The following is a summary of the Viridien Société Anonyme (CGGYY) Q2 2024 Earnings Call Transcript:
Financial Performance:
Q2 revenue reported at $258 million, with Geoscience and Earth Data segments showing growth, contrasting with a decline in the Sensing and Monitoring segment.
Adjusted EBITDA decreased 10% year over year to $94 million, impacted by the mixed performance across different segments.
Net cash flow for Q2 was near breakeven at minus $6 million, significantly improving from the previous year's major swing in working capital requirements.
Business Progress:
Viridien continues development in both core businesses of Geoscience, Earth Data, and Sensing and Monitoring, and new areas such as low carbon markets, high-performance computing, and infrastructure monitoring.
Expansion into new geographies for exploration including Brazil, Uruguay, and Malaysia, and an increase in Geoscience activities driven by offshore E&P CapEx.
The company has initiated significant multi-client projects such as the Laconia project in the Gulf of Mexico, supported by strong pre-funding.
A partnership signed with Baker Hughes for carbon capture solutions and Wrench Computing for computational support.
Operational turnaround plan underway in the Sensing and Monitoring segment to improve profitability during market volatility.
Opportunities:
Leveraging technology advancements in Geoscience and Earth Data for opportunities in traditional and new market sectors such as carbon capture and storage, and minerals and mining.
A new business momentum, with engaged strategic partnerships and project pre-funding leading to potential high-value multi-client projects in oil and resurgence markets.
Risks:
Continuing volatility in the Sensing and Monitoring market expected, influencing revenue stability.
Geopolitical and permitting delays possibly affecting project timelines and operational costs, specifically noted with environmental permitting impacting vessel utilization.
More details: CGG Sponsored ADR IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
