Agenda. CGGVeritas - Overview. Sercel & Services Detail. H Update. Outlook and Perspectives

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Transcription:

Agenda CGGVeritas - Overview Sercel & Services Detail H1 2009 Update Outlook and Perspectives 2

CGGVeritas: A Full Range of Activities H1 2009 Sales: $1.6bn; EBITDAs: $0.5bn Equipment Services Sercel Marine Land Multi-client Processing & Imaging Industry leader Full spectrum of technology Large installed base: Near 2 million channels Over 500 Nomad Vibes 2,600 km streamers Leading global fleet Highest solid streamer deployment Unique position in desert and Arctic High density, high productivity leadership 15 high-end (8 streamer +) and 12 lower-end vessels Expertise in non conventional reservoirs Unique 4D and wide-azimuth expertise Shallow water leadership Most recent Marine library with key data in Gulf of Mexico & Brazil Unique land library position in USA & Canada, including Haynesville Worldwide network of data processing and imaging centers 28 open centers 13 dedicated centers Recently opened tech centers in Mumbai, Saudi, Beijing & Mexico Preferred supplier for depth and high end imaging H1 2009 Sales: $0.44bn H1 2009 EBITDAs: $0.13bn H1 2009 Revenue: $1.63bn H1 2009 EBITDAs: $0.43bn 3

Market Overview 2009 E&P down around 15%, with sharp decrease in North America and 5-10 % international Seismic further impacted Equipment 25-30% Services >20% 4

CGGVeritas: Adjusting to Current Market Conditions Global cost reduction programs expected to bring $250m in savings, including a 15% reduction of marine costs by mid 2010 Reducing marine fleet from 27 to 20 vessels. Four in 2009 and three more by mid 2010 The Harmattan 3D vessel was decommissioned in Q2. Following contract completions, two other 3D vessels and one 2D vessel will be de-rigged in 2009. Three additional 2D vessels will be decommissioned in 2010. One-time restructuring charge of $87m ($30m asset write-off, $57m expenses) Concentrated on a fifteen 3D (+8 streamer) and five small 3D/2D vessel fleet by the second half of 2010 Average age of 3D fleet below 12 years near lowest in industry Average streamers per 3D vessel above 10 near highest in industry 5

Agenda CGGVeritas - Overview Sercel & Services Detail H1 2009 Update Outlook and Perspectives 6

7 A full range of highly sophisticated Seismic Equipment for the exploration and production of hydrocarbons in all environments

A Proven Strategy A full range of leading products Leading edge technology High level of R&D New products ahead of future seismic acquisition 428XL: Ready for high channel crews Sentinel : Ready for large spread, and multi-azimuth, steerable streamers Manufacturing excellence quality, reliability & productivity Worldwide presence Outstanding customer support High barriers of entry 8

A Full Range of Leading Products Land & TZ Marine & OBC Downhole - Acquisition systems & related QC software - Geophones / hydrophones - Vibrators - Acquisition systems & related QC systems - Marine sources - Underwater acoustics - Acquisition & QC systems - Downhole gauges - Vibrators and marine sources - High temperature geophones 9

Leader in Geophysical Equipment A proven strategy Remarkable history of growth Strong financial performance 65% (e) 46% 46% 52% 49% 59% 54% 57% 57% 1 080 62% 1 209 27% 767 18% 164 116 222 288 248 246 390 470 440 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 H1 2009 Sercel Revenues in M$ (including internal revenues) Market Share of Seismic Equipment Source: Company data and estimates. 10

11 Over 75 years of driving the advance of geophysics through technology innovation and integration to assist our clients, find reserves in new areas or improve oil recovery in known reservoirs

Uniquely Positioned to Meet Clients Needs Worldwide local presence Singular focus on the full spectrum of Geophysical Services A history of innovation leadership A track record of successes Exploration Delineation Development Production 12 Services

Industry Reference in Imaging Calgary Villahermosa Stavanger Oslo Aberdeen London Moscow Assen Massy Vienna Beijing Pau Madrid Milan Almaty Houston Tunis Tripoli Cairo Al Khobar Abu Dhabi Muscat Mumbai Ciudad del Carmen Bangkok Caracas Lagos Kuala Lumpur Singapore Jakarta Luanda Rio Perth Buenos Aires CGGVeritas s Open Centres CGGVeritas s Single-Client Dedicated Centres Source: Company Data. 13

Most Recent and Well Positioned Library 3D: 22,140 sq km Canada US Land N. Sea Lybia 3D: 40,000 sq km Caspian Well Positioned: Basin potential Proven system New play emergence Beneficial Regulations Stable E&P rules Good lease turnover Exclusivity period Customer interest Active bidding High prefunding 3D: 20,900 sq km GOM 3D: 27,600 sq km 2D: 42,900 km 3D:131,700 sq km Waz: 37,400 sq km W. Africa 2D: 43,300 km Asia Indonesia 2D: 17,200 km Land 3D = 43,040 km2 Marine 3D = 337,000 km2 Waz = 37,400 km2 Source: Company Data. Reprocessed not included. Rounded figures. Brazil 3D: 90,200 sq km Unique and most recent data sets developed: Offshore Deep water Sub-Salt GOM Deep water Sub-Salt Santos (Brazil) Central Graben in North Sea (UK) Onshore Deep Gas in the Canadian Foothills Resources play (Haynesville) 14

History of Successes: Brazil (Santos) - Tupi Reservoir 15

Agenda CGGVeritas - Overview Sercel & Services Detail H1 2009 Update Outlook and Perspectives 16

H1 - Strong Financial Resilience with 12% Margin (In million dollars) H1 2009 H1 2008 % Change Revenue 1 630 1 747-7% Operating Income before restructuring costs 199 335-41% Operating Margin (%) 12% 19% Restructuring Costs -87 0 Operating Income 112 335-67% Operating Margin (%) 7% 19% Financial Charges -69-63 Other Financial Charges -4-2 Income Taxes -43-98 Deferred Taxes on Currency Translation 8 0 Equity in income of affiliates 3 5 Net Income before restructuring costs 94 177-47% EPS ( ) 0.44 0.81-45% EPS/ADS ($) 0.59 1.24-52% Net Income 38 177-78% EPS ( ) 0.17 0.81-80% EPS/ADS ($) 0.22 1.24-82% 17

H1 / Net Debt to Equity Ratio stable at 36% EBITDAs before restructuring: Group $514m, 32% margin Sercel at $131m, a 30% margin Services at $431m, a 35% margin Industrial Capex: $129m Including $10m development costs. Multi-Client Capex: $193m Marine Capex at $163m, 63% prefunded Cash Flow from operations: $340m Net Free Cash Flow at -$9m Gross Debt down at $2.2B Net Debt at $1.5B Net Debt to Equity Ratio stable at 36% Net Free Cash Flow / Capex (in million $) Strengthened balance sheet Increased headroom and extended the debt maturity profile. Successfully priced an upsized offering of $350 million 24 425-9 2008 2009 Net Free Cash Flow Capex 322 18

Increased Fortification from Market Instabilities Extended Debt Maturity Profile Liquidity at $1.0 B As of end of Q2 2009 (in million $) Credit Line $85m Debt Maturity As of end of Q2 2009 Capital leases $187m 729 139 151 High-Yield Bond 2016 $350m Term Loan B 2014 $675m Outstanding Cash Undrawn US Undrawm FR High-Yield Bond 2017 $400m High-Yield Bond 2015 $530m Recent amendment of our US Senior Facilities and French Revolving facility agreements and successfull Offering of $350 million principal amount of 9.5% Senior Notes due 2016 19

Agenda CGGVeritas - Overview Sercel & Services Detail H1 2009 Update Outlook and Perspectives 20

Outlook and Perspectives Stronger position in a weaker market The seismic market remains more impacted than general E&P, particularly in contract marine Results in line with expectations supported by our unique broad portfolio Contract Marine was increasingly plagued by overcapacity - in the second half of the year, the industry has to reduce overall fleet size CGGVeritas aggressively adjusting to strengthen financial performance Concentrate on 15 3D and 5 small 3D/2D vessels- standardize and high-grade Disciplined capital spending on track Global cost reduction programs expected to bring $250m by mid 2010 Strengthened balance sheet The oil price increase is a positive sign but has not yet been sufficient to initiate a seismic rebound Increasing interest especially in our Haynesville, Santos basin Tupi expansion and Gulf of Mexico wide-azimuth multi-client surveys We remain focused on generating a healthy net free cash flow and strengthening our leadership in the future 21