CGG - comment

Q3 was strong, with  DDE and Earth Data divisions seeing a jump in orders in the quarter. The promised stronger H2 seems to be materialising. CGG effectively increased its cash flow guidance from breakeven before working capital to USD30m. Working capital is expected to be cUSD33m negative. Liquidity was USD275m plus an undrawn USD95m RCF, whilst the minimum cash required to operate is USD150m. Management said it would consider using excess cash to retire debt, however, we will not hold our breath. Consistently generating cash flow remains a perennial challenge for CGG.