Geoscience specialist CCG will reduce its fleet of eight seismic survey vessels to five by the end of this quarter to cut costs and refocus its activities on its “high-added-value geoscience businesses”.
The NYSE-listed survey company says it will continue to operate an additional 3D seismic vessel (Amadeus) as part of its Asian joint venture with PetroVietnam, which was established in 2010.
CCG has reduced its fleet from 18 vessels in 2013 to eight vessels at the year-end 2015, which has helped cut its marine costs by 64%. It also laid off 3,700 employees during the same period.
“2016 will remain difficult with a very weak start of the year. In this context, the group is resolutely implementing its Transformation Plan, particularly with the reduction in its fleet to five vessels by the end of the first quarter of 2016,” Jean-Georges Malcor, CGG’s CEO, said in a release today.
“Contractual Data Acquisition will gradually decline to less than 15% of group revenue, while [the Geology, Geophysics & Reservoir division] will represent more than 60%. By implementing very rigorous cash management, we target a net debt of less than $2.4bn by the end of the year.”
