French oil and gas parapet group CGG said Wednesday it narrowed its net loss in the first quarter of 2023 to $16 million from $18 million a year earlier, thanks to a “very good start to the year” that boosted revenues.
The company, which posted a group share net profit of $43 million in 2022 versus a hefty loss in 2021, saw revenue, according to IFRS 15 financial standard, rise 2% year over year to $178 million in the first quarter of 2023. Operating profit, however, fell by 40% to $7 million.
Without taking this accounting standard into account, sales of its activities increased by 37% to 210 million dollars for the first three months of the year and gross operating profit(Ebitda) rose by 71% to 66 million dollars. “CGG is well positioned to meet the needs of its clients, and confident of achieving its 2023 objectives,” commented Sophie Zurquiyah, group CEO, in a statement.
CGG expects “about 15% to 20% growth” in business revenues in 2023 and an adjusted business operating margin “around 39% to 41%” compared to 43% in 2022 and 31% in Q1. The geosciences company – responsible for assessing subsoil resources – had been challenged by the fall in crude oil prices from 2014, but the post-health crisis recovery is supporting hydrocarbon prices, which surged after the Russian invasion of Ukraine, and is benefiting CGG’s oil and gas company clients.
However, the group suffered last year from project postponements due to geopolitical uncertainties and warned in March, at the time of its annual results, that a “high quarterly volatility in revenues” was expected in 2023.
