Report
Jon Masdal
EUR 91.47 For Business Accounts Only

CGG (Hold, TP: EUR1.00) - In line on sales, below on EBITDA

As we forecast Q2 sales of USD212m – broadly in line with consensus – we do not expect a pre-warning from CGG. However, as our EBITDA estimate is 17% below consensus, we advise caution ahead of the Q2 report, due on 29 July. We expect a challenging period ahead for exploration spending, and maintain our muted sector view, with a HOLD and EUR1 target price reiterated for CGG.
Underlying
CGG
CGG

CGG is a global participant in the geophysical seismic industry. Co. manufactures geophysical equipment and provides marine, land, and airborne data acquisition services. Co. also provides geosciences services, including data imaging, seismic data characterization, geosciences and petroleum engineering consulting services, and collecting, developing and licensing geological data. Co.'s clients are in oil and gas exploration and production industies. Co. divides its activities into four segments: Equipment, Contractual Data Acquisition, Geology, Geophysics and Reservoir (GGR), and Non-Operated Resources, including eight business lines, six Corporate functions, and four Group Departments.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Jon Masdal

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