French seismic contractor, CGG, has widened its loss in 2015, despite improved quarterly results, on high impairment and non-recurring charges, and as the market slump drove the revenues down by some 32 per cent.
In the fourth quarter 2015, CGG generated revenues of $589 million, down 35 per cent compared to Q4 2014 ($906 million) and up 25 per cent quarter-over-quarter ($470 million). Revenues for the year 2015 decreased by almost $1 billion, compared to what the company generated in 2014 (FY 2015: $2.1 billion; FY 2014 $3.1 billion).
The company recognised quarterly net loss of $256 million, versus $667 million loss same time last year. Full-year loss, however, grew at $1.45 billion against $1.15 billion in 2014. To remind, in the third quarter 2015, as a result of deterioration of market conditions and the reduction in its fleet, CGG booked assets impairment & write-off and non-recurring charges (NRC) of approximately $1 billion.
“2016 will remain difficult with a very weak start of the year. In this context, the group is resolutely implementing its transformation plan, particularly with the reduction in its fleet to 5 vessels by the end of the first quarter of 2016. Contractual data acquisition will gradually decline to less than 15% of group revenue, while GGR will represent more than 60 %. By implementing very rigorous cash management, we target a net debt of less than 2.4 billion dollars by the end of the year,” stated Jean-Georges Malcor, CGG CEO.