Argeo (ARGEO) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of USD 23.0 million, up 336% year-over-year, with a shift to profitability and strong operational execution across all major projects.

• Year-to-date 2024 revenue reached USD 48.1 million, up 429% from the prior year, with YTD EBITDA at USD 12.5 million and net profit at USD 1.6 million.

• Backlog for 2024 stands at USD 71 million, with USD 48 million produced YTD and USD 23 million remaining, providing 100% vessel backlog coverage for the rest of the year.

• Successfully uplisted to Euronext Oslo Stock Exchange and entered an eight-year multi-client agreement in Suriname.

• Major projects for RWE, Woodside, and TotalEnergies were completed ahead of schedule and on budget, with all vessel spreads fully utilized.

Financial highlights

• Q3 2024 revenue: USD 23.0 million (up from USD 5.3 million in Q3 2023); EBITDA: USD 5.4 million (up from -USD 1.6 million); EBIT: USD 2.7 million (up from -USD 2.8 million); net profit: USD 0.5 million (up from -USD 3.5 million).

• YTD 2024 revenue: USD 48.1 million (up from USD 9.1 million); YTD EBITDA: USD 12.5 million (up from -USD 4.1 million); YTD net profit: USD 1.6 million (up from -USD 7.5 million).

• Cash from operations in Q3: USD 8.0 million; cash and cash equivalents at quarter end: USD 5.5 million.

• Total assets: USD 98 million; equity: USD 43 million; lease liabilities: USD 25 million; interest-bearing debt: USD 15 million.

• Gross profit for Q3 2024: USD 6.8 million (up from -USD 1.1 million in Q3 2023); EBITDA margin: 23.5%.

Outlook and guidance

• Offshore investments are booming, with deepwater project investments expected to rise from USD 104 billion in 2024 to USD 140 billion by 2027.

• Africa's deepwater output share projected to grow from 25% to 40% by 2035; offshore wind capacity to surpass 520 GW by 2040, led by Europe.

• Norway's first marine mineral licensing round planned for Q2 2025, with the company positioned for immediate market entry.

• Tender pipeline increased to USD 360 million, with most activity in North/South America and West Africa.

• Argeo Searcher and Venture vessels are fully booked for the remainder of 2024, with ongoing projects in Suriname and Namibia.