Bloomberg News

CGG Veritas Says Demand Will Improve After Posting 2011 Loss

March 01, 2012

-- CGG Veritas, the world’s largest seismic surveyor of oilfields, said demand for its services is strengthening after recording a loss in 2011.

Net income slipped to $21 million in the fourth quarter from $53 million in the last three months of 2010, the company said today in a statement in Paris. The full-year loss was $13 million, which included one-time charges related to restructuring the business of $42 million.

The company fell 0.4 percent to 23.10 euros by the close of Paris trade, extending the loss in the past year to 14 percent.

CGG Veritas was hurt by uprisings in Libya and parts of the Middle East as well as the slowdown in Gulf of Mexico following the worst U.S. oil spill in 2010. Oil companies may spend more to collect seismic data as oil prices hold above $100 a barrel, Chief Executive Officer Jean-Georges Malcor said.

“Looking forward into 2012, in the context of a strong oil price environment, exploration and production spending is expected to continue to grow,” said Malcor in a statement. “The ongoing strengthening of our high-end positioning and technological differentiation positions us to fully benefit from the expected robust seismic market conditions.”

The company’s order backlog rose 18 percent in the fourth quarter from the third quarter to $1.46 billion.

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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