CGG - comment

CGG had a strong Q1 with Revenue/EBITDA and cash flow all beating our model. The pull to par in the bonds will continue. However, as we have said before, we do not see a refinance before 26Q1. Increased Capex from the large oil companies drove the improvement (particularly in Data). We expect the division to deliver a better-than-forecast 2024. Limited visibility in the manufacturing (SMO) business meant no increase in overall company guidance yet. Management is not yet convinced that the strong Land segment deliveries in SMO in Q1 will continue for the rest of the year. Also, CGG is looking at an unspecified acquisition of Library assets, partly funded by a $30m litigation settlement in India. If the Data acquisition doesn’t happen, CGG has said it may increase the bond buy-backs.