Another positive net result for brgm group in 2022
Along with four other public research institutes (INRAE, CIRAD, IFREMER and IRD), BRGM acts on behalf of the government under programme 172 of the framework law on budget Acts (LOLF). BRGM also receives subsidies for public service expenditure (SCSP) under programme 81, for its activities in “support of public-policy development in particular” and in “post-mining”.
For the BRGM Group
The net consolidated profit for the group stands at €2.6M in 2022 (compared to €12M in 2021). The contribution of the different entities to this net result is as follows:
- The BRGM EPIC contributed €1.9M, which corresponds to its net corporate result of €4M adjusted to take account of entries for transactions with subsidiaries (mainly write-back for €2M in dividends received from SAGEOS);
- BRGM SA contributed €0.1M;
- SAGEOS contributed a loss of €0.2M to the group’s result in 2022, which corresponds to its corporate result adjusted for dividends received from its subsidiaries and intra-group provisions;
- CFG and IRIS INSTRUMENTS contributed respectively €0.6M and €0.2M;
For BRGM EPIC
BRGM posted a net profit of €4 M for its 2022 financial year compared with a net profit of €12.7 M in 2021 resulting, among other things, from the sale of the portfolio of ERAMET securities. The operating result was again positive, amounting to €1.4M; for the record, the operating result amounted to €4M in 2021. The financial result amounted to €2.5M, down from €8.7M in 2021. All these elements led to the payment of a profit-sharing bonus (€1.9M) and will allow the Group to contribute to the company savings plan in 2023.
The BRGM’s total operating resources for 2022 amounted to €146M. Excluding write-backs for provisions and expense transfers, resources related to current activity decreased by 2.4% compared to 2021 and amounted to €138.8M (including €1.6M in investment subsidies). The drop in resources was due to the post-mining activity: at €26.80M, they are down by €7.4M compared to 2021 (-21.7%). Non-post-mining resources amounted to €112M, an increase of €4.2M compared to 2021 (+3.9%). Its overheads amounted to a total of €144.6M in 2022. After restatement of provisions, expenses related to ordinary activities amounted to €139.5M, i.e. a decrease of 3.2% compared to 2021. If the effect of the €6m contribution to a pension fund recorded in 2021 is exluded, the change observed is, on the contrary, an increase in overhead of €1.34M (i.e. +0.9% compared to 2021). The increase concerns structural external expenses (+€3.4 million after restatement of all exceptional effects, mainly contributions to the pension fund and non-value intangible assets), while operating expenses fell sharply by €5M, due to the reduction in the post-mining activity. Personnel expenses also increased, by €2.8M.
For the activity excluding post-mining, the level of SCSPs increased by €1.8M (+3.4%), with an inverse trend between revenues under programme 172, which increased by €2M (+4.1%), and those under programme 181, which decreased by €0.2M (-4.4%).
The level of contracts and agreements (€54.2M at the end of 2022) is clearly up compared to 2021 (€51.8M), mainly due to public policy support projects (APP, +€1.8M compared to 2021) and public research projects (+€1.3M compared to 2021), with production for the commercial sector showing a decrease due to its international component, with “France” activity showing a slight increase.
The level of contract revenue related to the APP mission reached a new all-time high at €30.7M, thus exceeding the level recorded in 2021 (€29.6M) as well as in the previous six years. This record is based on several concomitant factors, including the start of an airborne geophysics project in the Massif Central (€1.7M for 2022) and the maintaining of the annual co-financing rate (73.9% for 2022).
The increase in contract revenue in public research is mainly due to two factors: the increase in project output and the strong increase in the annual co-financing rate (47.8% in 2022 compared to 42% in 2021).
International activity in 2022 was significantly lower than in 2021, at €3.9M (compared to €6.2M in 2021). The end of the Cameroon2, Malawi and Mozambique projects, the delay in signing during the health crisis (in 2020 and 2021) and the late start of certain co-financed contracts (AfricaMaVal) have had a significant impact on the level of production.
Post-mining activity fell sharply in 2022 down by €7.43M compared to 2021, due to a significant decrease in its production for post-mining security and risk-prevention (-€7.9M).
The financial result of €2.5M in 2022 is mainly due to the integration of dividends from SAGEOS (€2M).
The group did not have to pay any corporate income tax in 2022.