CGG Falls Most in Eight Months in Paris on Cut in Sales Forecast

CGG SA (CGG) plunged by the most in eight months in Paris as the largest seismic surveyor of oilfields cut its full-year sales forecast on a temporary weakening in demand.

The company fell as much as 9.4 percent, the biggest drop since Feb. 28. CGG sees 15 percent to 17 percent sales growth, the company said today in a statement, down from 25 percent.

“CGG had a weak set of third-quarter results with uncertainties remaining around marine pricing during the winter season,” Bertrand Hodee, a Raymond James analyst, said today.

Net income declined to $4 million from $48 million a year earlier after delays in awarding of major contracts, CGG said.

The company slid 8.5 percent to 15.615 euros by 1:18 p.m. in trading in Paris, where the surveyor is based, with almost three times the daily average volume in the past three months.

“We are now seeing a tougher second half due to a temporary weakness in demand for seismic equipment and softer contract marine market conditions,” Chief Executive Officer Jean-Georges Malcor said in the results statement.

CGG expects “big” tenders from Saudi Arabian Oil Co. and Kuwait within days or weeks, deals in Oman in a few months and in Abu Dhabi next year, Malcor said today on a conference call.

CGG won a “large” seismic survey for Petroleos Mexicanos in the Gulf of Mexico, it said in a separate statement. The project begins in mid-November and will conclude by March 2014.

To contact the reporter on this story: Nidaa Bakhsh in London at nbakhsh@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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