Viridien (VIRI) Q3 2024 earnings summary

Executive summary

• Nine-month revenue was $778 million, nearly flat year-over-year, with strong GeoScience growth offset by Sensing & Monitoring (SMO) declines.

• Adjusted EBITDA for the nine months rose 7% to $298 million, driven by GeoScience and cost control.

• Net cash flow improved to $34 million from negative $15 million last year, reflecting operational efficiency.

• Q3 2024 revenue was $246 million, down 20% year-over-year; Q3 adjusted EBITDA was $98 million, down 9%.

• Strategic focus on technology leadership, new business growth, and cash flow generation.

Financial highlights

• Q3 group revenue at $246 million, down 20% year-over-year; GeoScience up 32% to $103 million, Earth Data down 22%.

• Nine-month EBITDA up 7% to $298 million, despite $36–$37 million in penalty fees from vessel commitments.

• Adjusted segment operating income for nine months at $84 million, down 32% year-over-year.

• Group net income for the nine months was $21.2–$32 million.

• Multi-client/Earth Data CapEx increased to $180 million for nine months, mainly due to the Laconia project.

Outlook and guidance

• 2024 revenue expected to be in line with 2023, with strong Geoscience order intake and Laconia program contributing.

• Sensing & Monitoring segment impacted by delayed Middle East mega-projects; new businesses expected to grow over 30%.

• Q4 SMO revenues expected to exceed the first three quarters combined, driven by delayed orders.

• Net cash flow for 2024 expected to match 2023, with last year of negative impact from vessel contractual commitments.

• Vessel capacity contract expires January 2025, expected to positively impact EBITDA and cash flow.