Argeo (ARGEO) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $5.4 million, up from $1.0 million in Q4 2023, with full-year revenue at $53.5 million, reflecting over 430% year-over-year growth, though EBITDA and net profit remained negative due to project delays and early investments.

• Net loss for Q4 was $8.5 million, an improvement from $9.4 million in Q4 2023; full-year net loss improved to $6.9 million from $16.9 million in 2023.

• Completed NOK 150 million private placement to support growth, equipment purchases, and entry into new markets.

• Signed a five-year site investigation frame agreement with TotalEnergies and secured an eight-year multiclient agreement in Suriname.

• Maintained a strong safety record with TRIF under 0.6 and zero LTIs over 775,000 exposure hours.

Financial highlights

• Q4 2024 EBITDA was minus $5.7 million, down from minus $2.2 million in Q4 2023; full-year EBITDA was $6.8 million, up from minus $6.3 million in 2023.

• EBIT for Q4 was minus $7.9 million, compared to minus $6.4 million in Q4 2023.

• Cash and cash equivalents at year-end were $0.8 million, with significant CapEx and investment activities during the quarter.

• Total liabilities increased to $66.1 million from $36.6 million at end-2023, mainly due to new vessel and equipment financing.

• Cash from operations in Q4 was minus $3.7 million; CapEx was $1.5 million; $8.7 million proceeds from long-term debt.

Outlook and guidance

• Expected backlog for 2025 is $190 million, with $14 million firm for Q1 2025 and potential to reach $300 million including tenders.

• Annualized revenue run-rate for 2025 is projected at $20 million per quarter, supported by strong tender volume and new contracts.

• Strong demand anticipated in deepwater oil and gas markets, with expansion plans in South America, West Africa, and Southeast Asia.

• Venture expected to continue operations in Africa throughout 2025.

• $4 million in backlog for NCPOR rescheduled to 2025, aligning with vessel mobilization.