CGG Falls Most in Eight Months on Sales Forecast ReductionNidaa Bakhsh
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.