business segments will be renamed as soon as the results are announced to reflect the Group’s development, portfolio of activities, expertise for new high-growth markets and evolution towards technology companies. Results for the first quarter of 2022.

CGG will continue to present financial information in two business segments and rename it as follows:

The Geophysics, Geology and Reservoir (GGR) business segment has been renamed to Data, Digital & Energy Transition (DDE).

The name of the Earth Science activity has not changed Earth Science (GEO)

The multi-client activity has been renamed to Earth Data (EDA).

The equipment business segment has been renamed to Sensing & Monitoring (SMO).

CGG reports the results of the first quarter of 2022 on May 4, after the financial markets are closed.

AOF-Details

Key Point

-World leader in earth science.

-Sales of $ 1 billion. 82% from the Earth Sciences sector and the rest from the Multi-Client and Equipment sector.

-“People, Data, Technology” Business Model: Thanks to “Asset Lite” to ensure group sustainability through aggressive self-financing regardless of market conditions / activities that involve the generation of strong self-financing Enhancement / Balance Sheet and Availability / Diversification to Energy Conversion;

-The split capital, Sophie Zulkya, is the general manager and Philippe Saar is the chairman of the board of directors with 10 members.

-A healthy but well-developed balance sheet with a net debt refinancing of € 1 billion, a leverage of 2.8 and a debt ratio of 86%.

Task

-Innovation strategy at the source of 30% of annual sales, backed by R & D, which accounts for 11% of sales, with a focus on computing power.

-Environmental strategy with two deadlines of 2030 and 2050: 50% reduction in CO2 emissions, then fully neutral (compared to 2020), renewable energy utilization of 50% and 100 (2020) 30%), efficient energy consumption, and launch of credit facility in line with ESG standards.

-Diversification of digital earth science and HPC cloud.

-By the end of the year, monetization of assets and sales, especially in the data.

Task

Confirmation of activity recovery and profitability recovery recorded in -3

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Trimester;

-At the end of September 2021, a 5% decrease in activity and a net loss decreased to $ 148 million.

-4 goals

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Quarter 2021: Confirmation of Earth Science Recovery, Equipment Sales, Especially in North Africa, and $ 40 Million Industrial Investment in Multi-Client.

Pressure on oil majors to achieve carbon neutrality by 2050

Approximately 20 institutional investors, such as Allianz and Caisse des dépôts, have defined climate reporting standards to assess the capacity of oil and gas majors to reach their carbon-neutral goals by 2050. These institutional investors are members of Grouped Investors on Climate Change. (IIGCC). Companies need to commit and report on various indicators such as capital spending and governance. Implementations of these requirements have been tested by several oil and gas companies such as BP, Eni, Repsol, Shell and Total and apply to other companies in the sector.

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