French seismic contractor, CGG, recognised widened quarterly net loss as the market slowdown made a major dent in the company’s revenues.
In the first quarter 2016, CGG generated revenues of $313 million, down 45 per cent compared to Q1 2015 ($570 million) and down close to 47 per cent quarter-over-quarter ($589 million).
The company recognised quarterly net loss of $130 million, versus $55 million loss same time last year. CGG improved quarter-over-quarter, narrowing its loss form $256 million.
“Our clients are reacting strongly to the prevailing very unfavorable oil prices by continuing to significantly reduce their capital expenditure and headcounts, and this has had a strong impact on our activities. This environment has mostly penalized Sercel and our multi-client after-sales, although the latter had a very good fourth quarter in 2015,” stated Jean-Georges Malcor, CGG CEO.
Malcor also said that the company expects a depressed environment for the whole year, but also to see full benefits from its earlier initiated transformation plan in the second half.
Subsea World News Staff