March 6, 2020 / 6:45 AM / a month ago

CGG eyes lower 2020 revenue growth, flags limited coronavirus hit

March 6 (Reuters) - French oil services group CGG expects its segment revenue growth to slow down in 2020, it said on Friday, assuming a limited effect from the coronavirus.

“We continue to monitor the situation and potential impact on our business as our clients might re-evaluate their plans in the context of oil price volatility,” the company said in a statement.

The price of crude oil fell to multi-year lows in February on concerns that the coronavirus outbreak will limit economic growth as the number of infections have climbed above 98,000 globally, which could impact investments made by oil and gas companies, CGG’s primary customers.

The company, which provides geophysical services and equipment, said it expected mid-single digit segment revenue growth this year, compared to a 2019 increase of 14% year-on-year to $1.4 billion.

The company’s segment operating result swung to profit of $247 million in 2019, beating its own guidance of $200 million from September. ($1 = 0.8909 euros) (Reporting by Milla Nissi in Gdansk; Editing by Christian Schmollinger)

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