CGG plans further reduction in offshore seismic acquisition fleet

Offshore staff

PARIS – CGG (NYSE:CGG) says it plans to reduce its vessel count from 13 to 11 during 2015. In addition, it plans a 25% reduction in capex for the year.

“The Transformation Plan we launched at the end of 2013 and accelerated in 2014 has led to a close to 12% reduction in our headcount, the reduction of our fleet from 18 to 13 vessels and the lowering of our breakeven point,” said Jean-Georges Malcor, CGG CEO.

“Taking into account the reduced client activity due to the very strong fall in oil prices at year-end and in line with our portfolio rebalancing strategy, we have decided to further reduce our fleet to 11 vessels in 2015 and to launch an additional cost savings and capex reduction plan.”

This came in CGG’s 4Q 2014 and year-end results report. The 4Q 2014 revenue was up 31%. At year end, its group total revenue was $3.095 billion, down 18% from 2013.  CGG reports its backlog at $1 billion as of Jan. 1, 2015. As of today, marine fleet coverage is at 92% in 1Q and 57% in 2Q 2015.

02/26/2015

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...