- Year-on-year revenue decline of 25.8% or 23.4% on a currency comparable basis, in line with oil and gas market developments.
- Negative low single digit EBIT margin in traditionally weak first quarter as a result of ongoing challenging market conditions.
- Positive cash flow from operating activities after investments (including proceeds from sale and lease back of a geotechnical vessel).
- Further reduction of net debt; net debt/EBITDA of 1.7 compared to covenant requirement of below 3.0 .
- In April, agreement reached on sale of CGG USD 90 million term loan for around USD 71 million (EUR 63 million), to be fully applied to debt reduction.
- Backlog for the next 12 months decreased by 22.3% on currency comparable basis compared to a year ago and by 8.6% compared to the previous quarter.
- Outlook 2016: positive cash flow, further reduction of cost base and severe pressure on margins.
|Key figures (x EUR million)
||currency comparable growth
|Backlog remainder of the year
|Backlog next 12 months
|Net debt/ EBITDA
Paul van Riel, CEO:
"The exceptionally deep downturn in oil and gas services has by now entered its third year. We had already guided for a very difficult 2016, and during the past months our clients' exploration and production budgets again declined significantly. We are therefore anticipating strong revenue decline and severe margin pressure. We are continuing to adjust our cost base and capacity to market reality. Generating positive cash flow is our number one priority.
Also under these tough market circumstances we are executing on our strategy and we are successful in strengthening our market leadership positions. The non-oil and gas related building, infrastructure and power markets continue to provide good opportunities in several regions. In the oil and gas market, there is increasing evidence that fundamentals are moving back towards balance. In recent months, the oil price has gradually increased from its lowest point early this year but it is uncertain when this will have a positive impact on our business. Overall, the company is well positioned to benefit from the recovery in the market when the supply-demand balance is restored and markets start to recover."