Global tech and HPC major, CGG, is expecting its fourth quarter 2022 revenue to reach $321 million. The figure would mean a 48 percent increase on the previous quarter and an 8 percent proforma jump in the corresponding quarter in 2021.
The rise in revenue is driven by strong aftersales, especially in the US Gulf of Mexico and Scandinavia, and higher deliveries of equipment in December 2022.
Through segments, CGG expects its geoscience segment revenue is expected to be around $69 million, stable sequentially and down 22 percent proforma year-on-year with Q4 2021 driven by significant Geovation software sales.
Earth Data segment sales are expected to be around $147 million, up 137 percent sequentially and up 29 percent year-on-year. In particular, after-sales are expected to be around $81 million, up 48 percent year-on-year.
Sensing & Monitoring segment sales are expected to be around $104 million, up 21 percent sequentially and up 11 percent year-on-year due to higher-than-expected deliveries of equipment in December 2022.
For the full year 2022, CGG expects segment revenue to be at around $931 million, up 3 percent proforma year-on-year, and full-year 2022 segment EBITDAs are expected to be above CGG’s guidance updated on November 2, 2022.
The company also anticipates fourth quarter 2022 positive net cash flow of around $61 million, including the sale of US land seismic library, and a full year 2022 Net Cash Flow of around -$4 million.
The Group’s cash liquidity at the end of December 2022 is expected to be around $298 million, excluding $100 million undrawn RCF. The company anticipates year-end 2022 Net Debt (before IFRS 16) to be around $859 million, and Net Debt (after IFRS 16) to be around $951 million.
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