CGGVeritas Returns to Profit as Seismic-Survey Demand Increases
CGGVeritas (GA), the largest seismic surveyor of oilfields, reported a profit in the second quarter as demand increased, and said sales will grow this year.
Net income totaled $34 million, compared with a loss of $38 million a year earlier, the Massy, France-based company said today in a statement. Revenue climbed 11 percent to $831 million and will rise 10 percent to 15 percent in 2012, it said.
“This year will be one of growth,” Chief Executive Officer Jean-Georges Malcor said on a conference call. An oversupply of services in the seismic-surveying industry is easing, the company said.
Oilfield surveyors, which provide vessels and equipment to estimate the size of oil and gas deposits, have forecast a pickup in demand as energy explorers raise spending to counter depletion at mature fields. Technip SA (TEC), Europe’s second-largest oil-services provider, also reported a jump in sales yesterday.
CGGVeritas posted a group operating margin of 10 percent, up from 2 percent a year earlier. The margin for equipment- supply unit Sercel rose to 32 percent from 28 percent, compared with 3 percent for the services division.
The company, which agreed on an alliance with Russia’s JSC Sevmorneftegeofizika this month, said its order backlog on June 30 was $1.3 billion, little changed from last year.
“We are in line with competitors” on orders, Malcor said. The third quarter is fully booked, the fourth is at about 50 percent and the first quarter of 2012 is “seriously filling up,” he said.
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