Good day and thank you for standing by. Welcome to the CGG First Quarter 2021 Results Conference Call. Your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to CGG Management.
Please go ahead.
Yes. Thank you. Good morning, ladies and gentlemen. Welcome to This presentation of CPG First Quarter 2021 Results. The call today is hosted from Paris where Ms.
This is Sophie Dzhokhia, our CEO and Mr. Yuri Baiducotte, our CFO, will provide an overview of the Q1 End of the full year 2021 results as well as provide comments on our outlook. As a reminder, Some of the information could be in forward looking statements, including without limitation statements about CDG plans, strategies and prospects. These forward looking statements are subject Following the overview of the quarter, we will be pleased to take your questions. And now I will turn the call over to Sophie for the presentation of our Q1 results.
Thank you.
Thank you, Christophe, and good morning, ladies and gentlemen, and thank you for participating in this Q1 2021 conference call. CDG was founded in 1931 and we are celebrating this year 90 years And you'll see us communicate our 90 amazing years through the year. So I'll start on Slide 5 with general comments on our Q1 2021. We experienced a continuation of the same COVID early recovery market conditions that we saw in late 2020. These were marked by low, but fairly stable industry spending.
On one hand, the majors maintained a capital discipline, while National Oil Companies and Large Independent remained more active. As economies continue to recover from the pandemic, which is expected to be more gradual and complex than the downturn, I believe we will see the need for our clients to increase their activity to not only catch up on the work postponed from 2020, but also to compensate for the depletion of their existing reservoirs. In that context, CGG's high end technology will be a key component of the value Moving forward. Our Q1 as anticipated was a slow quarter following the historical low levels of 2020 With soft GGR activity offsetting excellent performance in equipment. Our 3 businesses of Geoscience, MultiClient and Equipment All have different business models and drivers.
Geoscience performed per our expectations based on the backlog that they generated in Q3 MultiClient performance depends on the level of ongoing multi client programs and that's the pre funding And on the commercial sales of our existing data library, that's the aftersales. The first quarter see an increase in constructive conversations for both new projects and aftersales during the quarter as oil prices strengthen and have maintained at higher labels than expected going into the year. Equipment was very busy in Q1, shipping orders to the Middle East, Following strong activity around the end of 2020. Also during the quarter, we completed our restructuring plans with the successful refinancing of our debt. And going forward, this substantially reduces our interest rates and provides us with the flexibility to repay portions of the debt as our cash flow generation will allow.
With this, we can now focus on our business and strategic developments with a normalized capital structure. Moving on to the next slide for the Q1 2021 financial highlights. So our Q1 revenue of $213,000,000 was down 21% year on year from a high 3 COVID 1st quarter in 2020 with an unusual mix of business as equipment represented 53% of our total revenue. Group adjusted segment EBITDA was $39,000,000 with a 19% margin, mainly due to the business mix. Segment free cash flow, including $73,000,000 of positive change in working capital, was $60,000,000 And the net cash flow this quarter was positive at $28,000,000 I'll now cover our Q1 2021 operations by reporting segments.
So the GGR segment revenue was low this quarter at $100,000,000 down 49% year on year, which resulted in a 31% adjusted EBITDA margin. Moving on to the Geoscience business indicators. Q1 Geoscience external revenue was $66,000,000 down 29% year on year as it continued to deliver its backlog. After a year of drastic spending cuts, our clients' priorities in Q1 remain mainly on development projects. It appears that Dioscience has reached the low point in the cycle as commercial activity and contract awards increased in March, Especially in North and South America, backlog as of April 1 stands at 240,000,000 We have adapted our cost base to market conditions, while maintaining the capacity required to capture the growth in the second half of the year As the market continues to gradually recover.
Also during the quarter, we strengthened the foundation of our new growth beyond the core initiatives In line with our ambition, I will speak more about this growth beyond the core initiatives later in the call. If we look at Geoscience Operational highlights, which should be on Slide 10. I've been commenting around the growing importance of ocean bottom nodes as a technology that can provide the data required as input For high end processing to image the subsurface in high definition. Today, most of the applications Of note technology are around reservoir development and management, but we're seeing increasing use for step out exploration and Appraisal in Complex Subsurface Environment. This trend is clearly seen in our order intake as 32% is now related It is also a reflection of our clients prioritizing production work versus exploration And of our leading market share in OBN processing, where we tend to win over 2 thirds of the projects on a recurring basis.
As IOCs have maintained the capital discipline thus far in the COVID recovery market, I also want to highlight the increasing importance of national oil companies in our revenue mix. In Q1, they accounted for almost a third of our revenue. This trend is geographically diverse With projects coming from in around the world, Brazil, Mexico, Norway, Middle East and Asia, as we enjoy stable long term relationships with this group of clients. Moving on to MultiClient. Q1 2021 MultiClient revenue was $34,000,000 down 67% year on year.
Q1 2020 was an unusually strong Q1 supported by an active market with several ongoing projects. MultiClient cash CapEx was also low this quarter at $30,000,000 down 56% from Q1 2020, As we only had 1 marine multi client program active, which was offshore Brazil. In Q2, we will have 2 vessels working on multi client As we have commenced work on a 5 month 3 d multiclient program in the Norwegian North Sea, in addition to our ongoing Brazil project. The vessel is expected to acquire around 8,000 square kilometer of 3 d data in the North Viking Graben In a direction perpendicular to our existing data set, our clients were impressed by the uplift that High end imaging can bring to this additional data and recognize the value that this provides for the management of their existing reservoirs. MultiClient after sales were low at $19,000,000 this quarter as we have a number of significant opportunities that shifted to later in the year.
It's worth noting the emergence of new private equity backed players, especially in the North Sea that need to buy data to develop their plants And Axis Acreage. Moving on to Slide 12, a large part of our multi CapEx for the quarter was invested in Brazil, and I would like to update you on the CGG footprint in the prolific presold area. Brazil at current together with Norway is one of the most attractive areas of the world for E and P companies Aiza presents some of the best opportunities and economics. Over the years, we've built a substantial industry unique Hi, Anne Contigo's 3 d seismic data library offshore Brazil, which enables our clients to develop both Regional and local understanding of the subsurface. This has been complemented by our geology and well packages that enable new entrants to access trusted and valuable data and insights very quickly.
In addition to our ongoing Nebula acquisition, we have a number of ongoing We have a number of ongoing reprocessing projects that will benefit from our latest processing innovations. Our presence offshore Brazil in the Santos and Campos basins was extended by 23% in the last 3 years, And we are currently looking at new ocean bottom nodes programs as they together with our leading imaging technology Represent the next level of uplift that will enable our clients to unlock new value of their reservoirs in this prolific basins. We believe that our deep knowledge of offshore Brazil combined with our extensive pre salt data and our preferred imaging technology will continue to deliver Let's move on to equipment now. Equipment segment revenue was strong this quarter at $112,000,000 up 52% year on year And heavily weighted towards land as marine acquisition companies continue to delay investments. Equipment adjusted segment EBITDA was $16,000,000 and Equipment Adjusted segment operating income was $8,000,000 a 7% margin.
Moving on to Slide 14. In Q1, equipment delivered over 125,000 LAN channels And 50 vibrators worldwide, primarily for large mega crews in Saudi Arabia. Sussal also delivered wingland notes to new clients. Marine equipment sales remained low during the quarter, essentially being for spare parts. We released a new technology called Pixel, which is an integrated and compact solution that enables high resolution seismic data acquisition in targeted areas Offshore Construction and Field Development.
I would also like to highlight the excellent operational performance of SurCell In total, this represented the deployment of over 160,000 channels of 508 Crosstrek And more than 80 nomads, 65 NEO old terrain vibrated to Saudi Arabia in 5 months. Despite the numerous challenges imposed by the pandemic, we were able to meet all of our delivery, logistical and system commissioning targets. The 2 3 d megacrew surveys in Saudi Arabia met their startup dates and have been reporting outstanding productivity levels From the very start of operations, with more than 10,000 VPs recorded based on 12 fleets of 2 vibrators on day 1. Let me now give you a few comments on beyond the core businesses On Slide 15. At CGG, we have a long history of supporting the geothermal, CCUS, Earth Monitoring and Digital Geoscience Businesses Through our leading geoscience data and expertise, satellite mapping business, cell sensor technology and solutions, Multi physics processing, geoscience and data science technology and our CDG cloud, which is now well over 2 50 petaflops of compute power And 250 Petabytes of Storage.
With the global acceleration of 3 key trends, energy transition, Environmental awareness and sustainability, along with digitalization, CGG is well placed to expand its business in this rapidly growing areas As they are very near step outs from our core. During the quarter, we continued to strengthen these growth beyond the core initiatives, which are focused around digital geoscience, monitoring and observation and energy transition. In these areas, we are advancing our And I am particularly pleased with our Decarbon X strategic agreement that positions us for the assessment Geothermal and underground CO2 and Energy Storage Opportunities in the North Sea. We now comment on Slide With the Data Hub. As part of our growing portfolio of beyond the core products and services in the digital geoscience domain, We have developed a complete offering to support our clients' digitalization agendas.
With DataHub, CGG provides the tech solutions Required to transform and enrich customer geoscience data into structured, decision ready information. It is based on our extensive geological knowledge, advanced machine learning technology and unique taxonomy, And it enables the classification of diverse geologic data in a meaningful and consistent way. With DataHub, Our clients' geoscience teams can be more efficient and focus their time on value add activities. We have completed multiple successful pilots IOCs, NOCs and independents and are in discussions at current for longer term commercial contracts. I look forward to providing you with further updates as this tech solution continues to mature.
Moving on now to CSCO on Slide 17. Recently, we also launched CSCOPE, an innovative pollution monitoring tech solution As part of our growing portfolio of products and services for environmental application, it combines expertise in remote sensing science, Earth observation data, machine learning and high performance computing. CSCOPE provides critical sea surface all slick intelligence For a range of industries, to better understand and minimize risks for offshore assets, coastal facilities, Vessel Activity and the Natural Marine Environment. With Seascope, our clients can proactively establish production water baselines, Rapidly detect anomalous events and determine the source whether from natural seeps or from third party pollution. This is one of the tech solutions that we are developing for the environmental geoscience space, enabling more sustainable operations.
I will now give the floor to Yuri for more financial highlights.
Thank you, Sophie. Good morning, ladies and gentlemen. I will comment the Q1 financial results. Starting with Slide 19, Q1 2021 P and L. Looking at the consolidated P and L for the Q1 of 2021, segment revenue amounted to 213,000,000 Down 21% versus Q1 2020, which was the last pre COVID crisis quarter.
GGR revenue was $100,000,000 a 49% decrease year on year with a low 47% weight. Geoscience revenue was $66,000,000 down 29% year on year and multiclient sales were at 34,000,000 Down 67% year on year on significantly lower CapEx and delayed after sales. Equipment revenue was $113,000,000 up 52% year on year with larger than usual 53% weight. Segment EBITDA was $36,000,000 and adjusted segment EBITDA was $39,000,000 with a 19% margin Due to this unfavorable revenue mix, our margin was further reduced by negative impact on profitability of equipment, Which came from adverse effect on euro based net P and L exposure, revenues minus costs, With significant depreciation of euro versus dollar from $1.11 a year ago to $1.22 this quarter And unfavorable product mix with delivery of more than 50 lower margin vibrators. Segment operating income was negative $11,000,000 And adjusted segment operating income was negative $12,000,000 Cost of financial debt was 34,000,000 Including a non cash PIK component of $12,000,000 Net loss from continuing operations was $92,000,000 Including $40,000,000 of costs related to refinancing, net income from discontinued operations was positive at 11,000,000 And group net loss was $81,000,000 Looking at Slide 20 simplifies the cash flow.
Segment free cash flow in Q1 2021 was $60,000,000 including positive change in working capital and provisions of $73,000,000 on decrease in equipment inventories and collection of receivables from Magro Peru deliveries in Saudi Arabia and collection of year end receivables in MultiClient business. It included MultiClient cash CapEx of 30,000,000 Down 55% year on year as well as industrial CapEx and R and D costs in our geoscience and equipment businesses of 12,000,000 Which decreased 43% year on year. Cash cost of debt was $7,000,000 and lease repayments were 15,000,000 Net cash flow from discontinued operations was positive $1,000,000 Cash costs related to the implementation of CEG 20 21 plan were at $11,000,000 Overall, net cash flow was positive at $28,000,000 increasing by 65% year on year And significantly improving from Q4 2020, which was at negative 95,000,000 Moving to Slide 21, Group balance sheet and capital structure. Our liquidity at the end of 2021 increased to $407,000,000 and remained solid. At the end of March 2021, our gross Debt was at $1,394,000,000 or $1,252,000,000 before IFRS 16 with the following breakdown: $628,000,000 first Lien Dollar and Eurobonds due in 2023, dollars 584,000,000 second Lien Euro and dollar bonds due in 2024, dollars 40,000,000 other items including accrued coal premiums and interest related to refinancing And $142,000,000 lease liabilities, including $39,000,000 of Gredel Financial Lease and 103,000,000 Operating leases under IFRS 16.
At the end of March 2021, our capital employed was at 2 $700,000,000 down from $2,170,000,000 at the end of 2020. Net working capital after IFRS 15 was at $123,000,000 decreasing from $212,000,000 at year end. Goodwill was stable at $1,190,000,000 corresponding to 57% of total capital employed. MultiClient library net book value After IFRS 15 was at $495,000,000 including $425,000,000 of marine and $70,000,000 of land net book value. Other assets were $408,000,000 including $248,000,000 of property, plant and equipment, Down $20,000,000 from year end and $144,000,000 of IFRS, 16 right of use assets, of which $39,000,000 related to Belireo Financial Leases also $143,000,000 of other intangible assets And $17,000,000 of other non current assets.
Other non current liabilities were at $136,000,000 down $13,000,000 from year end. Shareholder equity was at $1,090,000,000 including $47,000,000 of minority interest mainly related to Yinfeng JV. Moving to Slide 22, debt refinancing. The main subsequent and very important event In the Q1 was our successful refinancing of old debt, which closed on April 1. With this refinancing, We delivered the last milestone in our CDG 2021 strategy and normalized our capital structure by issuing new Senior secured notes of $1,200,000,000 equivalent in euro and USD And bringing back $100,000,000 revolving credit facility.
As a result, we have also reduced cost of debt with a blended Extended maturities to 2027, achieving 6 years for the first time, secured the flexibility to repay up to 10% $120,000,000 per year during the non call period of 3 years and introduced ESG linked RCF, Aligning capital structure terms with CDG's sustainability objectives. While we provided full refinancing costs and accrued interest in Q1, The full accounting impact of this transaction will be reflected in our balance sheet in Q2. Now I hand the floor back to Sophie For an outlook for 2021 market environment and our financial guidance.
Thank you very much, Yuri. Now we're on Slide 24. Looking at the market today and the near term outlook, the majors have reemphasized their capital discipline as part of their Q1 results. This is in line with the early COVID recovery market that we are experiencing. The national oil companies and large independents remaining more active And given the fairly strong oil price recovery that we are seeing during the quarter and the volume of delayed activity from 2020, I believe we will see increasing spending going forward, particularly in the second half of the year.
We consider our Geo imaging technology will continue to play a key role as clients make decision about their investments. We have a leading position in OBN Field Development and Production, where the benefits of OBN technology are more pronounced. We also anticipate demand for our multi Equipment after lower Q2 should deliver a solid H2, driven mainly by continued activity in the Middle East. In this context, we confirm our 2021 financial objectives. With our successful refinancing, We delivered the last milestone of our CGD 2021 strategy and normalized our capital structure.
We are now actively developing our CGD 2020 4th strategy, which is focused on growing our core highly differentiated businesses as the market gradually strengthen And accelerating our growth beyond the core initiatives into the rapidly growing digitalization, observation and monitoring and energy transition markets. We will present you our updated strategy and ambitions during the Capital Market Day, which is planned for November 5, 2021. I hope to meet all of you, maybe even in person very soon, and I look forward to our further discussions. So thank you for your interest, and we're now ready for questions.
Thank Your first question comes from the line of Nick Konstantakis from Exane. Please ask your question.
Yes, good morning, guys, and thank you for taking my questions. I've got a few, if I may, please, and I'll start with Yuri and the refinancing. I think the rate was slightly higher than anticipated, but I think it's quite positive you can repay up to $120,000,000 per year. Do you intend on exercising that option? And how do you intend to finance the process that you have to cover there?
Secondly, I was wondering if you could give us some color on the on your exploration exposure in Norway. I think one of the parties there Contending the current law, which gives the tax offset to for exploration. So I was wondering trying to get an idea of the potential impact on the business. And lastly, Sophie, I don't want to run too much ahead of myself and make you spoil or give too much away on your November CMD. But I would like me to discuss your carbon capture and storage exposure, please.
There's a few projects Kicking off there, obviously, I was wondering, are you participating in the tendering? And what do you think could be your addressable market, SCGG, there?
Thank you and good morning, Nick. So let me start with refinancing. Yes. Unfortunately, the rate that we secured was not as low as we anticipated. And obviously, one of the reasons for that It was the unfortunate downgrade by SMP, who took a contrarian view on the future of recovery of Oil and Gas Industry and in particular in peak CapEx, so that probably cost us In the range of 50 bps to 75 bps.
But that being said, we do consider our refinancing very successful given obviously The market environment, given the fact that the quantum of the debt was quite high, dollars 1,200,000,000 And also given the fact that we were oversubscribed by 2.2 times. So With that, you're absolutely right. We did manage to secure this flexibility of repayment Of up to 10% of the total issuance during the 1st 3 years of non call period, And we intend to use it, but of course it will depend again on The speed and pace and profile of recovery in the industry and with that, our revenues and Cash Generation. And but we do have this flexibility, of course, and We'll be closely looking at it throughout the year. With that, am passing it to Sophie to answer the 2 other questions.
Yes. Thank you, Nick, and good morning. So your question to exploration I'll first make a general statement. The last 3 years, we've avoided any pure exploration investments in our new MultiClient. We've been quite vocal about the fact that we wanted to position our survey on mature areas and discovered areas, which we have done.
And if you look at the case of Norway, we've actually invested in large contiguous survey covering mature areas. So most of the work that the clients are doing in our surveys is to find step up exploration and to optimize the production of their reservoir. So I'd say we pretty much have no or very little exposure to that exploration. So that's the Norway one. The on the CCUS, it's early days and that market is not fully matured.
What we think we could do in that There was actually a very good report written by Exane. You did that? Okay. Excellent report, by the way. And you were spot on saying there's 2 areas that we will participate in.
1 is the geoscience side, the understanding of the subsurface And the second one will be the monitoring. Once that carbon is stored underground and you'll need with our sensors And our equipment division will be able to provide that part of the value chain. Now it's a little early days and that Decarbon X is Part of that exercise in making and developing partnership and alliances so that we can become the preferred partner in that space. But Just as a data point that might be of interest, we are starting to make quotation for a multi client data with for companies that are aiming To identifying those reservoirs where they could be storing energy, I mean, carbon and energy at large. So we're starting to see a little bit more activity, although it's not yet very significant for us.
It does depend on how fast that market
Your next question is from the line of Kevin Roger from Kepler. Please ask your question.
Good morning. I'm sure you're doing well. Thanks for taking the questions. I have 3 actually. I was wondering in the U.
K. Client activity, Sophie, you say that basically you have some expected revenue that have shift from Q1 to Q2 and H2. I was wondering if you can precise a bit of magnitude The second question is related to the business in the U. S. With the new administration.
I was wondering if you can provide us An update on what you see and what you expect with the new administration and the recent decision that they took? And the last one is related to your disposal. I was wondering if you could make an update on the potential disposal of Shell Software.
Sure. Thank you, Kevin, and good morning. So generally, in the multiclient activity, we started the quarter Quite softly. Q1 is typically a slow quarter, and we didn't have the Point of starting the Q1 really well identified opportunities. When we started going into the end of the quarter, There were more tangible conversation with numbers and quotations being given to clients.
Although when I look at that list, which is encouraging because we do have a list of large quotations that we've done, It's not clear whether we'll land them in Q2 or in H2. And the orders of magnitude are such that we still believe we can make the year For multi clients. So I'm not sure when they will happen, but we are well positioned in Brazil, which is again attracts Huge interest, Norway. There are the APA rounds, where sometimes we manage to Record the get the uplift in Q1, and this year, we believe the uplift will be in Q2. The other data point perhaps that would be useful that we think definitely Q2 will be way better than Q1 And we'll be better, we think, as well than Q2 last year.
If you remember, Q2 was the first post COVID A quarter where clients really put the brakes on any spending. So there will be some level of catch up in Q2, but we do think I do think there will be an acceleration So I'll make a comment that might be useful for the rest of you who are listening As I do think that the current run rate of spending of the clients today is well below their planned spending levels for the year. Most of them have said that they will be flat to slightly up after the year. So if you look at where they've been spending in Q1 and while they've been Kind of that run rate that if they continue doing the same in Q2 as they're being cautious, they will need some significant level of acceleration, which In the order of 30% acceleration from H1 in H2, if they're going to be spending a flat E and P CapEx from last year. And that's what we're sort of expecting to see happen.
I think there was another question, sorry, on the business in the U. S. I'm assuming that question is more on the Sure. Sais and the moratorium. We don't have a lot of visibility.
Right now and I'll give you some data points. What we're seeing, obviously, slow activity on anything that's around exploration. And there isn't any lease rent planned for this year. However, we still see continued activity From those clients that have established production in the Gulf of Mexico, no surveys and then they're remaining quite active. And what we're seeing as well is that we're getting the permits.
So they are the administration is giving the seismic permits for acquisitions. So those are positive. The other data point I can give you is there are conversations with clients that are still interested in Accessing some of our stack size data, for example, which is considered to be in a frontier area. So that there is still interest in the Gulf of Mexico and more particularly from the clients that already have an established Production in the Gulf of Mexico. Perhaps a quick comment on the land side.
Land is fairly quiet. We're not planning on any new projects. Right now, we're looking at more reprocessing, some more light investments, but we've not launched any project this year. And then we'll wait to For the business to recover to make investments in the land side. Disposal, Yuri, perhaps you can make some comments.
Sure, Kevin, and good morning. So on the disposal side, yes, we continue actively working Several disposals that we discussed last quarter. So one of them is well known. This is our geoscience business, so sorry, geosoftware business, excuse me. On that front, we're making very active progress, and we hope to bring some news Relatively soon.
That's as far as I can see right now. With regard to the other projects On multi physics, we finally managed to secure almost all Related government permits from the U. S, and we're very confident that This transaction will be fully closed by the end of Q2. And then on other disposals, again, we're making very good progress On the Galileo Building CLNG deck, which we expect to close latest early Q4. And of course, we continue to market 49% stake in our gas joint venture in Saudi.
So I'll add one thing, Kevin, on the GEO software. We're actually quite pleased with the value that has been offered by the That's been put forward, let's say, by the various proposal. 1 could have expected that given the current how the valuations in the OFS Have been affected that perhaps the value we could expect would be much lower. And actually that business has sustained quite well. And we're getting and we're quite pleased with the kinds of offers we're getting.
It's not done yet, but at least it's encouraging.
Okay. Okay, very clear. Thanks a lot for all those information. Have a good day.
Your next question comes from the line of Christopher Maloufyan from Carnegie. Please ask your question.
Good morning. In relation to their Good morning. Good morning. In relation to their cell, is it fair to assume that all the equipment So the has been delivered now by end of Q1 or will there still be some deliveries in the second quarter?
Yes. Hi, Christopher. So for the Middle East equipment, it's been pretty much all delivered. And that's why I mentioned that Q2 will be sort of a bit of a lower quarter because we won't have like the strength of The deliveries that were sort of between Q4 last year and Q1, and we will not have yet some of the large orders with That we're expecting for Q3 and Q4, and that's why I mentioned a bit of a lower quarter and then recovery in the second half of the year. But we'll continue I think the business will be essentially supported and sustained by the land side On the in the second quarter, of course, the Q3 that we do expect to make some significant node sales.
You also are calling the trough for geoscience. But with regards to the recovery there, do you expect a gradual recovery from the level in Q1 or a stronger improvement?
Geoscience typically doesn't see large swings like we could see in MultiClient. It is a more of a slow moving. And if you remember how it gradually decreased through and I had mentioned that it will continue decreasing through H1. So that is it never moves either way very fast. So we're saying like kind of we're at that low point, Meaning that we're starting to see signs of a gradual recovery, but it will be slow recovery based on the backlog.
So I do expect the second half will be sort of second quarter will be sort of similar to slightly up, And then we'll see some acceleration in the second half of the year. That's what our current base plan is based on the backlog.
Final question. With regards to the initiatives you are doing beyond the core like C scope, When you book revenues from these businesses, where will they be booked in your account?
So right now, we're not separating, but we intend to start doing so. And The way we started to, I would say, nurture and develop those businesses are within each of the business lines, so Within new science, within MultiClient and within equipment, just because they are not large enough to be self And they do need the support of the rest of the organization. And we hadn't historically separated them out So identifying them. But obviously, moving forward, as we're going to start putting targets of growth and wanting to communicate more on that and Having those businesses take a more significant part of our revenue, it's part of the work that we're doing for the Capital Market Day is starting to know where we are, Which I do expect in the sort of few percent, like 3% to 5% of our revenue is probably linked to, I would say non core or beyond the core businesses already. So we're not starting from 0.
We have, like I mentioned, the satellite mapping Business that's already there. We do pollution monitoring. We do monitor, for example, mining stability, Mine Tailings Stability, so there's a lot of these businesses. They're not significant yet in revenue. So we'll be able to give that
Your next question comes from the line of James Ronald from CIC Market Solutions. Please ask your question.
My question relates to Safel actually. How much of the large orders you won at the end of 2020, did you already deliver? That's the first question. And the second is in Marine Seismic. Polarcus has somewhat disappeared.
Their boats have been actually Taken over by some other owners, when do you think finally a modernization of Remaining fleets streamers might happen?
Yes. Good morning. So thank you for your question. The orders that we for the mega cruise in Saudi Arabia have all been delivered by now. So this really was a Q4 and a Q1 delivery.
Of course, we'd all like the marine market to pick up, And we've been talking about it so much that I hate to put a date on it. Of course, we all know that the streamers are aging and they're not getting And investors, eventually that replacement cycle would have to happen. I don't think generally that replacement cycle will be very steep As the companies will try and replace portions of their old streamers, not like entire That's in one go, which is actually a good thing for us because that means that cycle will not be as steep, but will be longer. Now in terms of what's happened in the marketplace, so I don't think that this replacement cycle will happen until the marine prices go up. And right now, marine prices are just barely getting to that cash breakeven or I would call that sustainable rate That allows for marine companies to invest in their streamers.
So we're not there yet. So the clients will have end clients, E and P clients will have to pay more For the streamer acquisition for that replacement to happen, although it is needed. So there were, Like you say, news in the market that in January Polarcus seized activity and they had 6 vessels. And those vessels were taken over by the banks who sold them to Shearwater. So now Shearwater owned those assets, and they did communicate Weeks ago that they would want to use those assets, those vessels to kind of renew or make their fleet upgrade their fleet, Let's put it that way.
But then conversely, the ex Polarcus team, management team and investors Have created a new company called PXGO that has bought the assets of SBGS. It's a combined node and marine streamer company, And they have 2 vessels so far with the aim to get 2 more vessels. So we'll have a sort of an equivalent to Polarcus being created through PXGO. So a bit of a mixed news, I would say, for our marine Streamer business, but we're quite pleased to see a new company emerging as a result of the market forces.
Thank you very much.
Sure. Okay. I think it was a very good call, lots of good questions. So thank you very much Thank you for your trust in CDG, and we look forward to further interactions in the days
Thank you, everybody. Goodbye.
This concludes today's conference call. Thank you for participating. You may now disconnect.