Viridien (VIRI) Q3 2021 earnings summary

Executive summary

• Q3 revenue reached $210 million, up 23% sequentially, with gradual Geoscience recovery, continued data-library demand and higher Equipment deliveries.

• 9M reported revenue was $590.6 million; operating income was $5.2 million and net loss was $148.1 million, improving from a $338.0 million net loss in 9M 2020.

Financial highlights

• 9M reported revenue declined 12% YoY to $590.6 million; excluding IFRS 15 adjustments, segment revenue fell 5% to $639.9 million.

• Reported gross profit was $79.6 million, down 39% YoY; gross margin was 13% versus 20%.

• Reported operating income was $5.2 million versus a $114.8 million loss in 9M 2020; net loss narrowed to $148.1 million from $338.0 million.

• Adjusted for IFRS 15 revenue timing, segment operating income was $14.5 million versus a $122.3 million loss; segment EBITDAS was $195.3 million.

• 9M operating cash flow was $235.2 million, near $238.4 million in 2020; net cash flow was a $61.4 million outflow versus $152.1 million outflow.

Outlook and guidance

• Recovery was expected to continue into year-end and 2022, supported by catch-up E&P spending needs, high-quality data in active basins and improving Geoscience activity; timing and breadth remained uncertain.

• Q3’s 23% sequential revenue increase reflected the anticipated gradual Geoscience recovery and pickup in Equipment deliveries.

• Seasonally, Equipment and Multi-client activity typically rises in Q4 as clients deploy annual budgets and multi-client sales strengthen late in the year.