Revenue: Nine-month revenue nearly flat at $778 million.
Segment Adjusted EBITA: Increased by 7% year over year to $298 million.
Net Cash Flow: Improved significantly to $34 million.
DDE Segment Revenue: $187 million, quasi stable year on year.
Geoscience Revenue: Q3 segment revenue increased 32% to $103 million.
Earth Data Revenue: $83 million, down 22% compared to last year.
SMO Segment Revenue: $59 million, a decline from Q3 2023.
Net Income: Group net income at $32 million for the nine months.
Gross Debt: After IFRS 16, at $1,345 million.
Liquidity: Stood at $442 million as of September 24th.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Viridien (CGGYY) reported a 7% increase in nine-month segment adjusted EBITA, reaching $298 million, driven by strong performance in Geoscience.
Net cash flow improved significantly to $34 million, marking a major improvement from the previous year.
The company is seeing strong growth in its Geoscience segment, with Q3 revenue increasing by 32% to $103 million, the strongest quarter since Q4 2015.
Viridien (CGGYY) has secured new contracts in the mining industry and for carbon storage, expanding its project portfolio to nine ongoing projects.
The company is well-positioned to capitalize on upcoming opportunities in Brazil’s 2025 presalt bid round, with comprehensive data coverage in the region.
Data revenue was lower than expected due to cutoff effects and a continued trend of hyper funding and flat aftersales.
Sensing and Monitoring (SMO) segment experienced a decline in activity, with Q3 revenue down from the previous year.
The company incurred a $37 million penalty fee related to vessel commitments, impacting its EBITDA.
Earth Data segment revenue decreased by 22% compared to last year, although year-to-date numbers showed an 8% increase.
The company faces quarterly volatility, particularly in the SMO segment, which is expected to continue based on large crew activity.
Q: Can you provide an update on the prefunding progress for the Laconia project and expectations for late sales in Q4? A: Prefunding for Laconia is progressing well, with some clients coming in earlier than expected, which will bring cash forward. We are tracking to our cash break-even point by the end of next year. For late sales, we expect Q4 to be strong, with identified deals providing more visibility than in previous years. However, it’s always subject to final client decisions at year-end.
