Sophie Zurquiyah, Chief Executive Officer of Viridien, said:
“The second quarter confirmed the favorable environment that we anticipated for our Geoscience and Earth Data businesses, with strong order intake and a good pipeline of multiclient projects leading well into 2025. In particular, we started a significant ocean bottom node project in the Gulf of Mexico, featuring several of our leading technologies that are critical to solving subsurface complexities.
Sensing & Monitoring revenue lowered this second quarter without “mega crew” equipment orders in 2024 and we are making good progress with its transformation plan to mitigate the impact on financial results.
Following our recent S&P credit rating upgrade,we have signed an extension of our $100 million revolving credit facility to October 2026, a key element of our financial roadmap.
Given our solid performance in the first half of the year and improved visibility for the second half, we reiterate our full year targets for Revenue, EBITDA and Net Cash Flow.”
Second Quarter Highlights
Group
IFRS Revenue, EBITDA and Net Income: $317 million, $150 million and $35 million.
CGG changed its name to Viridien, marking the next stage in its strategic growth as an Advanced Technology, Digital and Earth Data company.
DDE: strong revenue growth (+24%) and order intake (+91%) with good momentum for both Geoscience and Earth Data.
Overall group revenue decline, because of the absence of mega crew in Sensing & Monitoring (SMO) compared to Q2 2023
DDE Adjusted EBITDA of $96 million, a 26% increase vs last year, offset by SMO decline (-82% at $6 million).
Final settlement with ONGC of our ten-year-old commercial litigation.
Net Cash flow of $(6) million, with contractual fees from vessel commitments of $(13) million.
Liquidity at $430 million (including $ 90 million undrawn RCF).
Standard & Poor credit rating upgrade to B- (from CCC+) and revolving credit facility extended twelve months to October 2026.
[1] All variations refer to the same period last year [2] Unless otherwise stated, all figures and comments are referring to “Segment” (i.e. pre-IFRS 15), as defined in the 2023 Universal Registration Document’s glossary, under section 8.7
Digital, Data and Energy Transition (DDE)
Strong revenue growth while profitability was impacted by $(8) million in penalty fees from vessel commitments (vs $(1) million during Q2 2003). Revenue $177 million and Adjusted EBITDA $96 million up 24% and 26% respectively vs Q2 2023.
Geoscience
Revenue at $105 million (+31%), making Q2 2024 the strongest quarter since Q4 2015.
Market continues to gradually strengthen, driven mainly by infrastructure-led exploration and nearfield development. Order intake up 64% with increasing project sizes and broad adoption of our most advanced imaging technologies.
Beyond The Core showing positive momentum, with order intake up 4% in Q2 thanks to both CCUS and Minerals and Mining. Alliance signed with Baker Hughes to offer combined high-quality and fully integrated CCS solutions to clients.
HPC & Cloud Solutions: agreement signed with key digital media player Ranch Computing to provide compute capacity and support for optimizing their image rendering business.
Earth Data
Revenue: $72 million (+15%).
Prefunding revenue at $41 million (-3%) with the start of a well-supported project in Norway and funding for ongoing projects in South America. After-sales at $31 million (+53%), with significant sales in the North Sea and the Gulf of Mexico both for Exploration & Production and CCUS.
Slow but steady market improvement. Clients remain active in near-field exploration and are expanding into new frontier areas.
The Laconia sparse node program in the Gulf of Mexico (initiated in mid-July) will greatly enhance the value of our StagSeis surveys. Supported by funding from major clients, the survey is in an area with an attractive mix of owned and open blocks.
Beyond The Core: Grav-Mag program for the mining industry in Arizona, USA, was completed this quarter, providing an integrated multi-discipline data package.
Sensing and Monitoring (SMO)
Revenue at $82 million, down 44% across land and marine products, following delivery of the “mega crew” systems in 2023.
Adjusted EBITDA at $6 million, down 82%. Based on the equipment business market cycles, mainly driven by the activities of large land crews, SMO’s management initiated a transformation plan focused on cost reductions, operational and financial performance and cash generation.
Beyond The Core: increasing equipment and systems sales for applications outside oil and gas, with the delivery of several railway, mine and other infrastructure monitoring solutions.
Other events during the period
Reverse share split on the basis of 1 new share of €1.00 nominal value for 100 old shares of €0.01 nominal value, effective on July 31, 2024.
Post closing event
Viridien has signed an agreement for the extension of the maturity of its revolving credit facility to October 2026 (vs October 2025).
2024 Financial objectives
The Group reiterates its 2024 financial objectives for revenue, EBITDA and cash flow and confirms its 2024-2025 financial roadmap. Earth Data cash Capex indication is adjusted for Laconia.
Revenue expected to be in line with 2023
EBITDA to be positively impacted by business mix
Earth Data cash Capex now expected at $230-250M
Net Cash Flow to reach similar level as 2023
Q2 2024 Conference call
The press release and the presentation are available on our website www.viridiengroup.com at 5:45 pm (CET)
An English language analysts conference call is scheduled today at 6.00 pm (CET)
Participants should register for the call here to receive a dial-in number and code or participate in the live webcast from here.
A replay of the conference call will be made available the day after for a period of 12 months in audio format on the Company's website.
The Board of Directors met on July 30, 2024 and approved the consolidated financial statements ending June 30, 2024. Limited review procedures were completed, and an unqualified review report has been issued by the statutory auditors.
About Viridien (formerly CGG):
Viridien (www.viridiengroup.com) is an advanced technology, digital and Earth data company that pushes the boundaries of science for a more prosperous and sustainable future. With our ingenuity, drive and deep curiosity we discover new insights, innovations, and solutions that efficiently and responsibly resolve complex natural resource, digital, energy transition and infrastructure challenges. Viridien employs around 3,500 people worldwide and is listed as VIRI on the Euronext Paris SA (ISIN until July 30: FR0013181864 and ISIN as from July 31: FR001400PVN6).
