CGG to cut Vessel Fleet Further

French seismic group CGG said on Thursday it would further cut its fleet of seismic vessels after declining demand from oil and gas clients hit by the falling oil price led it to record an impairment and one-time charges of $643 million in the fourth quarter.

Like peers across the oil services industry, CGG has been badly hit by cutbacks in the sector in 2014 as major producers slashed exploration to counter oil prices that have more than halved since June.

"Taking into account the reduced client activity due to the very strong fall in oil prices at year-end and in line with our portfolio rebalancing strategy, we have decided to further reduce our fleet to 11 vessels in 2015," Chief Executive Jean-Georges Malcor said in a statement.

The group had already cut its fleet to 13 from 18 seismic vessels last year.

Before non-recurring charges, earnings before interest and tax (EBIT) came in at $69 million in the fourth quarter, down from $73 million a year ago.

It also announced an additional cost reduction plan and a further 25 percent capital expenditure cut for 2015.

Reporting by Michel Rose