CGG plans further reduction in offshore seismic acquisition fleet

CGG (NYSE:CGG) says it plans to reduce its vessel count from 13 to 11 during 2015.

Offshore staff

PARIS –CGG (NYSE:CGG) says it plans to reduce its vessel count from 13 to 11 during 2015. In addition, it plans a 25% reduction in capex for the year.

“The Transformation Plan we launched at the end of 2013 and accelerated in 2014 has led to a close to 12% reduction in our headcount, the reduction of our fleet from 18 to 13vessels and the lowering of our breakeven point,” said Jean-Georges Malcor, CGG CEO.

“Taking into account the reduced client activity due to the very strong fall in oil prices at year-end and in line with our portfolio rebalancing strategy, we have decided to further reduce our fleet to 11 vessels in 2015 and to launch an additional cost savings and capex reduction plan.”

This came in CGG’s 4Q 2014 and year-end results report. The 4Q 2014 revenue was up 31%. At year end, its group total revenue was $3.095 billion, down 18% from 2013. CGG reports its backlog at $1 billion as of Jan. 1, 2015. As of today,marine fleet coverage is at 92% in 1Q and 57% in 2Q 2015.

02/26/2015

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