Viridien provides Full Year 2024 Financial Update

Rhea-AI Summary

Viridien reported its full-year 2024 financial update, achieving revenue and EBITDA slightly above $1,100 million and $430 million respectively, in line with guidance. The company generated net cash flow of approximately $50 million, significantly exceeding its initial target of $30 million, while reducing net debt to around $930 million.

Key achievements include doubling their bond buyback commitment to $60 million, receiving an improved credit rating from S&P to B-, and extending their revolving credit facility until October 2026. The strong performance was driven by the Data, Digital & Energy Transition (DDE) segment, particularly in Geoscience activities and the Laconia project in the Gulf of Mexico.

The company reaffirmed its 2025 target of generating approximately $100 million in net cash flow, supported by strong Geoscience activity, project pipeline, and benefits from the Sensing & Monitoring restructuring. Full audited results will be announced on February 27, 2025.

Positive

• Net cash flow of $50M exceeded initial target of $30M
• Revenue and EBITDA reached $1.1B and $430M respectively
• Successfully executed $60M bond buyback, double the planned amount
• Credit rating improved to B- by S&P
• Revolving credit facility extended to October 2026

Negative

• Net debt remains substantial at $930M

Insights

Financial Analyst

A strong operational performance from Viridien in 2024, with revenue reaching $1.1 billion and EBITDA of $430 million. The standout achievement is the $50 million net cash generation, significantly exceeding the initial target of $30 million. This demonstrates robust cash flow management and improved operational efficiency.

The strategic bond repurchase of $60 million, double the committed amount, coupled with the credit rating upgrade from S&P to B-, signals improving financial health. The extension of the revolving credit facility to October 2026 provides enhanced liquidity runway and flexibility for the upcoming 2027 bond refinancing.

The Data, Digital & Energy Transition segment's performance, particularly in Geoscience activities and the Laconia project, indicates strong market positioning in high-growth areas. The $100 million net cash flow target for 2025 appears achievable given the current trajectory and successful transformation of the Sensing & Monitoring segment.

Market Research Analyst

The energy sector transition is clearly reflected in Viridien's strategic pivot through their Data, Digital & Energy Transition segment. The Laconia project in the Gulf of Mexico represents a significant opportunity to monetize seismic data assets, particularly valuable as energy companies intensify exploration activities in response to global energy security concerns.

The successful restructuring of the Sensing & Monitoring segment positions Viridien to capture emerging opportunities in the evolving energy landscape. The reduced net debt of $930 million and improved credit rating enhance the company's competitive position and financial flexibility at a important time in the industry's transformation.

Paris (France), January 09, 2025, 17h45 CET

REVENUE AND EBITDA IN LINE WITH GUIDANCE

NET CASH FLOW 2024 OF c.$50M, ABOVE EXPECTATIONS

Sophie Zurquiyah, CEO of Viridien, said:

« 2024 was marked by the achievement of our goals set at the beginning of the year including the implementation of our ambitious financial roadmap.
We achieved EBITDA growth and net cash flow generation close to $50 million, exceeding our initial target of $30 million. Additionally, we repurchased $60 million of our own bonds, doubling our $30 million commitment. Our credit rating improved from S&P, and we extended our revolving credit facility in preparation for refinancing our debt.
These results were driven by the Data, Digital & Energy Transition (DDE) segment, with strong growth in Geoscience (GEO) activities and the launch of the significant Laconia project. This project enhances the value of the seismic data library of Earth Data (EDA) activities in the Gulf of Mexico.
The performance of DDE and the successful execution of the transformation plan for the Sensing & Monitoring (SMO) segment enable us to confidently reaffirm our target of generating around $100 million in net cash flow in 2025. »

Overview of 2024 Activity and Results, and 2025 Outlook

• Revenue and EBITDA for the full year 2024 estimated slightly above $1,100 million and $430 million, respectively
• Net cash generation of c.$50 million leading to a net debt (after IFRS 16) of c.$930 million
  • Net cash generation exceeding the initial target of c. $30 million due to earlier than expected client collection.
• Delivering on our financial roadmap
  • Improved credit rating by Standard & Poor’s to B-.
    • $60 million of bond buy-back.
    • Revolving credit facility extended until October 2026 as part of preparation for the refinancing of the 2027 bonds.
• 2025 net cash generation objective of c.$100 million reiterated
  • Continued strong activity in GEO, strong pipeline of projects and termination of the contractual fees from vessel commitment for EDA, and benefits of the SMO restructuring.
• Full Year 2024 Results and conference call
  • Viridien will announce its fourth quarter 2024 and full year 2024 audited results on February 27, 2025, after market close.
    
    

About Viridien :

Viridien (www.viridiengroup.com) is an advanced technology, digital and Earth data company that pushes the boundaries of science for a more prosperous and sustainable future. With our ingenuity, drive and deep curiosity we discover new insights, innovations, and solutions that efficiently and responsibly resolve complex natural resource, digital, energy transition and infrastructure challenges. Viridien employs around 3,500 people worldwide and is listed as VIRI on the Euronext Paris SA (ISIN: FR001400PVN6))

Contact:

VP Corporate Finance
Jean-Baptiste Roussille
jean-baptiste.roussille@viridiengroup.com

Attachment

• Viridien provides Full Year 2024 Financial Update

FAQ

What was Viridien's net cash flow in 2024?

Viridien generated approximately $50 million in net cash flow during 2024, exceeding their initial target of $30 million.

How much revenue and EBITDA did Viridien report for 2024?

Viridien reported revenue slightly above $1,100 million and EBITDA of approximately $430 million for 2024.

What is Viridien's net cash flow target for 2025?

Viridien has reiterated its target to generate approximately $100 million in net cash flow for 2025.

How much debt did Viridien buy back in 2024?

Viridien repurchased $60 million of their own bonds in 2024, doubling their initial commitment of $30 million.

What is Viridien's current credit rating from S&P?

Standard & Poor's improved Viridien's credit rating to B- in 2024.

When will Viridien announce its full audited results for 2024?

Viridien will announce its fourth quarter and full year 2024 audited results on February 27, 2025, after market close.