Argeo (ARGEO) Q2 2024 earnings summary

Executive summary

• Revenue surged 1037% year-over-year to $15.7 million in Q2 2024, driven by key assets and major contract wins, with EBITDA at $4.2 million and EBIT at $1.6 million; net loss narrowed to $0.9 million, including $0.7 million in unrealized exchange losses.

• Backlog conversion reached $71 million year-to-date, with a remaining backlog of $45 million at quarter-end.

• Operational efficiency was high, with Argeo Searcher at 86–90% utilization and Argeo Venture near 99–100%; three vessel spreads served major clients across two continents.

• Major contracts awarded with Woodside Energy and RWE, and a successful subsequent offering raised NOK 30.25 million.

• HSEQ performance improved, achieving a TRIF of 1.1 and zero LTIs over 18,000 exposure hours.

Financial highlights

• Q2 2024 revenue: $15.7 million (+1037% YoY); EBITDA: $4.2 million (+368% YoY); EBIT: $1.6 million (+160% YoY); net loss improved to $0.9 million from $2.6 million YoY.

• Backlog at quarter-end was $45 million, up 275% since Q2 2023.

• Current assets stood at $24 million, equity at $42 million, and cash at $2.7–3 million at quarter-end.

• Interest-bearing liabilities totaled $15.6–19 million; lease liabilities were $27 million; total liabilities increased to $64.7 million due to new leases and loans.

• Cash flow from operations was $0.1 million; $13 million net from financing activities, including $7.1 million in new equity and $14 million from a sale-leaseback; $15.9 million invested in H1, mainly for Argeo Venture upgrades.

Outlook and guidance

• Q3 is expected to be significantly stronger due to full activity across three vessel spreads and high utilization, with a robust tender pipeline of $130 million.

• Expects continued growth in offshore wind and deep-water subsea markets, with good margins in tenders.

• No new investment decisions have been made; only minor maintenance CapEx expected.

• No need for additional capital; uplisting planned for mid-October without new placements.