Summary of CGG SA 1H24 Results and Analysis for DUGCGG SA...

Summary of CGG SA 1H24 Results and Analysis for DUG

CGG SA Performance:

• Revenue Growth: CGG's Geoscience segment grew by 8% year-on-year (YoY) with 11% external revenue growth in Q1.
• Market Share: CGG claims a 40% market share but is losing ground compared to DUG, which saw a 39% growth.
• Backlog Increase: CGG's backlog increased by 23% since the end of last year, indicating visibility for gradual growth.

Industry and Competitive Landscape:

• Industry Growth: CGG management remains confident about the industry's growth, citing increasing global exploration activities.
• Technological Advances: CGG's use of advanced technologies like elastic full waveform inversion and AI/ML techniques is expanding geographically and across various geologic settings.
• Low Carbon Initiatives: Growth is noted in CCUS (carbon capture, utilization, and storage) and Minerals & Mining sectors, with increasing demand for reservoir screening and imaging technologies.
• Geographic Expansion: Interest from international oil companies (IOCs) is increasing, with new exploration activities in frontier areas like Suriname, Namibia, and Uruguay.

Market Dynamics:

• Competitor Impact: The merger between PGS and TGS is causing some clients to favor CGG due to concerns over reduced competition.

Outlook:

• Steady Growth: CGG anticipates continued gradual growth throughout the year with solid activity in high-end projects and increasing order intake.

Key Takeaways for DUG:

• Market Position: DUG's significantly higher growth rate (39%) suggests it is gaining market share at the expense of CGG.
• Competitive Advantage: DUG's robust performance compared to CGG highlights its competitive edge in the seismic data processing and imaging market.

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