CGG - comment

The impact of changes in investment budgets is starting to show up in order books. Petrobras has extended the contract with CGG for a dedicated service centre in Brazil by four years. The extension provides CGG with certainty around revenues in Brazil’s offshore fields and affords CGG enhanced opportunities to bid on new exploration blocks. On its own, the contract extension does not move the needle much for CGG, but exploration off the coast of Brazil is going to remain significant and being the incumbent data supplier will be valuable for CGG. Our model forecasts improving CAPEX trends ahead of the development of new fields and this contract supports this view.

Petrobras extends contract for CGG's dedicated reservoir services center - Offshore Energy (offshore-energy.biz)