CGG - comment

The Data business' softness was an unpleasant surprise, especially before the background of bullish statements from Schlumberger. CGG explained that this was phasing from different parts of the industry and that it expected a stronger H2. Also, the company affirmed guidance for FCF (ex-working capital) breakeven, despite H1 seeing +$30m. Management commented that orders were likely to be backloaded in H2. However, this would mostly impact receivables which aren’t part of the calculation. Orders expected in 2023 may be going to slip into 2024. CGG has ample liquidity to cover this, but management is being given little leeway by the equity market.