Arverne Group (ARVEN) H1 2024 earnings summary

Executive summary

• Major progress in H1 2024, including a positive pre-feasibility study for the Lithium de France project and significant expansion of geothermal and lithium portfolios.

• Revenue for H1 2024 was €4.5M, down 19.6% year-over-year due to a temporary contract suspension and lower drilling activity.

• Operating loss before depreciation reached €8.9M, mainly from restructuring costs after the September 2023 SPAC merger.

• Strengthened technical capabilities with increased workforce, equipment, and strategic partnerships, notably with Herrenknecht AG.

• Continued investments in R&D, permitting, and infrastructure to support future geothermal heat and lithium production.

Financial highlights

• Consolidated revenue for H1 2024 was €4.5M, down from €5.6M in H1 2023.

• EBITDA was negative at -€8.9M, impacted by higher personnel costs and ongoing investments.

• Net loss of -€9.5M for H1 2024, compared to a net profit of €9.3M in H1 2023, which included significant one-off gains.

• Cash and equivalents at €136.8M as of June 30, 2024.

• Gross investments (Capex) totaled €10.1M in H1 2024.

Outlook and guidance

• 2024 gross activity volume targeted at €16–18M, representing 35–50% growth.

• €50M investment program for 2024, with €9M deployed in H1 and €40M planned for H2, mainly for rig acquisitions and seismic campaigns.

• First geothermal heat production targeted for 2026, lithium production in 2028, with projected consolidated revenue of €180–220M and ~40% EBITDA margin.

• Plateau lithium production expected by 2031, with revenue between €900M and €1B and ~70% EBITDA margin.