CGG SA 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 8.2 percent, the biggest drop since Feb. 28, to 15.67 euros by the Paris close, with volumes five times the three-month average. CGG sees 15 percent to 17 percent sales growth, it 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 major contracts, CGG said.
“We are now seeing a tougher second half due to a temporary weakness in demand for seismic equipment and softer contract marine market conditions,” Jean-Georges Malcor, chief executive officer of Paris-based CGG, said in the 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.