Argeo (ARGEO) Q1 2025 earnings summary

Executive summary

• Revenue rose to USD 11.5 million in Q1 2025, up from USD 9.5 million year-over-year, mainly due to a contract in Namibia.

• Net loss was USD 4.2 million, compared to a profit of USD 1.9 million in Q1 2024, but improved from a USD 8.5 million loss in Q4 2024.

• Major contract wins included preferred supplier status for a four-year ROV/AUV support vessel contract in South America, with key projects completed in Namibia and Suriname.

• CEO transition: Trond Crantz stepped down, Odd Erik Rudshaug is interim CEO, and a search for a new CEO is ongoing.

• Safety performance was strong with zero recordable incidents or lost time injuries in over 210,000 exposure hours.

Financial highlights

• EBITDA was negative USD 0.2 million, down from positive USD 2.9 million in Q1 2024, but improved from -USD 5.7 million in Q4 2024.

• Backlog at quarter-end was USD 14 million, expected to rise to USD 164 million upon formalizing a South American contract.

• Cash at quarter-end was USD 4.1 million, up from USD 0.8 million at year-end 2024, aided by a USD 13.3 million share issue.

• Tender volume at quarter-end was USD 197 million.

• Cost of sales increased to USD 10.2 million from USD 5.3 million year-over-year, reflecting higher vessel activity.

Outlook and guidance

• Oil & gas will be the primary revenue stream in 2025 due to delays in marine minerals and wind energy projects.

• Market uncertainty is expected to persist in 2025 due to geopolitical and economic factors, especially in renewables and marine minerals.

• A steady pipeline is expected into 2026, with a focus on securing long-term contracts and frame agreements.

• Sales from the Suriname multi-client project are expected to begin in 2025.

• Operational performance is solid, with active bidding and project discussions ongoing for the remainder of the year.