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CGG Falls Most in Eight Months on Sales Forecast Reduction

Nov. 7 (Bloomberg) -- 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.

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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