CGG - comment

CGG results yesterday beat our expectations. DDE performed mostly as expected, but underlying segment revenue from SMO beat our expectations on better equipment deliveries, despite commercial restrictions in Russia. We may feel compelled to lift our expectations in this segment for 2023 further, but overall our model seems to be in line with / just below management guidance for 2023. The stronger result largely feeds through to a stronger cash position at the end of the year, but going forward the company still has to find a way to produce more cashflow. We agree with management that NCF outlook for the year remains largely flat.