Thread regarding CGG Veritas layoffs

How the he-l???

We are not making any money despite the data processing being done.
We have a massive amount of debt which is not going down.
We continue to spend money we do not have.

HOW ARE WE STILL IN BUSINESS?

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Post ID: @OP+1aMwyzkR

7 replies (most recent on top)

CGG is carrying legacy debt from the days when they delivered the full suite of seismic services and products. I recall many years when one business bailed out another (Sercel and land) to deliver OK results. They still carry the debt but now only have imaging which is never going to deliver the ROI needed to pay off the debts.
I don't think this is a problem with under performing managers in one site, but a more fundamental problem with the portfolio of services provided,

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Post ID: @Amjq+1aMwyzkR

CGG needs to restructure. Too many managers and team leaders doing nothing, not billing and being just an expensive overhead

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Post ID: @Aken+1aMwyzkR

CGG lost the ability to make sizeable profits (or losses) when they left acquisition. Focussing on processing with all the legacy debts was always going to be challenging to repay and isn't improving.
The industry hasn't provided a platform for profitability for at least 7 years and shows no signs of improvement. I'm not investing and i'm out !

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Post ID: @oolh+1aMwyzkR

Propped up by the French government in contravention of EU rules

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Post ID: @asja+1aMwyzkR

Maybe holding out for 2022 when the covenants expire and they can downsize/shut Massy and move HQ to Houston?

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Post ID: @3xvo+1aMwyzkR

CGG has not made a profit for years (apart from one quarter after financial restructuring). The reason it is surviving is because there are investors who are willing to take a high risk gamble (buying CGG issued notes). If the economy picks up and the oil price rises and stays up the oil companies will expand exploration. CGG will eventually make a profit, investors will benefit and CGG may even pay back some debt instead of somehow persuading other investors to delay their calls. But many previous investors have lost money and the current investors' patience cannot last forever.

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Post ID: @2ugj+1aMwyzkR

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