CGG reduces staff, vessel fleet

Offshore staff

MASSY, FranceCGG has issued an update on its plans to scale back operations and re-position itself as an integrated geoscience company.

CEO Jean-Georges Malcor said: “Anticipating market conditions that continue to deteriorate in 4Q and that could remain at such levels for longer, we intend to strengthen this strategy which has been implemented over the last two years.

“This…will mainly translate into the resizing of our marine fleet to five vessels, two-thirds of their capacity being dedicated to multi-client programs.

“Looking forward, this action will allow our contractual data acquisition activity to represent less than 15% of our consolidated revenue, thereby reducing the group’s exposure to this cyclical, highly competitive and high capital-intensive business. This adjustment of our fleet and the cost-reduction measures will result in the cut of around 13% of job positions worldwide.”

The board’s goal, he added, was “to build a rebalanced company supported by our unique positions in equipment, in multi-client, in imaging and reservoir, and by our technology expertise in data acquisition.

“CGG should remain resilient all along the downturn of the cycle to become strongly cash-generative when the market bounces back.”

11/05/2015

 

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