Arverne Group (ARVEN) H1 2024 earnings summary

Executive summary

• Major progress in H1 2024, including a positive pre-feasibility study (PFS) for geothermal lithium, significant expansion of geothermal and lithium project portfolios, and strategic partnership with Herrenknecht AG for deep drilling, leading to the creation of DrillDeep.

• Strengthened technical capabilities with increased workforce, equipment, and new executive appointments.

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

• Expanded geothermal heat project portfolio to over 60 plants and 3.5 TWh potential, with first geothermal heat production targeted for 2026.

• Creation of DrillDeep (74% owned) in March 2024 to expand drilling capacity.

Financial highlights

• Consolidated revenue for H1 2024 was €4.5M, down from €5.6M in H1 2023, mainly due to a temporary contract suspension.

• EBITDA (excluding exceptional items) was -€8.9M, reflecting ongoing investment and higher personnel costs.

• 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; net cash position of €118.2M.

• Capital expenditures reached €10M in H1 2024, with total fixed assets at €68.5M.

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; 2026 targets include €180–220M consolidated revenue and ~40% EBITDA margin; 2031 targets €900–1000M revenue and ~70% EBITDA margin.

• Definitive Feasibility Study (DFS) for geothermal lithium to launch in 2025.