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Edited Transcript of CGG.PA earnings conference call or presentation 26-Jul-19 6:30am GMT

Q2 2019 CGG SA Earnings Call

Paris Cedex 15 Jul 31, 2019 (Thomson StreetEvents) -- Edited Transcript of CGG SA earnings conference call or presentation Friday, July 26, 2019 at 6:30:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Christophe Barnini

CGG - Head of Group Communications & IR

* Sophie Zurquiyah-Rousset

CGG - CEO & Director

* Yuri Baidoukov

CGG - Senior EVP & Group CFO

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Conference Call Participants

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* Jean-Luc Romain

CM-CIC Market Solutions, Research Division - Analyst

* Kevin Roger

Kepler Cheuvreux, Research Division - Research Analyst

* Piotr Ossowicz

Ironshield Capital Management LLP - Senior Analyst

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Presentation

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Operator [1]

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Good morning, ladies and gentlemen, and thank you for standing by. Welcome to today's second quarter 2019 conference call. (Operator Instructions) I must advise you that this conference is being recorded today, on Friday, the 26th of July 2019.

I'd now like to turn the conference over to CGG. Please go ahead.

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Christophe Barnini, CGG - Head of Group Communications & IR [2]

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Thank you. Good morning, ladies and gentlemen. Welcome to this presentation of CGG's Second Quarter 2019 Results. The call today is hosted from Paris where Mrs. Sophie Zurquiyah, CEO; and Mr. Yuri Baidoukov, Group CFO, will provide an overview of the second quarter 2019 results as well as provide comments on our outlook.

As a reminder, some of the information contains forward-looking statements including, without limitation, statements about CGG's plans, strategies and prospects. These forward-looking statements are subject to risks and uncertainties that may change at any time, and therefore, the actual results may differ materially from those that were expected. Following the overview of the quarter, we will be pleased to take your questions.

And now I will turn the call over to Sophie.

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Sophie Zurquiyah-Rousset, CGG - CEO & Director [3]

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Good morning, ladies and gentlemen. Thank you for participating in this Q2 2019 conference call. Our presentation will cover our second quarter operational and financial results. We continue to operate in a gradually improving environment despite continued volatility in oil prices. Our clients recognize that oil and gas will remain an important part of the energy mix for the long run and therefore, have confidence in their need to replace existing production. In general, our clients are budgeting on a $50 Brent price and are financially healthy at current oil price levels, yet they remain disciplined in prioritizing their spending, and we continue to feel procurement pressure.

I'm on Slide 5 now. I am pleased to say that we delivered strong Q2 2019 results, representing a 24% revenue growth year-on-year mainly driven by Land, Equipment and Multi-Client sales. Our 50% EBITDA margin was driven by increased profitability in both Equipment and Geoscience and revenue growth in the high-EBITDA-margin Multi-Client. Operating income was positive at $53 million, a 15% margin including the minus $37 million impact from the application of the 4-year straight-line amortization of Multi-Client surveys, which we implemented in Q4 last year.

Segment free cash flow was $38 million compared to $4 million last year. We are benefiting from an increasingly positive contribution of the Equipment business to the overall results of CGG. Net cash flow this quarter was negative at minus $31 million due to a negative change of working capital of minus $58 million resulting from increased activity across the board. We expect to cash in receivables from our Acquisition business in the second half of the year as it winds down. I remain very confident that by year-end, the cash burn from discontinued operations will be limited to less than $25 million, and Yuri will cover that later on.

In addition, during the quarter, we adjusted the fair value of our Marine and JV disposal groups to reflect their fair market value. This revision translated into noncash impairment of $104 million.

I'd like now to briefly review our H1 results. Our first half 2019 results demonstrate the strength of our Equipment business recovery and performance. We posted 23% revenue growth year-on-year with a 47% EBITDA margin and 10% operating income margin. Certainly, the highlight of H1 is our positive net cash flow at $13 million, a positive $147 million first semester free cash flow generation improvement compared to last year, thanks to our revenue increase, profitability improvements in all segments and our cost management initiative.

I'll now cover our key Q2 2019 operational achievements by reporting segments. I'm now on Slide 7. Global offshore exploration and production activity and spend continue to gradually recover. In general, our clients are also increasingly -- increasing their G&G spend as we invest to de-risk activities and increase efficiency. High-resolution seismic images of the subsurface can reduce both the number of appraisal and dry wells. In this context, our Geoscience technology and services along with our portfolio of Multi-Client data in major producing basins remain extremely valuable. The GGR segment, that include our Geoscience and Multi-Client businesses, delivered an 8% year-on-year revenue increase with Geoscience stable and Multi-Client up 15%. GGR EBITDA was higher at 68% driven by both Multi-Client volume and strengthening Geoscience profitability.

Slide 8. Geoscience activity is very much driven by new technology which provides step improvements in both the understanding of the subsurface and reservoir behavior. As an example, we see more and more data being acquired by ocean bottom nodes, and clients are often reprocessing this data together with multiple vintages of all the data to provide high-resolution images of the subsurface. Clients are also catching up on delayed 4D acquisitions that they had put off during the downturn. Such technology is more applied and relevant to near-field exploration and reservoir development which drive our activity currently. However, we're starting to see positive trends in pure explorations as well.

Middle East is an opportunity for Geoscience given the large volumes of data acquired, not just for the imaging business but also for our reservoir characterization and interpretation activities as clients in the region typically prefer integrated offers. Our high-end Geoscience offerings and recent contract awards, combined with positive market signals, provide us confidence in the positive momentum of this business. Year-to-date new orders reached $230 million, plus 30% year-on-year including the large OBN processing work in Abu Dhabi and Norway 4D projects.

I'm on Slide 9 now. Geoscience total production was $128 million, up 3% year-on-year. Internal production increased this quarter as we dedicated more Geoscience resources to the processing of our Multi-Client projects. Significant long-term contracts were awarded in H1 which we will start to work on in H2 following acquisition of the data. Computing power is an enabler, and we will soon exceed 200 petaflops in our global infrastructure.

I'm moving on to Multi-Client now. This quarter, our Multi-Client CapEx was $56 million. Onshore U.S., we were active in Oklahoma, extending our large footprint in the SCOOP/STACK play with an extension towards Chickasha survey. We were also in a drilling phase preparing for the acquisition of our Bayou Boeuf large project in the Austin Chalk of Louisiana targeting a new horizontal play. In the GOM, we completed our first Multi-Client ocean bottom node survey. It's located in the node central region of the Gulf of Mexico. This dense node survey images the geologically complex subsalt structures in the Mississippi Canyon and provide the data set that we can use to showcase our OBN processing technology. Offshore Brazil, we started our 15,000 square kilometer Nebula program over an area of high interest in the Santos Basin. In the Barents Sea, we're getting ready to start a TopSeis survey that will image shallow targets. Our current pipeline of Multi-Client projects is very healthy, and we believe we will spend in the range of $215 million Multi-Client CapEx in 2019 with a minimum of 70% prefunding rate.

Multi-Client revenue was $128 million this quarter, up 15% year-on-year with $56 million CapEx and an 88% prefunding rate. Aftersales of $78 million were particularly robust this quarter driven by strong interest in Scandinavia offering. Our new 4-year straight-line amortization that we implemented in Q4 last year would allow maintaining a very healthy net book value comprising of most recent surveys.

I am moving on to Equipment right now. Demand for Sercel land equipment remained strong. During the quarter, Equipment delivered 3 508XT land data acquisition systems in the Middle East including 1 508XT in Saudi Arabia for a MegaCrew. Equipment was also active in North Africa where we delivered 428XL land equipment systems. While the market is recovering, we do not have clear visibility for any such MegaCrew in H2. We expect Equipment activity in the second half of the year to be driven by a more usual business activity, and we have several leads for medium-sized land crews of typically 15,000 to 20,000 channels.

The Marine market remains weak as CapEx from marine seismic contractors is still constrained. The streamer base is aging. And so far, Sercel’s repair workshops and advances in data processing have been supportive to correct issues from degrading sensors. Eventually, our Equipment clients will have to start renewing their spreads which we expect to commence some time in 2020.

Demand for gauges and downhole tools should be stable year-on-year. And in the non-oil and gas business, Equipment is designing and manufacturing its first prototypes to enter the growing infrastructure monitoring market.

Equipment delivered excellent financial performance this quarter. Segment revenue was $123 million, up 48% year-on-year. Land equipment represented around 70% of total sales. And as we transition to an asset-light model, the level of internal revenue for the Equipment business is becoming marginal and represented only $3 million this quarter. Equipment segment EBITDA was $28 million, a margin of 22% driven by strong Land volumes. Equipment segment operating income was $20 million with a strong margin of 16% as high volumes enabled the better absorption of manufacturing costs.

Moving on to Slide 14. Equipment is dedicated to continuing its long-standing leadership in the land market and is maintaining a healthy pipeline of new products. One of the recently introduced products is the 508XT that is now our flagship cable land acquisition system. It is already utilized by more than 10% of the seismic crews worldwide. With its million-channel capacity and state-of-the-art digital sensor, it is the best technology for high-density land acquisitions. A transition zone version has just been released with 10,000 channels delivered to a Russian client. And we're working on a new compatible wireless node. I'm excited about this system and believe it will be a key to Sercel's continued leadership in the land market.

With this, I will now turn the floor to Yuri for financial overview.

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Yuri Baidoukov, CGG - Senior EVP & Group CFO [4]

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Thank you, Sophie. Good morning, ladies and gentlemen.

Looking at the consolidated P&L for Q2 2019 on Slide 16. Segment revenue from our new profile amounted to $340 million, up 24% year-on-year mainly on growing Sercel and solid Multi-Client sales. Geoscience accounted for 27%; Multi-Client, for 38%; and Equipment for 35% of revenue. Segment EBITDA was $171 million, up 51% year-on-year with a high 50% margin. EBITDA of both GGR and Equipment segments increased significantly year-on-year. GGR EBITDA margin was 68%, and Equipment EBITDA margin was 22%.

At segment OPINC level, group performance was positive at $53 million, stable year-on-year despite $37 million negative impact from the application of 4-year straight-line amortization in Multi-Client business. Net cost of financial debt amounted to $33 million. Net income from continuing operations was positive at $16 million. Net loss from discontinued operations this quarter was $113 million including noncash impairment of $104 million. Following the announced strategic agreement with Shearwater, we took additional net noncash impairments of $45 million related to the Marine disposal group. In addition to that, we remeasured the fair value of our 40% investment in SBGS, our joint venture with Fugro, which resulted in noncash impairment of $59 million.

Moving to Slide 17, cash flow statement. Over the first 6 months, CGG generated $13 million of net cash flow. Segment free cash flow generation increased significantly by $147 million to $167 million in the first half of 2019 compared to $20 million last year, a significant improvement year-on-year. Our Q2 2019 segment free cash flow was lower than in Q1 2019 as our Equipment and Multi-Client sales were backloaded resulting in a significant $44 million negative change in working capital, which will be recovered over the second half of the year. Cash cost of debt was $40 million in the first half and $33 million in Q2 2019. Cash flow from discontinued operations was negative $74 million in the first half and negative $21 million this quarter also due to an increase in working capital by $14 million on the back of a large proprietary marine project completed over the first half of this year. We will collect related accounts receivable in the third and the fourth quarters of this year. Overall, we anticipate this discontinued operations negative free cash flow, not including the cash costs related to the implementation of CGG 2021 plan, to be not more than negative $25 million in 2019.

The completion of winding down land operations anticipated in October 2019 will also contribute to the improvement of net working capital of discontinued operations in the fourth quarter of this year. Cash costs related to the implementation of CGG 2021 plan were $41 million in the first half and $16 million in the second quarter and are starting to kick in as we continue to streamline our support headcount and costs and wind down our land acquisition business. Our financial position at the end of June remains solid and healthy with liquidity of $441 million, slightly lower than at the end of March.

Looking at group balance sheet on Slide 18. At the end of June 2019, our capital employed was at $2.5 billion, down $100 million from March 31, 2019. Net working capital after IFRS 15 was at $96 million, down from $138 million at March end. Receivables were at $504 million, up from $428 million due to Multi-Client and Equipment sales which were backloaded towards the end of the quarter. And inventories were stable at $204 million. $1.2 billion goodwill, corresponding to 51% of total capital employed and 82% of equity, was flat.

Segment Multi-Client library net book value was $458 million. After IFRS 15, it was $596 million, down from $616 million. Cash prefunding rate was 87% in Q2 2019 versus 106% in Q1 of this year. Multi-Client segment amortization rate was at 67% in the second quarter of this year. And net book value of Marine library was $530 million, and the net book value of Land library was $66 million after application of IFRS 15.

Other noncurrent assets, fixed assets in this slide, were at $603 million, down from $637 million at the end of March. Property, plant and equipment were at $326 million; other intangible assets at $259 million; and other noncurrent assets, stable at 3 -- $33 million.

Shareholder equity and minority interests were at $1.55 billion including shareholders' equity at $1.5 billion and $45 million minority interest mainly related to [Yongfeng] joint venture. At the end of June, group gross debt before IFRS 16 was $1.18 billion. And with liquidity at $441 million, our net debt was $741 million. Before IFRS 16, our net debt to last 12 months EBITDA ratio was 1.2x at the end of June 2019. Group gross debt after IFRS 16 was $1.32 billion, and net debt was $883 million.

Our debt breakdown was as follows: $627 million first lien bond maturing in 2023; $504 million second lien bond maturing in 2024; $47 million of capital leases; and $146 million of operating leases under IFRS 16. Cash generation remains our top priority, and we will continue to operate with this core management principle in mind.

Now I hand the floor back to Sophie for an update on our strategic agreement with Shearwater and for concluding remarks.

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Sophie Zurquiyah-Rousset, CGG - CEO & Director [5]

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Thank you, Yuri. Let me now update you on the strategic partnership we announced early June. Shearwater will become CGG's strategic partner giving access to our Multi-Client to a large and efficient high-end worldwide fleet. This will have a positive impact to the competitiveness of our Multi-Client offering. The strategic partnership with Shearwater also represents an opportunity for Equipment. The consolidation of marine streamer technology from both companies in a 60% Equipment, 40% Shearwater-owned streamer newco will provide to the market a larger range of technologies. We are progressing well on the agreement and expect the closing in Q4 subject to the usual antitrust approvals and work council consultations as per local requirements. I'm really pleased with the progress of our Acquisition exit. We are well ahead of our plans in our Marine strategic partnership. Land acquisition is winding down per plan, contributing to the reduction of the working capital of our discontinued operations. And finally, we have received expressions of interest for our Multi-Physics business.

We received clearance from the French Tribunal of Commerce to go ahead with headcount reductions in France which will allow us to complete the streamlining of our support functions by year-end.

In conclusion, on Slide 21. I am pleased with our results so far this year. We are delivering solid performance, and our cash flow is much improved. We are making significant progress towards becoming an asset-light, people, data and technology company. Our macro environment is consistent with our plans, and we confirm signs of a gradual recovery as upstream project economics, especially offshore, have improved. In this context, we confirm our 2019 guidance.

I thank you for your interest, and we're now ready to take your questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Your first question comes from the line of Kevin Roger from Kepler Cheuvreux.

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Kevin Roger, Kepler Cheuvreux, Research Division - Research Analyst [2]

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Two on my side, please. The first one, maybe it's for Yuri, is related to the cash flow generation. Excluding the movement in the working cap, in Q2, the cash flow generation has been weaker than in Q1 while the EBITDA was above. So I was wondering if you can explain us the movements in the cash flow generation this quarter. And the second question is basically related to your full year '19 guidance, which is based on high single-digit growth for the revenue and an OPINC between $75 million and $125 million. When you look at your performance in H1, plus 23% for the top line, OPINC already at above $60 million. Do you expect the kind of slowdown in H2 for bringing maybe a bit prudence on your confirmation for the '19 guidance, please?

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Yuri Baidoukov, CGG - Senior EVP & Group CFO [3]

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So to answer your first question, in the second quarter, we had higher cash interests than in the first one because on the first lien bond, we pay interest in the second and the fourth quarter. So that might explain this difference.

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Sophie Zurquiyah-Rousset, CGG - CEO & Director [4]

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Okay. So I'll take the question which is -- I think it's essentially that. That's a big number. So in terms of full year guidance, I think I gave you the short answer in the Equipment comments. If you look at the growth, it is very much driven -- I mean, this high double-digit growth is very much driven on the back of the land equipment business. And we benefited in the first half of the year from a number of those MegaCrew sales which we don't have visibility over the second quarter. So we would certainly -- So I wouldn't call it a slowdown, it's just you have in the sales mix a few of those MegaCrews that kind of skew a little bit the underlying growth. So we still expect a healthy growth, but like I said, I don't have visibility into H2 for such MegaCrews.

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Yuri Baidoukov, CGG - Senior EVP & Group CFO [5]

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And in addition to what Sophie just said, if we look at our results in 2018, they were kind of backloaded in the second half of the year, therefore, Q2-on-Q2 and H1-on-H1 growth rates are obviously higher. But if we look at the whole results of 2018 and as we forecast the total results for 2019, of course, the rate will be kind of blended, if you want. So in other words, the lower base of the first half of 2018 is also a contributing factor to the higher growth rate.

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Kevin Roger, Kepler Cheuvreux, Research Division - Research Analyst [6]

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Okay. I understand. So I understand for the top line but maybe for the operating income, $75 million, $125 million, it means that you expect the H1 performance to not be repeated in H2 because you are already above $60 million?

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Yuri Baidoukov, CGG - Senior EVP & Group CFO [7]

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Well, again, in 2019, operating income includes kind of significant increase of Multi-Client amortization with the implementation of the new amortization policy.

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Operator [8]

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Your next question comes from the line of Jean-Luc Romain from CM-CIC Market.

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Jean-Luc Romain, CM-CIC Market Solutions, Research Division - Analyst [9]

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Yes. My question related to $113 million loss from discontinued operation. Can we consider that as a final loss on seismic acquisition?

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Yuri Baidoukov, CGG - Senior EVP & Group CFO [10]

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Yes. That's probably true, yes. So the main element of that, as I explained, was related to the remeasurement of fair value of our equity stake in SBGS joint venture with Fugro.

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Operator [11]

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(Operator Instructions) Your next question comes from the line of Piotr Ossowicz from Ironshield.

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Piotr Ossowicz, Ironshield Capital Management LLP - Senior Analyst [12]

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Can I ask one by one? I have a few of them. So first, as a number of your competitors and other company in the space expressed expectation of the market picking up significantly in Brazil and to a larger extent, in West Africa into 2020, I was just wondering what is your opinion and what you are -- because you're involved in those markets, I was wondering what is your -- what are you seeing now and what is your opinion on the market development in 2020?

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Sophie Zurquiyah-Rousset, CGG - CEO & Director [13]

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Yes. Thank you for your question. I mean certainly, Brazil has been very active in the last few years. And keep in mind that in the G&G side, is what we do, we're sort of early in the cycle. So Brazil has been very busy for the Geoscience business for quite a while. Whereas if you see, for example, on the drilling and the more -- the other oilfield services, it's not been busy. So I think Brazil will continue to be active. I don't necessarily anticipate sort of an increase in activity. There is possibly an increase in competitiveness because all of the clients want to be there, and as a result, all of the service companies want to be there, too. So I don't see there's a pickup, but I see there's a steady, very high activity level continuing.

West Africa, it's a mixed bag, I would say, because not all the country are Multi-Client countries. So it will be -- it has been active in certain countries like Mauritania and Senegal, but it is more of a proprietary market. Other countries are more Multi-Client. We've had -- we've been busy in Gabon, for example. And I think Angola, it has some level of activity. But I certainly wouldn't call it a pickup or high activity level. I mean, we're seeing jobs, for example, recently in South Africa which is more of a proprietary market, too. But I think I would call it a mixed interest in West Africa, not as clear-cut, certainly for us, not playing anymore in this proprietary market.

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Piotr Ossowicz, Ironshield Capital Management LLP - Senior Analyst [14]

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Okay. This is helpful color. Just going back to Brazil, to what extent you're seeing this as being mostly Petrobras market? And to what extent you're actually seeing, well, significant interest or material business opportunity with internationals?

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Sophie Zurquiyah-Rousset, CGG - CEO & Director [15]

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It is definitely becoming a lot more international. It has been Petrobras market up until they really clarified the rules forward. And now there is a lot more transparency, but what the lease runs will be, what blocks will be available, it has driven a high level of interest from the internationals. So if I look at our revenue mix certainly in Brazil, it is very much based on international companies as of now. But Petrobras provides a consistent base business, if you want.

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Piotr Ossowicz, Ironshield Capital Management LLP - Senior Analyst [16]

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And on -- and last one on Brazil, but to what extent do you see delays in Petrobras decision-making? I think there've been a lot of hopes on more material demand from the services materializing from Petrobras, and Petrobras is still in the deciding mode.

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Sophie Zurquiyah-Rousset, CGG - CEO & Director [17]

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I have to say that from our viewpoint, we've not seen much of difference in behavior in the last few years. It's -- they've -- of course, they've been like all of the oil companies. They're more stringent of the CapEx spend through the lower years of the downturn. But certainly, they've bought our Multi-Client data throughout, and we have a very good relationship with Petrobras. Now maybe you're referring to IBAMA, which is the environmental agency that gives the permitting. In that agency, actually, we're not seeing any changes. It's been difficult to get permitting, and that's not new. As if I recall, one of the surveys we were awarded back in '13, it took us 2 years to get the permit. So it is difficult, but it is maybe more apparent as you have more international companies now playing in Brazil that you're hearing more about it. But there's nothing new, and there is a little bit of hope that the new government would change that, and it is not the case. So permitting continues to be difficult.

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Piotr Ossowicz, Ironshield Capital Management LLP - Senior Analyst [18]

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Okay. Understood. Just moving onto Equipment market. Obviously, very strong result this quarter. You mentioned that you do not have visibility on MegaCrews in the second half. But can you comment what are those -- whether you are seeing this MegaCrews order as a one-off, or in general, there are drivers that would substantiate potentially more of them coming not necessarily this year but into 2020 and beyond?

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Sophie Zurquiyah-Rousset, CGG - CEO & Director [19]

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I mean, definitely, the driver is the end client. And the end clients are the Middle East national companies. And if you'd track the number of crews or seismic crews that they've had, it certainly has gone down by significant numbers through the downturn, but it's picking up. And Abu Dhabi is the first one sort of to pick up with this mega contract awards that you've heard about last year of $1.6 billion. But we're seeing equally trends of activity picking up in Oman, picking up in Saudi Arabia. So certainly, as those NOCs increase their need to identify new reservoirs and continue to cover the countries with seismic data, that will drive the requirement for new MegaCrews and in turn, for new equipment because, often, they will give long-term contracts, typically 2, 3 years. And they will require for those contracts new equipment, and that definitely drives the sale of new equipment. So yes, there will be more of those moving forward, but I don't have a clear timing of it.

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Piotr Ossowicz, Ironshield Capital Management LLP - Senior Analyst [20]

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Okay. Understood. And lastly, on the cap structure, can you please give us an update on where you are in terms of obtaining an RCF? And what is your recent thinking about refinancing the bonds?

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Yuri Baidoukov, CGG - Senior EVP & Group CFO [21]

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So we're still obviously thinking about when will be the best time for us to refinance. It will not be this year. And equally, as we previously discussed, we did reengage with commercial banks as well, and we're working on bringing back RCF facility in place in conjunction with future refinancing.

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Piotr Ossowicz, Ironshield Capital Management LLP - Senior Analyst [22]

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Okay. So you're thinking that the RCF would be obtained, that it will a single process? It wouldn't be that you first -- or you firstly get the RCF and then you refinance?

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Yuri Baidoukov, CGG - Senior EVP & Group CFO [23]

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We see it more exactly as a package, if you want, right, because that's -- refinancing is a good way to incentivize the banks to participate on both sides, right?

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Piotr Ossowicz, Ironshield Capital Management LLP - Senior Analyst [24]

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Clearly. And do you anticipate this as this year's event, or it's going to take a bit longer?

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Yuri Baidoukov, CGG - Senior EVP & Group CFO [25]

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No. As I said, we don't envisage it this year. And it's quite obvious because, obviously, with a 20% call premium related to the second lien bonds which comes down to 12.5% in March of next year, there's no point for us doing it this year.

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Piotr Ossowicz, Ironshield Capital Management LLP - Senior Analyst [26]

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All right. But then should we be thinking next year after the call premium steps down?

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Yuri Baidoukov, CGG - Senior EVP & Group CFO [27]

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Yes, that's our line of thinking, yes, and we're thinking at even broader refinancing.

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Operator [28]

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(Operator Instructions) There are no further questions. Please continue.

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Christophe Barnini, CGG - Head of Group Communications & IR [29]

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Okay.

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Sophie Zurquiyah-Rousset, CGG - CEO & Director [30]

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Okay? Well, thank you very much for attending the call, and we will be in touch in the roadshows in Paris and London.

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Yuri Baidoukov, CGG - Senior EVP & Group CFO [31]

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Thank you.

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Sophie Zurquiyah-Rousset, CGG - CEO & Director [32]

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Thank you.

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Yuri Baidoukov, CGG - Senior EVP & Group CFO [33]

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Goodbye.

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Sophie Zurquiyah-Rousset, CGG - CEO & Director [34]

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This closes the call.

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Christophe Barnini, CGG - Head of Group Communications & IR [35]

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Have a good day.

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Sophie Zurquiyah-Rousset, CGG - CEO & Director [36]

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Have a good day.

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Yuri Baidoukov, CGG - Senior EVP & Group CFO [37]

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Have a good day.

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Operator [38]

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That does conclude our conference for today. Thank you for participating. You may all disconnect.