CGGVeritas Posts $874MM Revenue in Second Quarter

CGGVeritas announced its second quarter 2008 unaudited financial results. The company posted revenue of $874 million, up by 14%. Group operating income was up 11% to $151 million. Sercel delivered robust performance and Services was in line with expectations resulting in a group operating margin of 17%. With a constant dollar-to-Euro exchange rate, the margin would be approximately 19%.

Sercel revenue grew 7% to $281 million with a 30% operating margin. With a constant exchange rate, the margin would be approximately 34%.

Services revenue grew 17% to $613 million with a 14% operating margin. During the quarter we saw lower marine availability and production rates as previously communicated and strengthening multi-client sales.

Net income of $81 million represented 9% of revenue corresponding to $0.56 per ADS. Net income in Euros was EUR52 million corresponding to EUR 0.35 earnings per share (EPS).

The firm's Backlog as of July 1, 2008 remains strong at $1.7 billion.

"During the quarter, our revenue grew 14% year-on-year and net income grew 35%," said CGGVeritas Chairman and CEO Robert Brunck. "At the operational level, continued robust performance of Sercel, strong contract demand in Services and increasing multi-client sales were offset partially by lower marine utilization rates, low seasonal activity in land and the unfavorable euro/dollar exchange rate.