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A positive 2021 net result for the BRGM group

Header introduction
In 2021, BRGM confirmed the recovery that had begun in 2020. The improvement in results was due to increased operating activity for BRGM EPIC and the favourable outcome of the ERAMET share sale for its subsidiary BRGM SA.
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Along with four other public research institutes (INRAE, CIRAD, IFREMER and IRD), BRGM operates on behalf of the government under programme 172 of the Organic Act on Public Accounts (LOLF). BRGM also receives subsidies for public service expenditure (SCSP) under programme 181, for its activities in post-mining and support for public-policy development in particular.

At the BRGM Group level

The net consolidated profit for the group stands at €12M in 2021 (compared to  €0.3M in 2020). The contribution of the different entities to this net result is as follows: 

  • In 2020, BRGM contributed €3.6M to the Group’s consolidated operating result, which corresponds to its net social result of €12.7M adjusted to take account of entries for transactions with subsidiaries (mainly write-back for budget allotments to the BRGM SA subsidiary);
  • BRGM SA contributed €7.6M, mainly due to the disposal of ERAMET shares;
  • SAGEOS contributed €0.8M of income to the group in 2021, mainly as a result of the sale of CFG shares and dividends received from its subsidiaries and holdings;
  • CFG, and IRIS INSTRUMENTS contributed €0.1M and +€0.4M respectively, while MPT IRIS Inc brought a loss of €0.4M.

At the BRGM EPIC level

BRGM EPIC’s net result improved further in the 2021 financial year, with a profit of €12.7M compared to a loss of €1.6M in 2020. The operating result increased by €1.9M to €4M (compared to €2.1M in 2020). The financial result increased by €12.3M compared to 2020 and amounted to €8.7M in 2021 (compared to a loss of €3.6M in 2020). All these elements led to the payment of a profit-sharing bonus (€1.9M) and will allow a contribution to the company savings plan in 2022.

The BRGM’s total operating resources for 2021 amounted to €156M. Excluding reversals of provisions and expense transfers, resources related to current activity increased by 6.6% compared to 2020 and amounted to €140.6M. Its overhead amounted to a total of €152M in 2021. After restatement of provisions and a €6M contribution to a new pension fund, expenses related to ordinary activities amounted to €138.2M, an increase of 6.6% compared to 2020. The increase mainly concerns external operating expenses (+ €6.5M), due to the growth in activity. Personnel costs remained stable (at €68.2M).

Excluding post-mining activity, the level of SCSPs remains stable compared to 2020 (€53.9M). The contracts and agreements amounted to €51.8M, up by 5.3% compared to 2020. For business alone, the evolution is contrasted between international activity, which recorded an increase of €1.8M compared to 2020, and French business activity, for which production decreased slightly by €0.5M.

Production for the Public Policy Support mission attained its highest level for six years at €29.6M. On the other hand, public research activity financed by contracts and agreements (€11.9M) is down by €2.8M compared to 2020. This is due both to an increasing decline in final co-financing rates for national public research projects and to the financial closure of European H2020 projects at a lower level than expected.

The post-mining activity benefited from both an increase in the SCSP allocated to it (+€1M) and a significant increase in its production under contract (+€5.2M).

The financial result of €8.7M in 2021 is the result of the increase in the value of BRGM SA (mainly due to the sale of ERAMET shares) and the dividends received from SAGEOS (€1.5M).

Finally, corporate income tax due for the group amounted to €1M in 2021.

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BRGM Epic operating result in 2021, 156 Operating income 2021 in millions and 152 Operating expenses 2021 in millions of euros
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Production breakdown and Breakdown of activity by type of funding
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Breakdown of activity by item
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Evolution of total income and Evolution of total expenses 2018-2021 (in millions of euros)
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Evolution of government grants and Evolution of operating result (in millions of euros)
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Evolution of resources under contracts for scientific research and support for public policy development support (in millions of euros exlusive of VAT)
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Breakdown of BRGM’s international operations by country in 2021