CGG: CGG Announces its Q2 2021 Results

7/28, 7:00 AM (Source: GlobeNewswire)

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CGG Announces its Q2 2021 Results

Soft quarterly revenue

Recovery anticipated in H2

Asset monetization progressing as planned

PARIS, France – July 28, 2021CGG (ISIN: FR0013181864), a world leader in Geoscience, announced today its second quarter 2021 non-audited results.

Commenting on these results, Sophie Zurquiyah, CGG CEO, said:

During the first half of the year, the oil price environment has become more favorable. However, this has not translated yet into increase in geoscience-related spending by our customers. Considering the lack of investments by E&P companies, the need to increase spending, to better understand the subsurface and develop new opportunities, has continued to grow. Among our three businesses, Multi-client has been the most affected by the spending delays. Looking forward, following the soft first half of the year, activity is expected to strengthen in the second half of 2021 and onwards. With its high-end Geoscience and Equipment technologies, and superior quality Multi-client data in the world’s most attractive basins, CGG is well positioned to provide our clients with the solutions they require to increase the effectiveness of their activities, while meeting their ESG goals. In this environment, technology innovation, business diversification, and cash generation, remain our top priorities.”  

Q2 2021: A soft quarter for Multi-client and Equipment

  • IFRS figures: revenue at $172m, EBITDAs at $56m, OPINC at $(1)m
  • Segment revenue at $157m, down (22)% year-on-year and down (26)% sequentially
    • Geoscience segment revenue at $73 million, down (12) % year-on-year and up 11% sequentially
    • Multi-Client segment sales at $37 million, including $20 million after-sales, down (40)% year-on-year and up 8% sequentially
    • Equipment segment sales at $48 million, down (19)% year-on-year and down (58)% sequentially
  • Segment EBITDAs at $42m and Adjusted* Segment EBITDAs at $35m, a 22% margin due to unfavorable revenue mix
  • Segment Operating Income at $(7)m and Adjusted* Segment Operating Income at $(15)m
  • Group Net loss at $(51)m
  • Net Cash Flow at $(56)m before $(39)m of fees related to the refinancing
H1 2021: A soft semester

  • IFRS figures: revenue at $380m, EBITDAs at $88m, OPINC at $(15)m
  • Segment revenue at $370m, down (22)% year-on-year
  • Segment EBITDAs at $78m and Adjusted* Segment EBITDAs at $75m, a 20% margin due to unfavorable revenue mix
  • Segment Operating Income at $(18)m and Adjusted* Segment Operating Income at $(28)m
  • Group Net loss at $(132)m divided by two year on year
  • Net Cash Flow at $(27)m before $(39)m of fees related to the refinancing 
Balance Sheet at the end of June

  • The physical asset storage business of CGG has been put for sale
  • The sale of the GeoSoftware business is progressing as planned with a closing expected in Q4 2021
  • The sale and lease back of the headquarter building is progressing as planned with a closing expected in Q4 2021
  • Liquidity of $385m and cash liquidity of $285m after reducing gross debt by $28m as part of refinancing. Net debt before IFRS 16 at $935m as of June 30, 2021
2021 Revised Financial Objectives

  • CGG is expecting in 2021 a gradual recovery in Geoscience activity quarter after quarter, around 25% growth in Equipment sales year-on-year, Multi-Client cash capex of around $165 million with over 75% prefunding and lower than originally expected Multi-client after-sales, up year-on-year.
  • CGG anticipates full year 2021 segment revenue to be flat year-on-year and segment EBITDAs to be around $310 million impacted by a slow recovery in multi-client data purchases, mainly by IOCs.
  • The planned asset monetization and divestiture of businesses held for sale are progressing well and on track to close in Q4, which will allow CGG to generate positive net cash flow in 2021.
*Adjusted indicators represent supplementary information adjusted for non-recurring charges triggered by economic downturn.

Key Figures - Second Quarter 2021

Key Figures IFRS - Quarter
In million $
2020
Q2
2021
Q2
Variances %
  Operating revenues 239 172 (28)%
  Operating Income (32) (1) 97%
  Equity from Investment - - -
  Net cost of financial debt (33) (33) (2)%
  Other financial income (loss) (36) (4) 90%
  Income taxes (33) (7) 80%
  Net Income / Loss from continuing operations (134) (44) 67%
  Net Income / Loss from discontinued operations (13) (7) 50%
  Group net income / (loss) (147) (51) 65%
  Operating Cash Flow 81 54 (33)%
  Net Cash Flow (77) (56) 28%
  Net debt 783 1,070 37%
  Net debt before lease liabilities 626 935 49%
  Capital employed 2,129 2,108 (1)%

Key Figures – First half 2021

Key Figures IFRS – First half
In million $
2020
H1
2021
H1
Variances %
  Operating revenues 491 380 (23)%
  Operating Income (72) (15) 79%
  Equity from Investment - - -
  Net cost of financial debt (66) (68) (3)%
  Other financial income (loss) (30) (42) (40)%
  Income taxes (38) (12) 68%
  Net Income / Loss from continuing operations (205) (136) 34%
  Net Income / Loss from discontinued operations (40) 5 112%
  Group net income / (loss) (245) (132) 46%
  Operating Cash Flow 226 159 (30)%
  Net Cash Flow (60) (27) 55%
  Net debt 783 1 070 37%
  Net debt before lease liabilities 626 935 49%
  Capital employed 2,129 2,108 (1)%

Key Segment Figures - Second Quarter 2021

Key Segment Figures - Quarter
In million $
2020
Q2
2021
Q2
Variances %
  Segment revenue 202 157 (22)%
  Segment EBITDAs 68 42 (39)%
  Group EBITDAs margin 34% 26% (7) bps
  Segment operating income (53) (7) 86%
  Opinc margin (26)% (5)% 22 bps
  IFRS 15 adjustment 21 6 (70)%
  IFRS operating income (32) (1) 97%
  Operating Cash Flow 81 54 (33)%
  Net Segment Cash Flow (77) (56) 28%
  Supplementary information      
  Adjusted segment EBITDAs before NRC 76 35 (53)%
  EBITDAs margin 37% 22% (15) bps
  Adjusted segment operating income before NRC (5) (15) (231)%
  Opinc margin (2)% (10)% (7) bps

Key Segment Figures – First half 2021

Key Segment Figures – First half
In million $
2020
H1
2021
H1
Variances %
  Segment revenue 473 370 (22)%
  Segment EBITDAs 191 78 (59)%
  Group EBITDAs margin 40% 21% (19) bps
  Segment operating income (84) (18) 79%
  Opinc margin (18)% (5)% (13) bps
  IFRS 15 adjustment 12 3 (74)%
  IFRS operating income (72) (15) 79%
  Operating Cash Flow 226 159 (30)%
  Net Segment Cash Flow (60) (27) 55%
  Supplementary information      
  Adjusted segment EBITDAs before NRC 200 75 (63)%
  EBITDAs margin 42% 20% (22) bps
  Adjusted segment operating income before NRC 36 (28) (178)%
  Opinc margin 8% (7)% (15) bps

Key figures bridge: Segment to IFRS - Second Quarter 2021

P&L items
In million $
Segment figures IFRS 15 adjustment IFRS figures
  Total Revenue 157 14 172
  OPINC (7) 6 (1)
    
Cash Flow Statement items
In million $
Segment figures IFRS 15 adjustment IFRS figures
  EBITDAs 42 14 56
  Change in Working Capital & Provisions 14 (14) 0
  Cash Provided by Operations 54 - 54
 
 

 
 
Multi-Client Data Library NBV
In million $
Segment figures IFRS 15 adjustment IFRS figures
Opening Balance Sheet , Apr 1st 21 291 204 495
Closing Balance Sheet , Jun 30th 21 313 203 516

Key figures bridge: Segment to IFRS – First half 2021

P&L items
In million $
Segment figures IFRS 15 adjustment IFRS figures
  Total Revenue 370 10 380
  OPINC (18) 3 (15)
    
Cash Flow Statement items
In million $
Segment figures IFRS 15 adjustment IFRS figures
  EBITDAs 78 10 88
  Change in Working Capital & Provisions 87 (10) 77
  Cash Provided by Operations 159 - 159
 
 

 
 
Multi-Client Data Library NBV
In million $
Segment figures IFRS 15 adjustment IFRS figures
Opening Balance Sheet , Jan 1st 21 285 207 492
Closing Balance Sheet , Jun 30th 21 313 203 516

Second Quarter 2021 Segment Financial Results

Geology, Geophysics & Reservoir (GGR)

Geology, Geophysics & Reservoir (GGR)
In million $
2020
Q2
2021
Q2
Variances %
  Segment revenue 144 110 (24)%
  Geoscience (SIR) 83 73 (12)%
  Multi-Client 62 37 (40)%
      Prefunding 46 17 (63)%
      After-Sales 15 20 28%
  Segment EBITDAs 74 55 (26)%
  EBITDAs Margin 51% 50% (1) bps
  Segment operating income (39) 15 138%
  OPINC Margin (27)% 13% 40 bps
  Equity from investments - - -
  Capital employed (in billion $) 1.6 1.6 (1)%
  Supplementary information      
  Adjusted segment EBITDAs before NRC 81 49 (39)%
  EBITDAs Margin 56% 45% (11) bps
  Adjusted segment OPINC before NRC 9 7 (24)%
  OPINC Margin 6% 6% (0) bps
  Other Key Metrics      
  Multi-Client cash capex ($m) (73) (43) 40%
  Multi-Client cash prefunding rate (%) 63% 39% (24) bps

GGR segment revenue was $110 million, down (24)% year-on-year.

  • Geoscience revenue was $73 million, down (12)% year-on-year.

    Geoscience continued its progressive recovery in Q2. In H1 2021, order intake more than doubled year on year and we are anticipating significant awards in major basins of Gulf of Mexico, Brazil and Guyana.

    The increasing focus from our clients on future field development is driving demand for OBN data and especially for our processing sequences to image better-defined fault blocks in highly complex reservoirs.
  • Multi-Client revenue was $37 million, down (40)% year-on-year.

    Multi-client cash capex was $(43) million this quarter, (40)% lower than in Q2 2020. In Q2 we had two vessels working on multi-client programs as we have commenced work on a five-month 3D multi-client program in the Norwegian North Sea in addition to our on-going project in Brazil. Prefunding revenue of our multi-client projects was $17 million and prefunding rate was 39% as some prefunding slipped into Q3.

    Multi-client after-sales were at $20 million this quarter, up 28% year-on-year.

    The segment library Net Book Value was $313 million ($516 million after IFRS 15 adjustments) at the end of June 2021, split 85% offshore and 15% onshore.

GGR segment EBITDAs was $55 million, a 50% margin, and GGR Adjusted* segment EBITDAs was $49 million, a 45% margin.

GGR segment operating income was $15 million and GGR Adjusted* segment operating income was $7 million.

GGR capital employed was stable at $1.6 billion at the end of June 2021.

Equipment

Equipment
In million $
2020
Q2
2021
Q2
Variances %
  Segment revenue 58 48 (19)%
    Land 45 29 (36)%
    Marine 10 12 25%
    Downhole gauges 3 4 63%
    Non Oil & Gas 1 3 82%
  Segment EBITDAs - (9) -
  EBITDAs margin 0% (18)% (19) bps
  Segment operating income (7) (16) (124)%
  OPINC Margin (12)% (34)% (22) bps
     
  Capital employed (in billion $) 0.5  0.5  (1)% 
  Supplementary information      
  Adjusted segment EBITDAs before NRC 1 (8) -
  EBITDAs margin 2% (17)% (20) bps
  Adjusted segment OPINC before NRC (6) (16) -
  OPINC Margin (11)% (33)% (22) bps

Equipment segment revenue was low as planned this quarter at $48 million, down (19)% year-on-year.

  • Land equipment sales represented 60% of total sales, as we delivered in Q2 systems in various geographies (China, Russia, Middle-East). Activity for the vibrators was strong with over 25 ‘Nomad’ delivered.
  • Marine equipment sales represented 25% of total sales. Sercel was awarded a major contract with BGP for the delivery of 18,000 GPR300 nodes. This quarter, Sercel finalized the acquisition of LISS (Low Impact Seismic Sources).
  • Downhole equipment sales were $4 million and sales from non Oil & Gas equipment were $3 million.

Equipment segment EBITDAs was $(9) million and Equipment Adjusted* segment EBITDAs was $(8) million, a (17)% margin.

Equipment segment operating income was $(16) million and Equipment Adjusted* segment operating income was $(16) million, a (33)% margin.

Equipment capital employed increased to $0.5 billion at the end of June 2021.

Second Quarter 2021 Financial Results

Consolidated Income Statements
In million $
2020
Q2
2021
Q2
Variances %
  Exchange rate euro/dollar 1.10 1.20 9%
  Segment revenue 202 157 (22)%
  GGR 144 110 (24)%
  Equipment 58 48 (19)%
  Elim & Other (1) - -
  Segment Gross Margin 24 9 (63)%
  Segment EBITDAs 68 42 (39)%
  GGR 81 49 (39)%
  Equipment 1 (8) -
  Corporate (6) (3) 40%
  Elim & Other - (2) -
  Severance costs (7) 6 -
  Segment operating income (53) (7) 86%
  GGR 9 7 (24)%
  Equipment (6) (16) -
  Corporate (7) (4) 40%
  Elim & Other (1) (2) -
  Non recurring charges (49) 8 -
  IFRS 15 adjustment 21 6 (70)%
  IFRS operating income (32) (1) 97%
  Equity from investments - - -
  Net cost of financial debt (33) (33) (2)%
  Other financial income (loss) 1 (4) -
  Income taxes (24) (7) (73)%
  NRC (Tax & OFI) (46)  -  -
  Net income / (loss) from continuing operations (134) (44) 67%
  Net income / (loss) from discontinued operations (13) (7) 50%
  IFRS net income / (loss) (147) (51) 65%
  Shareholder's net income / (loss) (147) (50) 66%
  Basic Earnings per share in $ (0.21) (0.07) 66%
  Basic Earnings per share in € (0.19) (0.06) 69%

Segment revenue was $157 million, down (22)% year-on-year. The respective contributions from the Group’s businesses were 46% from Geoscience, 24% from Multi-Client (70% for the GGR segment) and 30% from Equipment.

Segment EBITDAs was $42 million and Adjusted* segment EBITDAs was $35 million, down (53)% year-on-year, a 22% margin due to the unfavorable business mix.

Segment operating income was $(7) million and Adjusted* segment operating income was $(15) million.

IFRS 15 adjustment at operating income level was $6million and IFRS operating income, after IFRS 15 adjustment, was $(1) million.

Cost of financial debt was $(33) million. The total amount of interest paid during the quarter was $(30) million.

Other Financial Items were at $(4) million.

Taxes were at $(7) million.

Net loss from continuing operations was $(44) million.

Discontinued operations : Correspond to the former Contractual Data Acquisition and Non-Operated Resources segments. Main aggregates are as follows:

- Q2 revenue from discontinued operations was $12 million.

- Net loss from discontinued operations was $(7) million this quarter.

- Net Cash flow from discontinued operations was $0 million.

Group net loss was $(51) million.

After minority interests, Group net loss attributable to CGG shareholders was $(50) million/ €(42) million.

Second Quarter 2021 Cash Flow

Cash Flow items
In million $
2020
Q2
2021
Q2
Variances %
  Segment Operating Cash Flow 81 54 (33)%
  CAPEX (89) (57) (36)%
   Industrial (4) (6) 26%
   R&D (12) (8) (32)%
   Multi-Client (Cash) (73) (43) (40)%
      Marine MC (62) (43) (30)%
      Land MC (11) - (97)%
   Proceeds from disposals of assets - - -
  Segment Free Cash Flow (8) (3) 63%
  Lease repayments (15) (15) 1%
  Paid Cost of debt (32) (30) (8)%
  CGG 2021 Plan (22) (8) (64)%
  Free cash flow from discontinued operations - - -
Net Cash flow (77) (56) 28%
  Financing cash flow - (67)  -
  Forex and other (1) 1 -
  Net increase/(decrease) in cash (78) (122) (56)%
  Supplementary information      
Change in working capital and provisions, included in Segment Operating Cash Flow 15 14 (7)%
From severance cash costs (3) (6) 89%
Segment Free Cash Flow before severance cash costs (5) 3 -


Segment Operating Cash Flow
was $54 million, a (33)% decrease.

Total capex was $(57) million:

  • Industrial capex was $(6) million,
  • Research & Development capex was $(8) million,
  • Multi-client cash capex was $(43) million

Segment Free Cash Flow was $(3)million

After $(15) million lease repayments, $(30) million paid cost of debt, $(8) million 2021 Plan cash costs and $0 million free cash flow from discontinued operations, Net Cash Flow was $(56) million.

Refinancing impact on cash flow was $(67) million, including $(39) million refinancing fees and call premiums, and $(28) million net reduction in principal.

First Half 2021 Financial Results

Consolidated Income Statements
In million $
YTD June 2020 YTD June 2021 Variances %
  Exchange rate euro/dollar 1.10 1.21 10%
  Segment revenue 473 370 (22)%
  GGR 342 210 (38)%
  Equipment 133 161 21%
  Elim & Other (2) (1) 52%
  Segment Gross Margin 97 26 (74)%
  Segment EBITDAs 191 78 (59)%
  GGR 204 80 (61)%
  Equipment 9 8 (16)%
  Corporate (12) (9) 24%
  Elim & Other (1) (4) (220)%
  COVID-19 plan (9) 3 130%
  Segment operating income (84) (18) 79%
  GGR 57 (4) (107)%
  Equipment (6) (8) (30)%
  Corporate (13) (11) 17%
  Elim & Other (2) (4) (175)%
  Non recurring charges (120) 10 108%
  IFRS 15 adjustment 12 3 (74)%
  IFRS operating income (72) (15) 79%
  Equity from investments - - -
  Net cost of financial debt (66) (68) (3)%
  Other financial income (loss) 7 (42) -
  Income taxes (29) (12) (58)%
  NRC (Tax & OFI) (46) - -
  Net income / (loss) from continuing operations (205) (136) 34%
  Net income / (loss) from discontinued operations (40) 5 -
  IFRS net income / (loss) (245) (132) 46%
  Shareholder's net income / (loss) (247) (133) 46%
  Basic Earnings per share in $ (0.35) (0.19) 46%
  Basic Earnings per share in € (0.31) (0.15) 51%

Segment revenue was $370 million, down 22% compared to H1 2020. The respective contributions from the Group’s businesses were 38% from Geoscience, 19% from Multi-Client (57% for the GGR segment) and 43% from Equipment.

GGR segment revenue was $210 million, down (38)% year-on-year

  • Geoscience revenue was $139 million, down (21)% year-on-year
  • Multi-Client sales reached $71 million, down (57)% year-on-year. Prefunding revenue was $32 million, down (69)% year-on-year. Multi-Client cash capex was $(74) million, down (47)% year-on-year. Cash prefunding rate was 44%.

After-sales were $39 million, down (38)%.

Equipment revenue was $161 million, up 21% year-on-year.  

Segment EBITDAs was $78 million, down (59)% year-on-year, a low 21% margin. GGR EBITDA margin was low at 40% and Equipment EBITDA margin at 4%.

Segment operating income was $(18) million.

IFRS 15 adjustment at operating income level was $3 million and IFRS operating income, after IFRS 15 adjustment, was $(15) million.

Cost of financial debt was $(68) million. The total amount of interest paid during H1 was $(36) million.

Other Financial Items were $(42) million, including $(39) million of fees related to the refinancing.

Taxes were at $(12) million.

Net income from continuing operations was $(136) million.

Discontinued operations

Correspond to the former Contractual Data Acquisition and Non-Operated Resources segments. Main aggregates are as follows:

-H1 revenue from discontinued operations was $19 million.

-Net income from discontinued operations was $5 million.

-Net Cash flow from discontinued operations was $0 million. 

Group net loss was $(132) million.

After minority interests, H1 2021 Group loss attributable to CGG’s shareholders was $(133) million / €(110) million.

Cash Flow

Cash Flow items
In million $
YTD June 2020 YTD June 2021 Variances %
  Segment Operating Cash Flow 226 159 (30)%
  CAPEX (177) (99) (44)%
   Industrial (12) (9) (25)%
   R&D (24) (16) (32)%
   Multi-Client (Cash) (140) (74) (47)%
      Marine MC (113) (73) (36)%
      Land MC (27) (1) (97)%
   Proceeds from disposals of assets - (3) -
  Segment Free Cash Flow 50 57 16%
  Lease repayments (29) (29) (2)%
  Paid Cost of debt (40) (36) (8)%
  Plan 2021 (50) (19) (62)%
  Free cash flow from discontinued operations 9 - -
  Net Cash flow (60) (27) 55%
  Financing cash flow - (67) -
  Forex and other (5) (6) (18)%
  Net increase/(decrease) in cash (65) (100) (54)%
  Supplementary information      
Change in working capital and provisions, included in Segment Operating Cash Flow 36 87 142%
From severance cash costs (4) (12) (180)%
Segment Free Cash Flow before severance cash costs 54 69 28%

Segment Operating Cash Flow was $159 million compared to $226 million for the first half of 2020, a (30)% decrease.

Capex was $(99) million, down (44)% year-on-year,

  • Industrial capex was $(9) million, down (25)% year-on-year,
  • Research & Development capex was $(16) million, down (32)% year-on-year,
  • Multi-client cash capex was $(74) million, down (47)% year-on-year.

Segment Free Cash Flow was at $57 million up 16% year-on-year.

After the payment of interest expenses of $(36) million, lease repayments of $(29) million, CGG 2021 Plan cash costs of $(19) million and neutral free cash flow from discontinued operations, Group Net Cash Flow was $(27) million, compared to $(60) million for the first half of 2020.

Refinancing impact on cash flow was $(67) million, including $(39) million refinancing fees and call premiums, and $(28) million net reduction in principal.

Balance Sheet 

Group’s liquidity amounted to $385 million at the end of June 30, 2021 and cash liquidity of $285m after reducing gross debt by $28m as part of refinancing.

Group gross debt before IFRS 16 was $1,220 million at the end of June 30, 2021 and net debt was $935 million.

Group gross debt after IFRS 16 was $1,355 million at the end of June 30, 2021 and net debt was $1070 million.

Segment leverage ratio of Net debt to Adjusted segment EBITDAs was 3.9x at the end of June 2021.
 

Q2 2021 Conference call

An English language analysts’ conference call is scheduled today at 8:00 am (Paris time) – 7:00 am (London time)

To follow this conference, please access the live webcast:

From your computer at: www.cgg.com


 

A replay of the conference will be available via webcast on the CGG website at: www.cgg.com.

For analysts, please dial the following numbers 5 to 10 minutes prior to the scheduled start time:

France call-in: +33 (0) 1 70 70 07 81
UK call-in: +44(0) 844 4819 752
Access Code: 9761434

About CGG

CGG (www.cgg.com) is a global geoscience technology leader. Employing around 3,700 people worldwide, CGG provides a comprehensive range of data, products, services and solutions that support our clients to more efficiently and responsibly solve complex natural resource, environmental and infrastructure challenges. CGG is listed on the Euronext Paris SA (ISIN: 0013181864).

Contacts

Group Communications & Investor Relations
Christophe Barnini
Tel: + 33 1 64 47 38 11
E-Mail: christophe.barnini@cgg.com

CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2021

Unaudited Interim Consolidated statements of operations

  Six months ended June 30,
(In millions of US$, except per share data) 2021 2020
Operating revenues 380.2  491.2
Other income from ordinary activities 0.3  0.5
Total income from ordinary activities 380.5 491.7
Cost of operations (351.6)  (382.5)
Gross profit 28.9  109.2
Research and development expenses - net (9.9)  (7.5)
Marketing and selling expenses (14.3)  (17.2)
General and administrative expenses (30.3)  (36.3)
Other revenues (expenses) - net 10.7  (120.3)
Operating income (loss) (14.9)  (72.1)
Expenses related to financial debt (68.3)  (67.2)
Income provided by cash and cash equivalents 0.7  1.5
Cost of financial debt, net (67.6)  (65.7)
Other financial income (loss)  (42.0)  (30.0)
Income (loss) before incomes taxes (124.5)  (167.8)
Income taxes (12.1)  (37.6)
Net income (loss) from consolidated companies before share of income (loss) in companies accounted for under the equity method (136.6)  (205.4)
Share of income (loss) in companies accounted for under the equity method 0.1  0.1
Net income (loss) from continuing operations (136.5)  (205.3)
Net income (loss) from discontinued operations 4.9  (40.0)
Net income (loss) (131.6)  (245.3)
Attributable to :    
Owners of CGG S.A (132.7)  (246.6)
Non-controlling interests 1.1  1.3
Net income (loss) per share    
Basic  (0.19)  (0.35)
Diluted  (0.19)  (0.35)
Net income (loss) from continuing operations per share    
Basic  (0.20)  (0.29)
Diluted  (0.20)  (0.29)
Net income (loss) from discontinued operations per share    
Basic  0.01  (0.06)
Diluted  0.01  (0.06)

Unaudited Consolidated statements of financial position

(In millions of US$) June 30, 2021 December 31, 2020
ASSETS    
Cash and cash equivalents 285.2 385.4
Trade accounts and notes receivable, net 231.5 325.0
Inventories and work-in-progress, net 228.8 237.8
Income tax assets 86.0 84.6
Other current financial assets, net - 13.7
Other current assets, net 94.7 92.0
Assets held for sale, net 135.3 117.7
Total current assets 1,061.5 1,256.2
Deferred tax assets 7.4 10.3
Investments and other financial assets, net 12.2 13.6
Investments in companies under the equity method 3.1 3.6
Property, plant and equipment, net 228.0 268.1
Intangible assets, net 657.2 639.2
Goodwill, net 1,188.1 1,186.5
Total non-current assets 2,096.0 2,121.3
TOTAL ASSETS 3,157.5  3,377.5
LIABILITIES AND EQUITY    
Bank overdrafts - 0.2
Financial debt – current portion 66.3 58.6
Trade accounts and notes payables 100.5 96.7
Accrued payroll costs 112.8 106.6
Income taxes payable 45.3 56.8
Advance billings to customers 21.6 19.5
Provisions — current portion 20.8 52.7
Other current financial liabilities 18.8 34.4
Other current liabilities 289.1 278.6
Liabilities directly associated with the assets classified as held for sale 7.0 13.0
Total current liabilities 682.2 717.1
Deferred tax liabilities 19.6 16.3
Provisions — non-current portion 45.6 51.8
Financial debt – non-current portion 1,288.5 1,330.3
Other non-current financial liabilities 43.6 53.0
Other non-current liabilities 39.7 44.4
Total non-current liabilities 1,437.0 1,495.8
Common stock: 1,194,005,823 shares authorized and 711,394,241 shares with a €0.01 nominal value outstanding at June 31, 2021 8.7 8.7
Additional paid-in capital 464.1 1,687.1
Retained earnings 611.4 (480.6)
Other Reserves (25.8) (37.3)
Treasury shares (20.1) (20.1)
Cumulative income and expense recognized directly in equity (0.1) (0.7)
Cumulative translation adjustment (43.7) (37.4)
Equity attributable to owners of CGG S.A. 994.5 1,119.7
Non-controlling interests 43.8 44.9
Total equity 1,038.3 1,164.6
TOTAL LIABILITIES AND EQUITY 3,157.5 3,377.5

Unaudited Consolidated statements of cash flows

  Six months ended June 30,
(In millions of US$) 2021 2020
OPERATING    
Net income (loss) (131.6) (245.3)
Less: Net income (loss) from discontinued operations (4.9) 40.0
Net income (loss) from continuing operations (136.5) (205.3)
Depreciation, amortization and impairment 50.2 100.8
Multi-client surveys impairment and amortization 62.3 186.4
Depreciation and amortization capitalized in Multi-client surveys (8.7) (8.4)
Variance on provisions (31.6) 1.2
Share-based compensation expenses (1.2) 2.6
Net (gain) loss on disposal of fixed and financial assets (0.1) 0.1
Equity (income) loss of investees (0.1) (0.1)
Dividends received from investments in companies under the equity method
Other non-cash items 42.0 30.0
Net cash-flow including net cost of financial debt and income tax (23.7) 107.3
Less : net cost of financial debt 67.6 65.7
Less : income tax expense (gain) 12.1 37.6
Net cash-flow excluding net cost of financial debt and income tax 56.0 210.6
Income tax paid (5.6) (1.1)
Net cash-flow before changes in working capital 50.4 209.5
Changes in working capital 108.9 16.7
- change in trade accounts and notes receivable 99.1 77.1
- change in inventories and work-in-progress 4.0 (18.5)
- change in other current assets (2.3) (1.5)
- change in trade accounts and notes payable 1.2 (2.4)
- change in other current liabilities 6.9 (38.0)
Net cash-flow provided by operating activities 159.3  226.2
INVESTING    
Total capital expenditures (including variation of fixed assets suppliers, excluding Multi-client surveys) (25.7)  (36.6)
Investment in Multi-client surveys, net cash (73.5)  (139.9)
Proceeds from disposals of tangible and intangible assets  0.1
Total net proceeds from financial assets (2.4) 0.2
Acquisition of investments, net of cash and cash equivalents acquired (0.4) (0.4)
Variation in loans granted
Variation in subsidies for capital expenditures
Variation in other non-current financial assets 1.3  9.7
Net cash-flow used in investing activities  (100.7)  (166.9)


  Six months ended June 30,
(In millions of US$) 2021 2020
FINANCING    
Repayment of long-term debt (1,227.5)
Total issuance of long-term debt 1,160.3
Lease repayments (29.5) (28.8)
Change in short-term loans (0.2) — 
Financial expenses paid (36.5)  (39.5)
Net proceeds from capital increase:    
— from shareholders
— from non-controlling interests of integrated companies
Dividends paid and share capital reimbursements:    
— to shareholders
— to non-controlling interests of integrated companies (3.6) (7.2) 
Acquisition/disposal from treasury shares — 
Net cash-flow provided by (used in) financing activities (137.0)  (75.5)
Effects of exchange rates on cash (3.3) (7.5)
Impact of changes in consolidation scope
Net cash flows incurred by discontinued operations  (18.5)  (41.1)
Net increase (decrease) in cash and cash equivalents (100.2)  (64.8)
Cash and cash equivalents at beginning of year 385.4  610.5
Cash and cash equivalents at end of period 285.2  545.7

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