CGG Announces 2012 Fourth Quarter and Full Year Results

CGG Announces 2012 Fourth Quarter and Full Year Results 
PARIS, FRANCE -- (Marketwire) -- 02/28/13 --  CGG (ISIN: 0000120164 -
NYSE: CGG) announced today its non-audited fourth quarter 2012 and
full year consolidated results. All comparisons are made on a year-on
-year basis unless stated otherwise. 
Unless  stated  otherwise,  the  fourth  quarter  and full year 2012
results are presented before the $(48) million impact of
non-recurring items(1) related to
the acquisition of the Fugro
Geoscience Division. 
* 2012 Revenue at $3.4 billion, up 7% 
* Operating Income increased by 78% at $365 million, a margin of
11% 
* Net Income at $123 million 
* Positive free cash flow generation at $63 million 


 
                                2012 Key Figures
 
                                      2012            2011*
 
  In million $               BEFORE (2)   AFTER (3)
                           |            |           |
  Revenue                  |   3 411    |   3 411   | 3 181
---------------------------+------------+-----------+-------
  EBITDAs                  |   1 011    |   1 005   |  824
---------------------------+------------+-----------+-------
  Operating Income         |    365     |    329    |  206
---------------------------+------------+-----------+-------
  Equity from Investees    |     37     |    37     |  16
---------------------------+------------+-----------+-------
  EBIT(**)                 |    403     |    367    |  222
---------------------------+------------+-----------+-------
  Net Income               |    123     |    91     | (14)
                           +------------+-----------+-------
  Cash Flow from Operation |    921     |    921    |  790
---------------------------+------------+-----------+-------
  Free Cash Flow           |     63     |    63     |  94
                           +------------+-----------+-------

 
*Restated figures **EBIT=Operating Income + Equity from Investees
contribution
to Net Income 
CGG CEO, Jean-Georges Malcor commented: 
"In  2012, CGG reported a  solid performance, with  revenues up 7%
and operating
income up 78%, in line with our objectives of growth and
profitability. 
The   initiatives  launched  in  2010 as  part  of  our  Performance 
Plan have
particularly delivered in 2012. The marine operational
performance improved with
high  availability and production  rates
while the  commercial and technological
successes  of BroadSeis,
StagSeis and Sentinel RD were confirmed reinforcing our leadership 
in high-end seismic  technology. As announced  also in the Plan, the
Group  achieved  an  ambitious  cost  monitoring  program  and
reduced the G&A's
expenses. 
In  a  recovering  market  and  fuelled  by  the positive impact of
our plans we achieved  a Group operating margin of 11%. Sercel
delivered a high profitability
despite  a  moderate  market  growth 
particularly  in  marine.  Land and Marine
contracts  divisions were
back to profit and our Processing, Imaging & Reservoir
division 
increased  significantly  its  top  line  and  achieved  an
excellent
operational  performance. As  announced early  January,
multi-client 
after-sales were  lower than expected due in particular to the delay
of the licensing rounds in  Brazil.  Finally,  the  acquisition 
completed  in  just  four months of the Geoscience  division of Fugro
and the  closing of the Seabed Geosolutions Joint-Venture  diversify 
and  strengthen  our  business  profile  towards Geology and
Reservoir and represents a significant step forward in the
transformation of our Group into a fully integrated Geosciences
company. 
The growing needs of our clients for exploration in always more
complex geology,
for conventional and unconventional reservoir
characterization and more broadly
for Geoscience solutions are 
strong indicators of  a promising 2013 market and
beyond. 
In  this context and with a stronger portfolio of businesses, we will
accelerate
CGG's  transformation in 2013, to  become the partner  of
choice for our clients
with  our new assets  and technologies base 
while actively managing our balance
sheet. 
The  CGG  Group,  ideally  positioned  on  three  pillar  divisions,
Equipment,
Acquisition,  and  GGR  (Geology,  Geophysics  &
Reservoir), will accelerate its profitability in 2013 through
revenues increase of nearly 25% year on year." 
(1) These $48 million include $18 million of fees related to the
operation and
its financing and $30 million of impairment of goodwill
linked to the brand Veritas. 
(2) Before the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
(3) After the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
Fourth Quarter 2012 Results: 
* Group revenue was $938 million, up 4% compared to fourth quarter
2011 and up     10% sequentially. 
* Group operating income was $113 million, up 61% and stable
sequentially. 
Group margin was 12%: 
* Sercel operating income was $81 million, a margin of 28%. 
* Strong improvement in Services operating income at $58
million with a 
8% margin. The excellent operational
performance of Processing, Imaging 
& Reservoir activity and
the good operational efficiency of the Marine 
contract
activity offset the low level of multi-client after-sales. 
* The contribution from equity investees was $11 million. This is
mainly due 
to the strong performance of Argas. 
* Earnings Before Interest Tax Depreciation and Amortization
(EBITDAs) was 
$294 million, up 8% year-on-year and up 6%
sequentially. 
* Earnings Before Interest & Tax (EBIT) was $124 million compared
to $77     million in the fourth quarter 2011. The EBIT margin was
13%. 
* Before the net impact of non-recurring items, Net Income was a
gain of $45 
million compared to a gain of $20 million in the
fourth quarter 2011. It was     a gain of $13 million after the net
impact of non-recurring items. 
* Cash flow from operations was $454 million, up 43% year-on-year. 
* Industrial Capex (including $8 million R&D capex) represented $79
million 
this quarter, down 30% year-on-year. 
* Multi-Client Cash Capex reached $81 million with 24% of the fleet
being     dedicated to multi-client programs. 
* After capital expenditure and financial costs, free cash flow was
positive 
at $238 million, up 133% year-on-year. 
* Backlog was at $1.240 billion at the end of December 2012; in
Services at 
$1.080 billion and in Sercel at $160 million. 


                           |          2012          |
                           |            |           |
  In million $             | BEFORE (2) | AFTER (3) | 2011*
---------------------------+------------+-----------+-------
  Revenue                  |    938     |    938    |  905
---------------------------+------------+-----------+-------
  EBITDAs                  |    294     |    287    |  272
---------------------------+------------+-----------+-------
  Operating Income         |     113    |    76     |  70
---------------------------+------------+-----------+-------
  Equity from Investees    |     11     |    11     |   7
---------------------------+------------+-----------+-------
  EBIT(**)                 |    124     |    88     |  77
---------------------------+------------+-----------+-------
  Net Income               |     45     |    13     |  20
                           +------------+-----------+-------
  Cash Flow from Operation |    454     |    454    |  317
---------------------------+------------+-----------+-------
  Free Cash Flow           |    238     |    238    |  102
                           +------------+-----------+-------

 
*Restated figures **EBIT=Operating Income + Equity from Investees
contribution
to Net Income 
Full Year 2012 Results: 
* Group revenue was $3.4 billion, up 7% year-on-year as well as in 
Services 
and up 5% in Sercel. 
* Group operating income was $365 million. Group operating margin
was 11%: 
* Sercel operating income was $380 million, a 32% margin,
driven by high 
level of land equipment sales in 2012. 
* Services operating income increased significantly to $131
million, a 5%         margin, due to operational efficiency
improvement of our vessels, marine 
price increase in the
second half of the year and excellent operational 
performance
of the Processing, Imaging & Reservoir activity. 
* The contribution from equity investees was at $37 million, a
record     performance. This is mainly due to the strong performance
of Argas. 
* Earnings Before Interest Tax Depreciation and Amortization
(EBITDAs) was 
$1.011 billion, up 23% year-on-year. 
* Earnings Before Interest & Tax (EBIT) was $403 million compared
to $222     million and the EBIT margin was 12%. 
* Before the net impact of non-recurring items, Net Income was $123
million 
compared to a loss of $14 million in 2011. It was $91
million after the net 
impact of non-recurring items. 
* Cash flow from operations was $921 million, up 17% year-on-year. 
* Industrial Capex (including $29 million R&D capex) represented
$374 million, 
down 6% year-on-year. 
* Multi-Client Cash Capex reached $364 million, up 79%
year-on-year. 
* After capital expenditure and financial costs, free cash flow was
positive 
at $63 million, down 33% year-on-year. 
Post-closing
Events : 
* Finalization of the acquisition of Fugro Geoscience Division
which joins the     Group CGG on the 31st of January 2013 and creation
of the Seabed     Geosolutions Joint-Venture. The net cost of the
transaction amounts to EUR975 
million. $18 million of
non-recurring fees related to this operation and its     financing
were recorded in 2012. 
* On January 28th, CGGVeritas changed its brand name to CGG leading
to a $30 
million of impairment of goodwill linked to the brand
Veritas. 
* On February 21st, CGG sold on the OSE its remaining 10% stake
within     Spectrum. 
2013 Outlook : 
With Exploration and Production spending expected to increase high
single digit,
sustained by new frontier areas exploration in complex
geology, market conditions should remain favorable. 
Market  demand for seismic data is changing as clients are looking at
geoscience
data in new ways and expect higher technological content
as well as more precise
information. Clients want to optimize field
appraisal, extract very early in the cycle  detailed reservoir
properties to be  able to predict stress and fractures
to ensure safe
and predictable drilling and completion operations. 
Geology,  Geophysics  and  Reservoirs  our  new  and strengthened
businesses are becoming more crucial in our client organizations. 
Overall  demand  for  seismic  and  more  globally for geoscience is
expected to remain  solid driven  by exploration  of new  frontiers
areas  such Barents Sea,
Arctic,  Angola,  Gulf  of  Bengal  and 
East Africa. and tendering activity for marine  contracts is
increasing. High licensing  round activity is also expected
in  2013
across  the  globe  including  recent  Brazil  announcement for May
and November. 
* In Equipment after years of strong growth, market is stabilizing.
Land is 
still driven by the launch of new high channel counts mega
crews. Marine 
will benefit from an active replacement market
offsetting the limited     increase in marine supply. 
* The Marine acquisition market remains solid with increasing
demand for     Broadband technologies and the increase in 3D high-end
marine supply is     limited and predictable. 
* In Land acquisition the split is accelerating between a low end
commodity 
market and a high-end long term seismic added-value
business more oriented 
towards complex exploration and reservoir
optimization. 
* Geology, Geophysics and Reservoir markets are growing driven by
higher     volume of data acquired, increasing resolution, better
technological content 
and sophisticated algorithms to better
understand and characterize complex 
geologies. This should drive
more reservoir services and solutions as well 
as more intelligent
data storage. 
* Multi-client will be driven by new frontiers exploration and high
licensing 
activity, especially in Brazil where new licensing
rounds have just been 
announced. 
Delivering the Transformation
of the new CGG 
In  2013 to  reinforce  its  growth  and  create  value both for its
clients and shareholders,  CGG  will  focus  on  the  three 
following  strategic  axes for
delivering its transformation: 
Building the new CGG 
* With a new organization in place and an Integration Plan on
tracks, the new 
CGG should be fully operational by the end of the
first semester.     Operational performance especially in HSE and a
strong focus on cost base 
remain key priorities. 
* To improve visibility of the financial performance, to improve
the     understanding of our new business segments and to further
externalize value, 
CGG will report at the three divisions level
and at the EBIT level and as 
soon as Q1 2013. 
Being the partner of choice 
* In 2013, CGG will further accelerate the development of new
products, new 
solutions and technologies across all its business
segments. In particular, 
Sercel will this year further strengthen
its R&D efforts to launch the next 
generation of products and
confirm the Group technological leadership. 
* Focused on high-end solutions, services and products, CGG wants
to become 
the partner of choice for its clients and further
develop strategic     partnerships to extend its local presence and
portfolio of activities in new     country or new markets with high
growth potential. 
Increasing Return on Capital Employed 
* This transformation will be conducted with the objective of
managing the 
portfolio of assets and businesses of the Group to
optimize the capital     employed and their return. 
* A strong focus will be put on the cash generation, on the
reduction of the 
cost of debt and on the appropriate financial
leverage. 
The deployment in 2013 of these strategic actions should allow CGG
to: 
* Accelerate its growth with a wider portfolio of integrated
activities and 
reinforced high-end expertise in key regions and
markets. 
* Create value for its shareholders through a better valuation of
the three 
business segments and a streamlined financial profile. 
* Create value for its clients and employees by continuing to
operate safely 
and with integrity around the world to deliver a
socially responsible and 
sustainable performance. 
In  this context,  and with  multi-clients cash  capex in  the range
of 350-400
million  with a prefunding rate  above 75% and industrial
capex  in the range of $350-400 million, CGG is well positioned to
achieve its 2013 objectives: 
* Revenue increase of 25% 
* Improved EBIT margin 
* Improved Return on Capital Employed 


 
Fourth Quarter 2012 Financial Results
 
Fourth Quarter 2012 Key Figures
 
                        Third Quarter     Fourth Quarter     Fourth Quarter
                            2012               2012              2011*
 
 In million $                         BEFORE (1)  AFTER (2)
                       |             |          |           |
 Group Revenue         |     855     |   938    |    938    |     905
-----------------------+-------------+----------+-----------+--------------
    Sercel             |     283     |   288    |    288    |     326
-----------------------+-------------+----------+-----------+--------------
    Services           |     634     |    692   |        692|     632
-----------------------+-------------+----------+-----------+--------------
 Group Operating Income|     114     |   113    |    76     |      70
-----------------------+-------------+----------+-----------+--------------
    Margin             |     13%     |   12%    |    8%     |      8%
-----------------------+-------------+----------+-----------+--------------
    Sercel             |     93      |    81    |    81     |      97
-----------------------+-------------+----------+-----------+--------------
    Margin             |     33%     |   28%    |    28%    |     30%
-----------------------+-------------+----------+-----------+--------------
    Services           |     62      |    58    |    58     |      11
-----------------------+-------------+----------+-----------+--------------
    Margin             |     10%     |    8%    |    8%     |      2%
-----------------------+-------------+----------+-----------+--------------
 Equity from Investees |     13      |    11    |    11     |      7
-----------------------+-------------+----------+-----------+--------------
 EBIT**                |     127     |   124    |    88     |      77
-----------------------+-------------+----------+-----------+--------------
 Net Income            |     48      |    45    |    13     |      20
-----------------------+-------------+----------+-----------+--------------
    Margin             |     6%      |    5%    |    1%     |      2%
                       +-------------+----------+-----------+--------------
 
Revenue
 
Group  Revenue was  up 4% year-on-year  and up  10% sequentially. Revenue
was up 10% in Services and down 11% in Sercel year-on-year.
 
                    Third Quarter   Fourth Quarter
 
  In million $          2012        2012    2011*
                  |               |      |
  Group Revenue   |      855      | 938  |   905
------------------+---------------+------+----------
     Sercel       |      283      | 288  |   326
------------------+---------------+------+----------
     Services     |      634      | 692  |   632
------------------+---------------+------+----------
  Eliminations    |     (62)      | (43) |  (53)
------------------+---------------+------+----------
  Marine contract |      257      | 275  |   245
------------------+---------------+------+----------
  Land contract   |      138      | 126  |   64
------------------+---------------+------+----------
  Processing      |      123      | 136  |   124
------------------+---------------+------+----------
  Multi-client    |      117      | 155  |   199
------------------+---------------+------+----------
      MC marine   |      52       | 138  |   160
------------------+---------------+------+----------
      MC land     |      64       |  17  |   40
------------------+---------------+------+----------

 
*Restated figures **EBIT=Operating Income + Equity from Investees
contribution
to Net Income 
(1) Before the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
(2) After the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
Sercel 
Total   revenue   was  down  11% year-on-year  and  up  2%
sequentially. Sercel
particularly  benefited  from  a  high  level  of
land equipment deliveries this
quarter. Internal sales were at $43
million representing 15% of total sales. 
Services 
Revenue  was  up  10% year-on-year  and  up  9% sequentially.  The
strong marine
operational  performance,  a  more  favorable 
seasonality  in land and a record
activity  in Processing, Imaging &
Reservoir  offset a lower than expected level
of multi-client sales. 
* Marine contract revenue was up 12% year-on-year and up 7%
sequentially. This 
quarter was characterized by continued
improvement in our marine operating 
performance with our vessel
availability and production rate2 respectively 
at 93% and 89%. On
average 4 vessels worked on multi-client projects during 
the
quarter. By the beginning of Q4, all our 3D vessels operating in the 
North Sea left the area. Ten vessels operated on contract
including two     vessels in the Black Sea, one in West Africa, three
in Asia Pacific and four 
in North and Latin America. 
* Land contract revenue was up 97% year-on-year compared to a very
low     quarter last year and was down 8% sequentially. This quarter
20 crews were 
on operation, including 9 in North America. Our
operations in North Africa 
were slowed down and on stand-by
temporary and should resume as soon as     safety conditions will be
restored. Our crew in Oman received HSE gold award 
from PDO for
outstanding HSE performance. 
* Processing, Imaging & Reservoir revenue was up 10% year-on-year
and reached 
a record performance of $136 million, up 11%
sequentially thanks to a strong 
order intake and an effective
alignment of operations in the main processing 
centers but also
in the smaller ones. Thanks to a good management of the 
operating
expenses, Processing, Imaging and Reservoir achieved a high    
profitability level this quarter. 
* Multi-client revenue was down 22% year-on-year and up 33%
sequentially. The 
prefunding revenue increased to $87 million this
quarter, due to the     catching-up of some clients' formal
commitments which had been postponed 
during several quarters.
Prefunding rate reached 108% this quarter, a high 
level mainly
due to the prefunding of Petrobras for our survey located in 
the
North of Santos basin. This quarter, the after-sales revenues were
lower 
than expected, down to $68 million. This is particularly
due to the     Brazilian marine after-sales market where significant
sales projects could 
not be finalized in 2012 as uncertainties
remained on the future blocks that 
will be part of the next
licensing round in 2013. With a depreciation rate 
averaging 66%,
this quarter, the Net Book Value at the end of December 2012 
totaled $604 million compared to $613 million at the end of September
2012. 
* Marine multi-client was down 13% year-on-year at $138
million.         Prefunding revenue was $81 million and after-sales
were $57 million. 
Capex was $74 million and was concentrated
on Gulf of Mexico with the 
IBALT program and offshore Angola.
Prefunding rate was 111% this         quarter. With a depreciation
rate at 64% this quarter, the Net Book         Value at the end of
December 2012 stood at $474 million. 
* Land multi-client was down 58% year-on-year at $17 million.
Prefunding 
revenue was $5 million and after-sales were $11
million. Capex was $7 
million and was dedicated to the
continuation of our Marcellus program. 
Prefunding rate was
75% this quarter with a depreciation rate at 85%, 
the Net
Book Value at the end of December 2012 stood at $130 million. 
Group  EBITDAs  was  $294  million,  up  8% year-on-year and up 6%
sequentially.
EBITDAs margin was 31%. 


                    Third Quarter      Fourth Quarter       Fourth Quarter
                        2012                2012                2011*
 
  In million $                      BEFORE(1)   AFTER (2)
                  |               |           |           |
  Group EBITDAs   |      278      |    294    |    287    |      272
------------------+---------------+-----------+-----------+----------------
     Margin       |      32%      |    31%    |    31%    |      30%
------------------+---------------+-----------+-----------+----------------
     Sercel       |      105      |     93    |    93     |      110
------------------+---------------+-----------+-----------+----------------
    Margin        |      37%      |    32%    |    32%    |      34%
------------------+---------------+-----------+-----------+----------------
     Services     |      210      |    224    |    224    |      199
------------------+---------------+-----------+-----------+----------------
    Margin        |      33%      |    32%    |    32%    |      31%
                  +---------------+-----------+-----------+----------------

 
Before  the  impact  of  non-recurring  items,  Group  Operating
Income was $113
million, up 61% year-on-year and stable sequentially.
Group Operating margin was
12%. 


 
                       |Third Quarter|   Fourth Quarter   |Fourth Quarter
                       |    2012     |        2012        |    2011*
                       |             |          |         |
 In million  $         |             |BEFORE (1)|AFTER (2)|
-----------------------+-------------+----------+---------+--------------
 Group Operating Income|     114     |   113    |   76    |      70
-----------------------+-------------+----------+---------+--------------
    Margin             |     13%     |   12%    |   8%    |      8%
-----------------------+-------------+----------+---------+--------------
    Sercel             |     93      |    81    |   81    |      97
-----------------------+-------------+----------+---------+--------------
   Margin              |     33%     |   28%    |   28%   |     30%
-----------------------+-------------+----------+---------+--------------
    Services           |     62      |    58    |   58    |      11
-----------------------+-------------+----------+---------+--------------
   Margin              |     10%     |    8%    |   8%    |      2%
                       +-------------+----------+---------+--------------

 
Income  from Equity Investments  was $11 million  compared to $7 
million in the fourth quarter 2011, mainly related to Argas. 
EBIT (Operating Income + Equity Investments contribution to net
income) was $124
million,  up 61% year-on-year. After the impact of
non-recurring items, EBIT was $88 million. 
Financial Charges were $50 million: 
* Cost of Debt was $41 million, while the total amount of interest
paid during 
the quarter was $57 million. 
* Other financial items were negative at $9 million due to the
unfavorable 
impact of currency variations. 
*Restated figures **EBIT=Operating Income + Equity from Investees
contribution
to Net Income 
(1) Before the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
(2) After the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
Taxes were $29 million. 


                              Fourth Quarter  2012
 
  In million $               BEFORE (1)   AFTER (2)
                           |            |
  Financial charges        |     50     |    62
---------------------------+------------+-----------
     Cost of the debt      |     41     |    41
---------------------------+------------+-----------
     Other Financial Items |     9      |    21
---------------------------+------------+-----------
  Taxes                    |     29     |    12
                           +------------+-----------

 
Before  the impact  of non-recurring  items, Group  Net Income  was
$45 million,
compared to $20 million in the fourth quarter 2011. 
After  the impact  of non-recurring  items, Group  Net Income  was a
gain of $13 million. 
Before  the  impact  of  non-recurring  items  and  after the impact
of minority
interests of $4 million/EUR3 million, Net Income
attributable to the owners of CGG was at $40 million/EUR31 million.
EPS was positive at EUR0.18 per ordinary share and positive at $0.24
per ADS. 
After  the  impact  of  non-recurring  items  and  of  minority 
interests of $4 million/EUR3  million, Net Income attributable to the 
owners of CGG was a gain of $9 million/EUR7 million. EPS was positive
at EUR0.04 per ordinary share and negative
at $0.05 per ADS. 
Cash-Flow 
Cash-Flow  from operations was at  $454 million compared to  $317
million in the fourth quarter 2011. 
Global Capex was $160 million this quarter, down 3% year-on-year. 
* Industrial capex was $71 million this quarter, down 35%
year-on-year. 
* Research & Development capex was $8 million. 
* Multi-client cash capex was $81 million, up 55% year-on-year,
with a     prefunding rate at 108% this quarter. 


 
                        Third Quarter   Fourth Quarter
 
  In million $              2012        2012    2011*
                      |               |
  Capex               |      196      | 160      166
----------------------+---------------+----------------
  Industrial          |      63       |  71      109
----------------------+---------------+----------------
  R&D capex           |       7       |  8        5
----------------------+---------------+----------------
  Multi-client Cash   |      126      |  81      52
                      |               |
         Marine MC    |      87       |  74      29
                      |               |
         Land MC      |      39       |  7       23
----------------------+---------------+----------------

 
*Restated figures **EBIT=Operating Income + Equity from Investees
contribution
to Net Income 
(1) Before the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
(2) After the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
Free Cash Flow 
After  interests expenses paid during the quarter  and Capex, free
cash flow was positive  at $238 million compared to a  positive free
cash flow of $102 million
in the fourth quarter 2011. 


 
Fourth Quarter 2012 Comparisons with Fourth Quarter 2011
 
 Consolidated Income      |Third Quarter|  Fourth Quarter  |Fourth Quarter
 Statement                |    2012     |       2012       |2011*
--------------------------+-------------+---------+--------+---------------
 In million $             |             |BEFORE(1)|AFTER(2)|
--------------------------+-------------+---------+--------+---------------
 Exchange rate euro/dollar|    1.249    |  1.297  | 1.297  |    1.364
--------------------------+-------------+---------+--------+---------------
 Operating Revenue        |    855.0    |  937.9  | 937.9  |    904.9
--------------------------+-------------+---------+--------+---------------
                    Sercel|    282.9    |  288.4  | 288.4  |    325.6
--------------------------+-------------+---------+--------+---------------
                  Services|    633.9    |  692.4  | 692.4  |    632.1
--------------------------+-------------+---------+--------+---------------
               Elimination|   (61.8)    | (43.0)  | (43.0) |    (52.8)
--------------------------+-------------+---------+--------+---------------
 Gross Profit             |    195.1    |  217.2  | 217.2  |    176.2
--------------------------+-------------+---------+--------+---------------
 Operating Income         |    114.3    |  112.7  |  76.4  |     69.9
--------------------------+-------------+---------+--------+---------------
                    Sercel|    92.5     |  80.7   |  80.7  |     97.2
--------------------------+-------------+---------+--------+---------------
                  Services|    61.6     |  57.8   |  57.8  |     10.8
--------------------------+-------------+---------+--------+---------------
 Corporate and Elimination|   (39.8)    | (25.8)  | (62.1) |    (38.1)
--------------------------+-------------+---------+--------+---------------
 Net Financial Costs      |   (38.3)    | (50.2)  | (62.2) |    (27.7)
--------------------------+-------------+---------+--------+---------------
 Income Tax               |   (41.0)    | (28.9)  | (11.8) |    (25.5)
--------------------------+-------------+---------+--------+---------------
 Deferred Tax on Currency |     0.2     |  (0.2)  | (0.2)  |    (3.2)
 Translation              |             |         |        |
--------------------------+-------------+---------+--------+---------------
 Income from Equity       |    12.6     |  11.1   |  11.1  |     6.9
 Investments              |             |         |        |
--------------------------+-------------+---------+--------+---------------
 EBIT                     |    126.9    |  123.9  |  87.6  |     76.8
--------------------------+-------------+---------+--------+---------------
 Net Income               |    47.8     |  44.5   |  13.3  |     20.4
--------------------------+-------------+---------+--------+---------------
 Earnings per share in EUR|    0.23     |  0.18   |  0.04  |     0.08
--------------------------+-------------+---------+--------+---------------
 Earnings per share in $  |    0.29     |  0.24   |  0.05  |     0.10
--------------------------+-------------+---------+--------+---------------
 EBITDAs                  |    277.5    |  293.5  | 287.2  |    271.7
--------------------------+-------------+---------+--------+---------------
                    Sercel|    104.6    |  92.5   |  92.5  |    110.0
--------------------------+-------------+---------+--------+---------------
                  Services|    210.1    |  224.1  | 224.1  |    198.6
--------------------------+-------------+---------+--------+---------------
Industrial  Capex         |             |         |        |
(including R&D capex)     |    70.1     |  79.2   |  79.2  |    113.6
--------------------------+-------------+---------+--------+---------------
 Multi-client Cash Capex  |    125.7    |  80.7   |  80.7  |     52.0
--------------------------+-------------+---------+--------+---------------

 
*Restated figures **EBIT=Operating Income + Equity from Investees
contribution
to Net Income 
(1) Before the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
(2) After the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
2012 Financial Results 
Group Revenue 
Group  revenue was $3.4 billion up  7% year-on-year. Services revenue
was up 7% and Sercel revenue was up 5%. 


 
                      Full Year
 
  In million  $     2012    2011*
                  |
  Group           | 3 411   3 181
------------------+----------------
     Sercel       | 1 204   1 142
------------------+----------------
     Services     | 2 457   2 289
------------------+----------------
  Eliminations    | (251)   (251)
------------------+----------------
  Marine contract | 1 009    977
------------------+----------------
  Land contract   |  498     373
------------------+----------------
  Processing      |  478     443
------------------+----------------
  Multi-client    |  472     497
------------------+----------------
      Marine MC   |  329     365
------------------+----------------
      Land MC     |  143     132
------------------+----------------

 
Sercel 
Sercel  sales were  up 5% year-on-year,  driven by  high level of land
equipment
sales,  up  14% year-on-year.  The  integration  of  GRC
reached its objectives.
Internal sales represented 21% of total
sales. 
Services 
Revenue  was up 7% year-on-year due to a better fleet operational
performance, a sustained  activity in Processing and Reservoir  and
an increase in multi-client revenue in line with the increase in
multi-client cash capex. 
Group EBITDAs was $1.011 billion, up 23% year-on-year with a 30%
margin. 


 
                        Full Year         Full Year
                          2012              2011*
 
  In million $    BEFORE(1)   AFTER (2)
                |           |           |
  Group EBITDAs |   1 011   |   1 005   |    824
----------------+-----------+-----------+-----------
     Margin     |    30%    |    29%    |    26%
----------------+-----------+-----------+-----------
     Sercel     |    427    |    427    |    408
----------------+-----------+-----------+-----------
    Margin      |    35%    |    35%    |    36%
----------------+-----------+-----------+-----------
     Services   |    721    |    721    |    567
----------------+-----------+-----------+-----------
    Margin      |    29%    |    29%    |    25%
                +-----------+-----------+-----------

 
*Restated figures 
(1) Before the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
(2) After the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
Before  the  impact  of 
non-recurring  items,  Group  Operating Income was $365
million, up
78% year-on-year. Operating margin was 11%. 
* Sercel operating income was $380 million, a 32% margin, driven by
high level 
of land equipment sales in 2012. 
* Services operating income increased significantly to $131
million, a 5%     margin due to operational efficiency improvement of
our vessels, marine     price increase in the second half of the year
and excellent operational     performance of the Processing, Imaging
& Reservoir activity. In 2012, the 
depreciation rate of our
multi-client data library averaged 72% with 86% in     land and 66%
in marine. 


 
                                 Full Year         Full Year
                                   2012              2011*
 
  In million $             BEFORE(1)   AFTER (2)
                         |           |           |
  Group Operating Income |    365    |    329    |    206
-------------------------+-----------+-----------+-----------
     Margin              |    11%    |    10%    |    6%
-------------------------+-----------+-----------+-----------
     Sercel              |    380    |    380    |    354
-------------------------+-----------+-----------+-----------
    Margin               |    32%    |    32%    |    31%
-------------------------+-----------+-----------+-----------
     Services            |    131    |    131    |     9
-------------------------+-----------+-----------+-----------
    Margin               |    5%     |    5%     |    0%
                         +-----------+-----------+-----------

 
Income  from  Equity  Investments  was  at  $37  million,  a record
performance,
compared to $16 million in 2011. This performance was
mainly related to Argas. 
EBIT (Operating Income + Equity Investments contribution to net
income) was $403
million,  up 82% year-on-year. After the impact of
non-recurring items, EBIT was $367 million. 
Financial charges were $164 million: 
* Cost of debt was $157 million, while the total amount of interest
paid     during the year was $125 million. 
* Other financial items were negative at $8 million due to the
unfavorable 
impact of currency variations. 
Taxes were $116 million. 


 
                                      2012
 
  In million $               BEFORE (1)   AFTER (2)
                           |            |
  Financial charges        |    164     |    176
---------------------------+------------+-----------
     Cost of debt          |    157     |    157
---------------------------+------------+-----------
     Other financial items |     8      |    20
---------------------------+------------+-----------
 
---------------------------+------------+-----------
  Taxes                    |    116     |    99
                           +------------+-----------

 
*Restated figures 
(1) Before the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
(2) After the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
Before  the impact of non-recurring items, Group Net Income was at
$123 million,
compared to a loss of $14 million in 2011. 
After the impact of non-recurring items, Group Net Income was at $91
million. 
Before  the  impact  of  non-recurring  items  and  after the impact
of minority
interests  of $17 million/EUR13 million, Net  Income
attributable to the owners of CGG  was at  $105 million/EUR81 
million. EPS  was positive  at EUR0.50 per ordinary
share and
positive at $0.65 per ADS. 
After  the  impact  of  non-recurring  items  and  of  minority
interests of $17 million/EUR13  million, Net Income  attributable to
the  owners of CGG  was at $74 million/EUR58  million. EPS was
positive at  EUR0.36 per ordinary share and positive
at $0.46 per
ADS. 
Cash-Flow 
Cash Flow from Operations was $921 million, up 17% year-on-year. 
Capex 
Global Capex was $737 million, up 23% year-on-year. 
* Industrial Capex was $345 million, down 8% year-on-year. 
* Research & Development capex was $29 million, up 27%. 
* Multi-client Cash Capex was $364 million, up 79% with a
prefunding rate of 
72% in 2012 and slightly superior to our
objective. Marine multi-client cash 
prefunding rate was 62% and
land multi-client cash prefunding rate was
96%. 


 
                         Full Year
 
  In million $          2012   2011*
                      |
  Capex               | 737     600
----------------------+--------------
   Industrial         | 345     374
----------------------+--------------
   R&D                |  29     23
----------------------+--------------
  Multi-client Cash   | 364     203
                      |
          Marine MC   | 252     78
                      |
          Land MC     | 112     125
----------------------+--------------

 
*Restated figures 
Free Cash Flow 
After interests expenses paid during the quarter and Capex, free cash
flow was
positive at $63 million down 33% year-on-year. 
Balance Sheet 
Net Debt to Equity Ratio: 
After  the issuance of the convertible  bond last November, to
partially finance
the  acquisition  of  Fugro  Geoscience  Division, 
Group  gross debt was $2.305
billion at the end of December 2012. 
With $1.520 billion in available cash, including $993 million from
the financing
of  the Fugro transaction  ($524 million related  to the
right  issue in October
2012 and  $469 million  related to  the
convertible  bond in November 2012), net debt was $785 million at the
end of December 2012, compared to $1.411 billion at the  end of
December 2011. Net debt to equity ratio at the end of December
2012
was 17%. 
Not including the impact of the Fugro transaction financing, net debt
would have
amounted to $1.410 billion at the end of December 2012 with
a net debt to equity
ratio of 36%, stable year-on-year. 
On  a  pro-forma  basis,  including  all  the  elements  related  to 
the Fugro
transaction, in particular the EUR975 million net cost of
transaction before fees, the  pro-forma Group net debt at the  end of
2012 would have been $2.105 billion
for a net debt to equity ratio at
47%. 


 In million $                                                   2012  2011
                                                              |      |
 Net Debt                                                     | 785  |1 411
--------------------------------------------------------------+------+-----
 Net debt to equity ratio                                     | 17%  | 37%
--------------------------------------------------------------+------+-----
 Net Debt / EBITDAs ratio                                     | 0.8  | 1.7
--------------------------------------------------------------+------+-----
 Net Debt (without the financing of the acquisition of Fugro  | 1 410|1 411
 Geoscience Division)                                         |      |
--------------------------------------------------------------+------+-----
 Net debt to equity ratio                                     | 36%  | 37%
--------------------------------------------------------------+------+-----
 Net Debt / EBITDAs ratio                                     | 1.4  | 1.7
--------------------------------------------------------------+------+-----
 Pro-forma 2012 Net Debt                                      |2 105 |1 411
--------------------------------------------------------------+------+-----
 Net debt to equity ratio                                     | 47%  | 37%
                                                              +------+-----
 
2012 Comparisons with 2011
 
 Consolidated Income Statements        |         YTD          |  YTD
                                       |                      |
                                       |         2012         | 2011*
                                       |           |          |
 In million $                          |BEFORE(1)  |AFTER(2)  |
---------------------------------------+-----------+----------+---------
 Exchange rate euro/dollar             |   1.290   |  1.290   | 1.403
                                       +-----------+----------+--------
 Operating Revenue                     |  3 410.5  | 3 410.5  |3 180.9
---------------------------------------+-----------+----------+--------
                                 Sercel|  1 204.3  | 1 204.3  |1 142.0
---------------------------------------+-----------+----------+--------
                               Services|  2 456.8  | 2 456.8  |2 289.5
---------------------------------------+-----------+----------+--------
                            Elimination|  (250.6)  | (250.6)  |(250.6)
---------------------------------------+-----------+----------+--------
 Gross Margin                          |   728.7   |  728.7   | 534.8
---------------------------------------+-----------+----------+--------
 Operating Income                      |   365.4   |  329.1   | 205.5
---------------------------------------+-----------+----------+--------
                                 Sercel|   380.4   |  380.4   | 354.0
---------------------------------------+-----------+----------+--------
                               Services|   131.0   |  131.0   |  8.5
---------------------------------------+-----------+----------+--------
             Corporate and Eliminiation|  (146.0)  | (182.3)  |(157.0)
---------------------------------------+-----------+----------+--------
 Net Financial Costs                   |  (164.4)  | (176.4)  |(173.7)
---------------------------------------+-----------+----------+--------
 Income Taxes                          |  (115.8)  |  (98.7)  |(57.9)
---------------------------------------+-----------+----------+--------
 Deferred Tax on Currency Translation  |    0.0    |   0.0    | (4.6)
---------------------------------------+-----------+----------+--------
 Equity from Investments               |   37.4    |   37.4   | 16.4
---------------------------------------+-----------+----------+--------
 EBIT                                  |   402.9   |  366.6   | 221.9
---------------------------------------+-----------+----------+--------
 Net Income                            |   122.6   |   91.4   |(14.3)
---------------------------------------+-----------+----------+--------
 Earnings per share in EUR             |   0.50    |   0.36   |(0.13)
---------------------------------------+-----------+----------+--------
 Earnings per share in $               |   0.65    |   0.46   |(0.18)
---------------------------------------+-----------+----------+--------
 EBITDAs                               |  1 011.0  | 1 004.7  | 824.4
---------------------------------------+-----------+----------+--------
                                 Sercel|   426.5   |  426.5   | 407.6
---------------------------------------+-----------+----------+--------
                               Services|   721.0   |  721.0   | 567.1
---------------------------------------+-----------+----------+--------
 Industrial Capex (including R&D capex)|   373.5   |  373.5   | 396.8
---------------------------------------+-----------+----------+--------
 Multi-client Cash Capex               |   363.8   |  363.8   | 203.2
---------------------------------------+-----------+----------+--------

 
*Restated figures 
(1) Before the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
(2) After the impact of non-recurring items related to the
acquisition of Fugro
Geoscience Division 
Other Information 
* Jean-Georges Malcor, CEO, will comment on the results today,
February     28, 2013 during a public presentation at 9:30 AM - at the
Academie     Diplomatique Internationale - 4 bis avenue Hoche - PARIS
8eme. 
* An English language conference call is scheduled today February
28, 2013 at     3:00 PM (Paris time) - 2:00 PM (London time) - 8:00 AM
(US CT) - 9:00 AM (US     ET). 
To take part in the English language conference, simply dial five to
ten minutes
prior to the scheduled start time. 
- US Toll-Free            1-877-317-6789 
- International call-in   1-412-317-6789 
- Replay                  1-877-344-7529 & 1-412-317-0088 
Conference number: 10024646 
You will be connected to the conference: "CGG Q4 & Full Year 2012
results". 
* Copies of the presentation are posted on the Company website
www.cgg.com and     can be downloaded. 
* The conference call will be broadcast live on the CGG website
www.cgg.com 
and a replay will be available for two weeks
thereafter. 
About CGG: 
CGG  (www.cgg.com) is  a fully  integrated Geoscience  company
providing leading
geological,  geophysical  and  reservoir 
capabilities  to  its  broad base  of customers  primarily from  the
global  oil and  gas industry.  Through its three
complementary  
business   divisions  of  Equipment,  Acquisition  and
Geology,
Geophysics  & Reservoir  (GGR), CGG  brings value  across
all aspects of natural
resource exploration and exploitation. CGG 
employs 10,000 people around  the world, all  with a Passion for
Geoscience
and working together to deliver the best solutions to its
customers. CGG is listed on the Euronext Paris SA (ISIN: 0000120164)
and the New York Stock
Exchange (in the form of American Depositary
Shares. NYSE: CGG). 
The  information  included  herein  contains 
certain forward-looking statements
within the meaning of Section 27A
of the securities act of 1933 and section 21E
of the Securities
Exchange Act of 1934. These forward-looking statements
reflect
numerous  assumptions  and  involve  a  number  of  risks 
and uncertainties as disclosed  by the Company from  time to time in 
its filings with the Securities
and Exchange Commission. Actual
results may vary materially. 
Compagnie
Generale de Geophysique 


 
                       CONSOLIDATED FINANCIAL STATEMENTS
                               DECEMBER 31, 2012
 
                 UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
 
                                              Twelve months ended December
                                                           31,
                                             ------------------------------
                                                   2012      2011(restated)
 
 Amounts in millions of U.S.$, except per share
 data or unless indicated
 
 Operating revenues                                 3,410.5       3,180.9
 
 Other income from ordinary activities                  3.6           3.3
 
 Total income from ordinary activities              3,414.1       3,184.2
 
 Cost of operations                                (2,685.4)     (2,649.4)
 
 Gross profit                                         728.7         534.8
 
 Research and development expenses, net               (92.8)        (77.0)
 
 Marketing and selling expenses                       (96.0)        (83.1)
 
 General and administrative expenses                 (184.1)       (203.5)
 
 Other revenues (expenses), net                       (26.7)         34.3
 
 Operating income                                     329.1         205.5
 
 Expenses related to financial debt                  (159.0)       (177.2)
 
 Income provided by cash and cash equivalents           2.3           2.7
 
 Cost of financial debt, net                         (156.7)       (174.5)
 
 Other financial income (loss)                        (19.7)          0.8
 
 Income (loss) of consolidated companies before
 income taxes                                         152.7          31.8
 
 Deferred taxes on currency translation                   -          (4.6)
 
 Other income taxes                                   (98.7)        (57.9)
 
 Total income taxes                                   (98.7)        (62.5)
 
 Net income (loss) from consolidated companies         54.0         (30.7)
 
 Share of income (loss) in companies accounted
 for under equity method                               37.4          16.4
 
 Net income (loss)                                     91.4        (14.3)
 
 Attributable to :
 
 Owners of CGGVeritas                           $      74.2        (28.2)
 
 Owners of CGGVeritas (1)                   EUR        57.5        (20.1)
 
 Non-controlling interests                    $        17.2          13.9
 
 Weighted average number of shares outstanding  162,077,608   158,571,323
 
 Dilutive potential shares from stock-options       827,902           (2)
 
 Dilutive potential shares from performance share
 plan                                               503,932           (2)
 
 Dilutive potential shares from convertible bonds       (3)           (3)
 
 Dilutive weighted average number of shares
 outstanding adjusted when dilutive             163,409,442   158,571,323
 
 Net income (loss) per share
 Basic                                        $        0.46        (0.18)
 
 Basic                                      EUR        0.36        (0.13)
 
 Diluted                                      $        0.46        (0.18)
 
 Diluted                                    EUR        0.36        (0.13)

 
(1) Converted at the average exchange rate of U.S.$1.2900 and
U.S.$1.4035 per EUR for the periods ended December 31, 2012 and 2011,
respectively. 
(2) As our net result was a loss, stock-options and performance
shares plans had an anti-dilutive effect; as a consequence, potential
shares linked to those instruments were not taken into account in the
dilutive weighted average number
of shares or in the calculation of
diluted loss per share. 
(3) Convertible bonds had an accretive effect (increase of our
earning per share); as a consequence, potential shares linked to
those instruments were not
taken into account in the dilutive
weighted average number of shares or in the
calculation of diluted
income per share. 


 
             UNAUDITED INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
 
                                               Three months ended December
                                                           31,
                                             ------------------------------
                                                   2012      2011(restated)
 
 Amounts in millions of U.S.$, except per share
 data or unless indicated
 
 Operating revenues                                   937.9         904.9
 
 Other income from ordinary activities                  0.9           0.9
 
 Total income from ordinary activities                938.8         905.8
 
 Cost of operations                                  (721.6)       (729.6)
 
 Gross profit                                         217.2         176.2
 
 Research and development expenses, net               (27.4)        (21.5)
 
 Marketing and selling expenses                       (27.3)        (24.7)
 
 General and administrative expenses                  (46.6)        (62.1)
 
 Other revenues (expenses), net                       (39.5)          2.0
 
 Operating income                                      76.4          69.9
 
 Expenses related to financial debt                   (41.5)        (40.3)
 
 Income provided by cash and cash equivalents           0.3           0.9
 
 Cost of financial debt, net                          (41.2)        (39.4)
 
 Other financial income (loss)                        (21.0)         11.7
 
 Income (loss) of consolidated companies before
 income taxes                                          14.2          42.2
 
 Deferred taxes on currency translation                (0.2)         (3.2)
 
 Other income taxes                                   (11.8)        (25.5)
 
 Total income taxes                                   (12.0)        (28.7)
 
 Net income (loss) from consolidated companies          2.2          13.5
 
 Share of income (loss) in companies accounted
 for under equity method                               11.1           6.9
 
 Net income (loss)                                     13.3          20.4
 
 Attributable to :
 
 Owners of CGGVeritas                         $         9.3          16.7
 
 Owners of CGGVeritas (1)                   EUR         7.1          11.6
 
 Non-controlling interests                    $         4.0           3.7
 
 Weighted average number of shares outstanding  172,012,492   158,665,347
 
 Dilutive potential shares from stock-options       940,454           (2)
 
 Dilutive potential shares from performance share
 plan                                               503,932           (2)
 
 Dilutive potential shares from convertible bonds       (3)           (3)
 
 Dilutive weighted average number of shares
 outstanding adjusted when dilutive             173,456,878   158,665,347
 
 Net income (loss) per share
 Basic                                        $        0.05          0.10
 
 Basic                                      EUR        0.04          0.08
 
 Diluted                                      $        0.05          0.10
 
 Diluted                                    EUR        0.04          0.08

 
(1) Corresponding to the full year amount in euros less the three
quarter amount
in euros. 
(2) Stock-options and performance shares plans had an anti-dilutive
effect; as a consequence, potential shares linked to those instruments
were not taken into
account in the dilutive weighted average number
of shares or in the calculation
of diluted earning per share. 
(3) Convertible bonds had an accretive effect (increase of our
earning per share); as a consequence, potential shares linked to
those instruments were not
taken into account in the dilutive
weighted average number of shares or in the
calculation of diluted
income per share. 


 
                 Analysis by operating segment
 
                Twelve months ended December 31,
             ----------------------------------------------
                           2012
             ----------------------------------------------
                                 Eliminations Consolidated
 In millions  Services Equipment     and         Total
 of U.S.$                        Adjustments
             ---------------------------------
 
 Revenues
 from
 unaffiliated
 customers     2,456.8     953.7            -      3,410.5
 
 Inter-
 segment
 revenues          1.5     250.6      (252.1)            -
 
 Operating
 revenues      2,458.3   1,204.3      (252.1)      3,410.5
 
 Depreciation
 and
 amortization
 (excluding
 multi-
 clients
 survey)       (294.7)    (43.3)       (30.0)      (368.0)
 
 Depreciation
 and
 amortization
 of multi-
 client
 surveys       (340.9)         -            -      (340.9)
 
 Operating
 income          131.0     380.4 (182.3)(a)          329.1
 
 Share of
 income in
 companies
 accounted
 for under
 equity
 method (b)       37.4         -            -         37.4
 
 Capital
 expenditures
 (excluding
 multi-client
 surveys)
 (c)             329.4      44.1            -        373.5
 
 Investments
 in multi-
 clients
 survey          418.0         -            -        418.0
 
 Investment
 in companies
 under equity
 method.          21.7         -            -         21.7
 
                   Analysis by operating segment (cont'd)
 
                      Twelve months ended December 31,
             -----------------------------------------------
                               2011 (restated)
             -----------------------------------------------
                                    Elimations  Consolidated
 In millions   Services Equipment     and         Total
 of U.S.$                          Adjustments
             -----------------------------------------------
 
 Revenues
 from
 unaffiliated
 customers      2,289.5     891.4            -      3,180.9
 
 Inter-
 segment
 revenues           1.5     250.6      (252.1)            -
 
 Operating
 revenues       2,291.0   1,142.0      (252.1)      3,180.9
 
 Depreciation
 and
 amortization
 (excluding
 multi-
 clients
 survey)         (294.3)    (51.1)          1.7      (343.7)
 
 Depreciation
 and
 amortization
 of multi-
 client
 surveys         (285.3)         -            -      (285.3)
 
 Operating
 income             8.5     354.0        (157.0)(a)   205.5
 
 Share of
 income in
 companies
 accounted
 for under
 equity
 method (b)        16.4         -            -         16.4
 
 Capital
 expenditures
 (excluding
 multi-client
 surveys)
 (c)              369.7      27.1            -        396.8
 
 Investments
 in multi-
 clients
 survey           229.0         -            -        229.0
 
 Investment
 in companies
 under equity
 method.           36.1         -            -         36.1

  
(a) Includes general corporate expenses of U.S.$53.8 million and
U.S.$57.4 million for the twelve months ended December 31, 2012 and
2011, respectively and an impairment loss of U.S.$30 million related
to the Veritas trade name. 
(b) Of which U.S.$49.2 million and U.S.$17.4 million relate to
operational results for the twelve months ended December 31, 2012 and
2011, respectively. 
(c) Includes (i) equipment acquired under finance leases of U.S.$2.8
million and U.S.$29.1 million for the twelve months ended December
31, 2012 and 2011 respectively (ii) capitalized development costs of
U.S.$19.4 million and U.S.$18.0 million for the twelve months ended
December 31, 2012 and 2011, respectively, in the Services segment
(iii) capitalized development costs of
U.S.$9.7 million and U.S.$5.0
million for the twelve months ended December 31, 2012 and 2011,
respectively, in the Equipment segment. 


                     Three months ended December 31,
             ----------------------------------------------
                                  2012
             ----------------------------------------------
                                 Eliminations Consolidated
 In millions  Services Equipment     and         Total
 of U.S.$                        Adjustments
             ----------------------------------------------
 
 Revenues
 from            692.4     245.5            -        937.9
 unaffiliated
 customers
 
 Inter-            0.9      42.9       (43.8)            -
 segment
 revenues
 
 Operating       693.3     288.4       (43.8)        937.9
 revenues
 
 Depreciation
 and
 amortization
 (excluding
 multi-
 clients
 survey)        (74.2)    (11.2)       (30.0)       (115.4)
 
 Depreciation
 and
 amortization
 of multi-
 client
 surveys       (103.4)         -            -       (103.4)
 
 Operating
 income           57.8      80.7       (62.1) (a)     76.4
 
 Share of
 income in
 companies
 accounted
 for under
 equity
 method (b)       11.1         -            -         11.1
 
 Capital
 expenditures
 (excluding
 multi-client
 surveys)
 (c)              56.2      23.0            -         79.2
 
 Investments
 in multi-
 clients
 survey           94.3         -            -         94.3
 
                      Three months ended December 31,
             ----------------------------------------------
                            2011 (restated)
             ----------------------------------------------
                                 Eliminations Consolidated
 In millions  Services Equipment     and         Total
 of U.S.$                        Adjustments
             ----------------------------------------------
 
 Revenues
 from            632.1     272.8            -        904.9
 unaffiliated
 customers
 
 Inter-            0.6      52.8       (53.4)            -
 segment
 revenues
 
 Operating       632.7     325.6       (53.4)        904.9
 revenues
 
 Depreciation
 and
 amortization
 (excluding
 multi-
 clients
 survey)        (74.5)    (13.7)          1.7       (86.5)
 
 Depreciation
 and
 amortization
 of multi-
 client
 surveys       (123.3)         -            -      (123.3)
 
 Operating
 income          10.8      97.2         (38.1)(a)    69.9
 
 Share of
 income in
 companies
 accounted
 for under
 equity
 method (b)       6.9         -            -          6.9
 
 Capital
 expenditures
 (excluding
 multi-client
 surveys)
 (c)             102.3      11.3            -        113.6
 
 Investments
 in multi-
 clients
 survey           64.4         -            -         64.4

 
(a) Includes general corporate expenses of U.S.$13.7 million and
U.S.$16.3 million for the three months ended December 31, 2012 and
2011, respectively and
an impairment loss of U.S.$30 million related
to the Veritas trade name. 
(b) Of which U.S.$12.8 million and U.S.$8.2 million relate to
operational results for the three months ended December 31, 2012 and
2011, respectively. 
(c) Includes (i) equipment acquired under finance leases of U.S.$13.2
million
for the three months ended December 31, 2011 (ii) capitalized
development costs
of U.S.$5.4 million and U.S.$4.4 million for the
three months ended December
31, 2012 and 2011, respectively, in the
Services segment (iii) capitalized development costs of U.S.$2.7
million and U.S.$0.9 million for the three months
ended December 31,
2012 and 2011, respectively, in the Equipment segment. 


 
                  UNAUDITED CONSOLIDATED BALANCE SHEET
 
                                           --------------------------------
                                            December              December
                                            31, 2012              31, 2011
                                                                 (restated)
                                           --------------------------------
 Amounts in millions of U.S.$, unless indicated
 
 ASSETS
 
 Cash and cash equivalents                          1,520.2           531.4
 
 Trade accounts and notes receivable, net             888.7           876.0
 
 Inventories and work-in-progress, net                419.2           361.5
 
 Income tax assets                                    111.7           119.4
 
 Other current assets, net                            139.6           157.0
 
 Assets held for sale, net                            393.9            64.5
 
 Total current assets                               3,473.3         2,109.8
 
 Deferred tax assets                                  171.4           188.8
 
 Investments and other financial assets, net           53.7            24.7
 
 Investments in companies under equity method         124.5           131.7
 
 Property, plant and equipment, net                 1,159.5         1,183.2
 
 Intangible assets, net                               934.9           865.1
 
 Goodwill, net                                      2,415.5         2,688.2
 
 Total non-current assets                           4,859.5         5,081.7
 
 TOTAL ASSETS                                       8,332.8         7,191.5
 
 LIABILITIES AND EQUITY
 Bank overdrafts                                        4.2             6.0
 
 Current portion of financial debt                     47.8            64.5
 
 Trade accounts and notes payable                     505.5           386.4
 
 Accrued payroll costs                                209.9           185.7
 
 Income taxes liability payable                        97.0           159.7
 
 Advance billings to customers                         36.0            51.0
 
 Provisions - current portion                          21.0            34.6
 
 Other current liabilities                            300.2           272.3
 
 Total current liabilities                          1,221.6         1,160.2
 
 Deferred tax liabilities                             111.9           110.8
 
 Provisions - non-current portion                     107.6           106.7
 
 Financial debt                                     2,253.2         1,871.6
 
 Other non-current liabilities                         46.6            49.8
 
 Total non-current liabilities                      2,519.3         2,138.9
 
 Common stock: 264,568,736 shares authorized and
 176,392,225 shares with a EUR0.40 nominal value
 issued and outstanding at December 31, 2012
 and 151,861,932 at December 31, 2011                  92.4            79.8
 
 Additional paid-in capital                         3,179.1         2,669.3
 
 Retained earnings                                  1,203.1         1,161.1
 
 Other  reserves                                     (27.8)          (17.0)
 
 Treasury shares                                     (20.6)          (20.6)
 
 Net income (loss) for the period attributable
 to the owners of CGGVeritas                           74.2          (28.2)
 
 Cumulative income and expense recognized
 directly in equity                                   (7.6)          (11.5)
 
 Cumulative translation adjustment                      0.4          (27.6)
 
 Equity attributable to owners of CGGVeritas SA     4,493.2         3,805.3
 
 Non-controlling interests                             98.7            87.1
 
 Total equity                                       4,591.9         3,892.4
 
 TOTAL LIABILITIES AND EQUITY                       8,332.8         7,191.5

 
(1) Effective January 1st, 2012, we changed the presentation currency
of our
consolidated financial statements from the euro to the U.S.
dollar to better
reflect the profile of our revenues, costs and
cash-flows, which are primarily
generated in U.S. dollars, and hence,
to better present the financial performance of the Group. As a change
in presentation currency is a change of
accounting policy, all
comparative financial information has been restated into
U.S.
dollars. 
The currency translation adjustment was set to nil as of January 1st,
2004 on
transition to IFRS and has been re-presented on the basis that
the Group has
reported in U.S. dollars since that date. 
The functional currency of the parent company remains the euro. The
currency
translation adjustment resulting from the parent company is
presented in other
reserves. 
Main restatements related to the change in the presentation currency
from euro
to U.S. dollar are as follows (in millions): 


 
            ---------------------------------------------------------------
              Historical      Historical     Restatements      Restated
                consolidated    consolidated        (b)       consolidated
                financial       financial                      financial
             statements as   statements of                  statements as
               of Dec.31,     Dec.31, 2011                     of Dec.31,
              2011 in euros  converted into                   2011 to U.S.
                              U.S. dollars                      dollars
                                  (a)
                -----------------------------------------------------------
 Common stock,
 additional          2,883.1         3,730.5          +102.4        3,832.9
 paid-in
 capital,
 retained
 earnings and
 other
 
 Cumulative             55.8            72.2          (99.8)         (27.6)
 translation
 adjustment
                -----------------------------------------------------------
 Equity
 attributable to     2,938.9         3,802.7            +2.6        3,805.3
 owners of
 CGGVeritas

 
a) Converted at the closing exchange rate of 1.2939 U.S.$ per euro 
b) Differences between historical currency exchange rates and the
closing rate
of 1.2939 U.S.$ per 1 euro, including U.S.$(17) millions
translation adjustments
from the parent company presented in other reserves. 


 
             UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
 
                                             Twelve months ended December
                                                          31,
                                           --------------------------------
                                                  2012            2011
                                                               (restated)
                                           --------------------------------
          Amounts in millions of U.S.$
 
 OPERATING
 
 Net income (loss)                                     91.4         (14.3)
 
 Depreciation and amortization                        368.0          343.7
 
 Multi-client surveys depreciation and
 amortization                                         340.9          285.3
 
 Depreciation and amortization capitalized to
 multi-client surveys                                (54.2)          (25.8)
 
 Variance on provisions                              (18.6)          (20.9)
 
 Stock based compensation expenses                     20.9           15.7
 
 Net gain (loss) on disposal of fixed assets          (9.4)          (23.6)
 
 Equity income (loss) of investees                   (37.4)          (16.4)
 
 Dividends received from affiliates                    48.2            6.9
 
 Other non-cash items                                 (0.5)          (22.2)
 
 Net cash including net cost of financial debt
 and income tax                                       749.3          528.4
 
 Less net cost of financial debt                      156.7          174.5
 
 Less income tax expense                               98.7           62.5
 
 Net cash excluding net cost of financial debt
 and income tax                                     1,004.7          765.4
 
 Income tax paid                                    (145.1)          (92.3)
 
 Net cash before changes in working capital           859.6          673.1
 
 - change in trade accounts and notes
 receivables                                         (49.3)           60.3
 
 - change in inventories and work-in-progress       (46.7)          (14.4)
 
 - change in other current assets                      7.1            40.2
 
 - change in trade accounts and notes payable        113.8           (13.4)
 
 - change in other current liabilities                37.8            54.3
 
 Impact of changes in exchange rate on
 financial items                                      (1.4)          (10.2)
 
 Net cash provided by operating activities           920.9           789.9
 
 INVESTING
 
 Capital expenditures (including variation of
 fixed assets suppliers, excluding multi-client
 surveys)                                           (368.8)         (365.6)
 
 Investment in multi-client surveys, net cash       (363.8)         (203.2)
 
 Proceeds from disposals of tangible and
 intangible assets                                     6.2            21.3
 
 Total net proceeds from financial assets             35.4            13.0
 
 Acquisition of investments, net of cash and
 cash equivalents acquired                           (52.5)          (10.7)
 
 Impact of changes in consolidation scope                -               -
 
 Variation in loans granted                            1.7             4.6
 
 Variation in subsidies for capital
 expenditures                                         (1.2)              -
 
 Variation in other non-current financial
 assets                                               (1.6)            2.1
 
 Net cash used in investing activities              (744.6)         (538.5)
 
 FINANCING
 
 Repayment of long-term debts                        (94.8)       (1,186.9)
 
 Total issuance of long-term debts                   537.4         1,190.7
 
 Lease repayments                                    (30.1)          (38.0)
 
 Change in short-term loans                            (1.7)              -
 
 Financial expenses paid                             (125.2)        (126.9)
 
 Net proceeds from capital increase
 
 - from shareholders                                  514.8            3.2
 
 - from non-controlling interests of
 integrated companies                                    -               -
 
 Dividends paid and share capital
 reimbursements
 
 - to shareholders                                       -               -
 
 - to non-controlling interests of integrated
 companies                                            (5.6)           (4.0)
 
 Acquisition/disposal from treasury shares               -               -
 
 Net cash provided by (used in) financing
 activities                                           794.8         (161.9)
 
 Effects of exchange rates on cash                     17.7           (6.9)
 
 Net increase (decrease) in cash and cash
 equivalents                                          988.8            82.6
 
 Cash and cash equivalents at beginning of year       531.4           448.8
 
 Cash and cash equivalents at end of period         1,520.2           531.4

 
CGG- 2012 Fourth Quarter & Full Year Results: 
http://hugin.info/142000/R/1681490/549904.pdf 
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants
that: 
(i) the releases contained herein are protected by copyright and    
other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and     
originality of the information contained therein. 
Source: CGG via Thomson Reuters ONE 
[HUG#1681490] 
Contacts: 
Investor Relations 
Christophe Barnini
Tel: +33 1 64 47 38 11
E-Mail: invrelparis@cgg.com 
Investor Relations 
Antoine Lefort
Tel: +33 1 64 47 34 89
E-Mail: media.relations@cgg.com
 
 
Press spacebar to pause and continue. Press esc to stop.