Viridien (VIRI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $258 million, down 10% year-over-year, but H1 2024 revenue rose 7% to $532 million, with strong Geoscience and Earth Data performance and weaker Sensing & Monitoring (SMO) results.

• The company rebranded from CGG to Viridien, signaling a strategic shift toward advanced technology, digital solutions, and expansion into low-carbon and digital businesses.

• Net cash flow improved significantly, reaching $24 million in H1 2024, aided by a major litigation settlement in India.

• Operational turnaround in SMO is underway to address market volatility and improve profitability.

• S&P credit rating was upgraded to B- and the revolving credit facility was extended to October 2026.

Financial highlights

• Q2 revenue was $258 million; H1 2024 revenue reached $532 million, up 7% year-on-year; adjusted EBITDA for H1 was $200 million, up 17% year-on-year.

• Q2 adjusted EBITDA was $94 million, down 10% year-on-year; net cash flow for H1 was $24 million, a significant improvement from $(78) million in H1 2023.

• Group net income for H1 2024 was $32 million, up 39% year-on-year.

• Liquidity at end of Q2 was $430 million, including $90 million undrawn revolving credit facility.

• Net debt after IFRS 16 at $941 million as of June 30, 2024, down from $974 million in December 2023.

Outlook and guidance

• 2024 revenue is expected to be in line with 2023, with full-year targets for revenue, EBITDA, and net cash flow reiterated.

• Earth Data CapEx guidance increased to $230–250 million to fund the Laconia project.

• Net cash flow for 2024 anticipated to match 2023, with ONGC settlement offsetting higher capex.

• New business lines projected to grow over 30% in 2024.

• 2025 net cash generation targeted at $100 million, with $300 million available for debt buyback or refinancing.