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1. Company Snapshot

1.a. Company Description

CGG provides data, products, services, and solutions in Earth science, data science, sensing, and monitoring in North America, the Central and South Americas, Europe, Africa, the Middle East, and the Asia Pacific.It operates through two segments, Geology, Geophysics & Reservoir; and Equipment.The Geology, Geophysics & Reservoir segment develops and licenses multi-client seismic surveys; processes seismic data; and sells seismic data processing software under the Geovation brand.


It also provides geoscience and petroleum engineering consulting services; and data management services and software to its clients, as well as collects, develops, and licenses geological data under the Robertson brand.The Equipment segment manufactures and sells seismic equipment used for land and marine seismic data acquisition, including seismic recording equipment, software, and seismic sources for land vibrators or marine sources under the Sercel, Metrolog, GRC, and DeRegt brands.It also provides customer support services, such as training.


The company provides solutions for natural resources, environmental, infrastructure, energy transition, and digital applications.The company was formerly known as Compagnie Générale de Géophysique — Veritas SA and changed its name to CGG in 2013.CGG was incorporated in 1931 and is headquartered in Massy, France.

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1.b. Last Insights on CGG

CGG's 27.0% performance over the past three months can be attributed to the company's strong Q1 2024 results, driven by a 30% year-over-year revenue growth and a 58% increase in adjusted EBITDA. The company's financial performance was also boosted by the upgrade of its long-term debt by S&P Global Ratings. Additionally, the launch of its AI Cloud solution and the alliance with Baker Hughes for carbon capture and storage solutions have likely contributed to the company's positive performance.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Viridien: Information on the total number of voting rights and shares

Jun -03

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Viridien (formerly CGG): Viridien introduces its new ticker symbol

May -17

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Viridien (formerly CGG): Combined General Meeting and Board of Directors Meeting of May 15, 2024

May -16

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CGG Changes Name to Viridien

May -16

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CGG Announces its Q1 2024 Results

May -14

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CGG Launches AI Cloud Solution Powered by NVIDIA for Optimized AI and HPC Workloads

May -09

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CGG Announces Alliance with Baker Hughes Offering Carbon Capture & Storage Solutions

May -08

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CGG Announces its Q1 Financial Results on Tuesday 14th May 2024, after Market Close

Apr -26

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.10%)

6. Segments

Data, Digital & Energy Transition

Expected Growth: 5%

CGG's 5% growth driven by increasing demand for subsurface imaging and geophysical services in energy transition, digitalization of oil and gas operations, and rising need for data analytics and insights to optimize exploration and production. Growing adoption of digital technologies, such as AI and cloud computing, also fuels growth.

Sensing and Monitoring

Expected Growth: 3%

CGG's Sensing and Monitoring segment growth is driven by increasing demand for seismic data and services, expansion into new markets, and strategic partnerships. Additionally, advancements in technology, such as AI and cloud computing, enhance data processing and interpretation, further fueling growth.

Reconciling Items

Expected Growth: 2%

Reconciling items from CGG with 2% growth driven by increasing demand for seismic services, improved operational efficiency, and strategic cost reductions. Additionally, growth is fueled by expansion into new markets, innovative product offerings, and strategic partnerships, resulting in enhanced revenue streams and improved profitability.

7. Detailed Products

Seismic Data Acquisition

CGG's seismic data acquisition services provide high-quality seismic data to help oil and gas companies explore and produce hydrocarbons.

Seismic Data Processing

CGG's seismic data processing services provide advanced processing and imaging techniques to enhance seismic data quality and resolution.

Reservoir Characterization

CGG's reservoir characterization services provide detailed reservoir models and simulations to optimize hydrocarbon recovery.

Geological and Geophysical Consulting

CGG's geological and geophysical consulting services provide expert advice and guidance on exploration and production projects.

Multi-Client Data

CGG's multi-client data services provide non-exclusive seismic data and geological studies to support exploration and production activities.

Equipment Sales and Rental

CGG's equipment sales and rental services provide seismic data acquisition equipment and accessories to support exploration and production activities.

8. CGG's Porter Forces

Forces Ranking

Threat Of Substitutes

CGG faces moderate threat from substitutes, as clients can opt for other geophysical services providers or in-house solutions.

Bargaining Power Of Customers

CGG's customers, primarily oil and gas companies, have significant bargaining power due to their large scale and negotiating capabilities.

Bargaining Power Of Suppliers

CGG has a diverse supplier base, reducing the bargaining power of individual suppliers, and the company's scale and reputation also mitigate supplier power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including significant capital requirements, technological expertise, and regulatory hurdles.

Intensity Of Rivalry

The geophysical services market is highly competitive, with several established players, leading to intense rivalry and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 55.98%
Debt Cost 14.06%
Equity Weight 44.02%
Equity Cost 14.06%
WACC 14.06%
Leverage 127.18%

11. Quality Control: CGG passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Schoeller-Bleckmann Oilfield Equipment

A-Score: 5.6/10

Value: 7.6

Growth: 5.4

Quality: 5.0

Yield: 6.9

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
TGS

A-Score: 4.5/10

Value: 6.8

Growth: 4.3

Quality: 3.9

Yield: 8.8

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Gulf Marine Services

A-Score: 4.2/10

Value: 8.8

Growth: 3.1

Quality: 6.7

Yield: 0.0

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Edda Wind

A-Score: 3.7/10

Value: 6.0

Growth: 3.1

Quality: 2.3

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
CGG

A-Score: 3.5/10

Value: 9.2

Growth: 4.4

Quality: 2.3

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
PGS

A-Score: 2.7/10

Value: 8.2

Growth: 2.1

Quality: 1.6

Yield: 0.0

Momentum: 4.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.54$

Current Price

0.54$

Potential

-0.00%

Expected Cash-Flows