Geowave Voyager
Built about 9 years ago at 120million not including acquisition kit costs
Sold for 17 million including kit
A quite frankly stunning loss that cheaply allows a competitor a stronger market foothold undermining CGGs future competitiveness.
Most of seismic crew on GVO has been lay off.
The enabler of business is profit margin, correct.
Profit is not achieved by flogging assets.
A bad decision point made by those remaining employees.
If you lose the best people, the slackers left behind make any old decision without thought or reason. What's missing in CGG these days - intellect.
Congrats, software sales profitable, but then 20% profit off minimal revenue will only keep your job safe and pay for new stationary - Well done.
It will have nil point impact on CGG health.
Actually, one of the profit sources for CGG today isn't seismic processing or acquisition, it's software sales and the associated reservoir analysis.
You tell too narrow a tale @U6mWTOM-6jpw
In the last twenty years the company has had times when it has been 'kept going' by Sercel, by Marine, by Processing and, particularly now, by Data Library.
The enabler of business is profit margin, but its point is its employees.
Whoever commented that the processing was cheap must be a French works at Massy! Low performance and high cost overall! :)
The whole point of business is profit margin! Acquisition is a hit or miss based on current year’s business environment. On average, it’s a sure loss for a company at CGG’s size. Processing, Houston center processing to be more precise, is the ONLY reason why CGG is still floating.
Stop complaining about the past glorious days and start bending over backwards, 13 hours a day, 7 days a week to ensure your paycheck. Seismic is a commodity now. Make sure you are contributing uniquely in your line of work.
Again, sorry for my French!
You find in the quarterly/annual statements the 120m depreciation of this vessel plus equipment then we'll find an investor who see this as a great strategic decision and is smiling!
Fair comment, looks like they are selling off the "family silver", not sure why? Maybe the original investment was written off & this seems like "good business"?
CGG main revenue source is acquisition. Processing is cheap, therefore processing margin is a pathetically small number compared to acquisition.
Schlumberger wanted seismic to complete it's offering, seismic contribution is small compared to the rest of the company. Take seismic acquisition out of Schlumberger has minimal effect to the bottom line. Take a boat out of CGG, damages the bottom line for all time.
Ie, even in bad times, giving away the assets is a financially unrecoverable future position.
Maybe CGG's following the Schlumberger route, getting rid of seismic acquisition vessels & concentrating just on processing?
Seabird Exploration.
Who bought the vessel.....???