Fjord Defence Group (DFENS) Q2 2024 earnings summary

Executive summary

• Multi-client revenues reached USD 0.8 million in Q2 2024, with a cash loss of USD 0.6 million and net asset value at NOK 1.68 per share.

• The multi-client library is valued at USD 27.9 million, and the investment portfolio at USD 6.6 million.

• No financial indebtedness, with an equity ratio of 87.8% and available liquid funds of USD 8.2 million.

• Share capital was reduced by deleting 5.1 million shares, and a new buyback program for NOK 5 million is ongoing.

• Strategic alternatives and capital returns, including share buybacks and possible dividends, are under review.

Financial highlights

• Q2 2024 revenue was USD 0.8 million, primarily from Utsira reprocessing.

• Operating loss for the quarter was USD 1.4 million, improved from USD 3.4 million loss in Q2 2023.

• Total comprehensive loss for the period was USD 1.4 million, improved from USD 3.7 million loss year-over-year.

• Amortization of multi-client assets was USD 1.6 million in Q2 2024.

• Cash and cash equivalents at quarter-end were USD 1.9 million.

Outlook and guidance

• Oil prices are expected to remain historically high, supporting continued exploration activity.

• Economic conditions in Egypt are improving, potentially benefiting Gulf of Suez survey sales.

• Multi-client late sales remain unpredictable, driven by licensing rounds and oil company schedules.

• Strategic transactions and further share repurchases remain under consideration.