Fjord Defence Group (DFENS) Q3 2024 earnings summary

Executive summary

• Q3 2024 multi-client revenues were USD 0.9 million, with the multi-client library valued at USD 26.3 million and investment portfolio at USD 5.2 million.

• Cash earnings loss for the quarter was USD 1.0 million, and net asset value per share was NOK 1.47.

• Seismic investments represent 76% of total assets, with no financial indebtedness and an equity ratio of 83.3%.

• Utsira reprocessing project completed on time and budget, with improved data quality expected to drive future sales.

• Kristian Zahl appointed interim CEO as of November 2024.

Financial highlights

• Q3 2024 revenue was USD 0.9 million, down from USD 2.1 million in Q3 2023.

• Operating loss widened to USD 4.0 million from USD 0.6 million year-over-year.

• Net asset value per share was NOK 1.47, with available liquid funds of USD 6.6 million.

• Cash and cash equivalents at quarter-end were USD 1.7 million, down from USD 2.4 million a year ago.

• Total assets decreased to USD 36.3 million from USD 43.9 million at year-end 2023.

Outlook and guidance

• Oil prices expected to remain high, supporting exploration, but E&P companies are cautious with discretionary spending, impacting late sales.

• Multi-client late sales remain lumpy and unpredictable, driven by licensing rounds and client scheduling.

• Economic conditions in Egypt are improving, potentially benefiting Gulf of Suez operations, though local risks persist.

• Strategic transactions and further shareholder distributions, including buybacks, are under ongoing review.