Exciting Q2 and expected strengthening in the offshore market for the service sector

Sep 8, 2022 | News

OSLO – September 8th, 2022:
The second quarter was an exciting quarter as parts of Argeo’s fleet entered commercial operations and the Company´s first multi-client project acquired unique data.

Key highlights for the quarter included: 

  • NOK 75 million private placement
  • AUV work for Statens Vegvesen completed
  • AUV work in Brazil completed
  • The Commercialization of Argeo LISTEN IMR tool
  • The Multi-client offshore wind project at Utsira Nord started
  • Argeo “Argus” USV was commercially launched

– The second quarter was an exciting quarter with high activity including the delivery of several technology systems and commercialization on many levels. Going forward we see a strengthening in the offshore market for the service sector, inflated prices and tighter supply for vessels, assets, and personnel for our key geo-markets, says CEO Trond Crantz at Argeo.

In March Argeo signed an agreement with Kongsberg Maritime for the purchase of a Hugin 6000 AUV (Autonomous Underwater Vehicle) for delivery early in the second half of 2022. The AUV is confirmed to start commercial operations upon delivery in September.

– The demand for our Hugin 6000 AUV is strong, which is reflected in the value of its first contract. The duration is six months with an option to extend a further six months with a total EBITDA-contribution for the full 12 months at 4.5 MUSD, says Crantz.

The Hugin 6000 is a state-of-the-art ultra-deep water autonomous vehicle with all the necessary payload systems to make it one of the most advanced high-capacity survey machines in the world.

The Company has also started rollout of Argeo Robotics technology solutions having completed technical and offshore testing and verification in Q2. – Our sensor technology is receiving praise and enthusiasm from customers expecting these new tools to provide important insights and efficiency gains globally, says Crantz. Argeo Robotics groundbraking cloud-based Digital Platform completed its first phase during the quarter and is gearing up for targeted Pilot Customer introduction in Q3.

The offshore energy sector has demanded the company’s principal focus in 2022 and the second quarter has intensified this focus for Argeo internationally. The market is largely under-supplied based on approved concessions and reported sanctioning of projects for 2023.

– We experience an upsurge in requests and tenders in our core markets and that our clients are expecting more from us, requesting a longer and complete service, moving towards full subsea services, says Crantz.

Going forward the offshore energy sector is leading the way with several new concessions both within Oil & Gas and Offshore Wind.

– We have seen this trend starting in the brownfield market with strong activity for IMR services. Balancing assets for the right project with the right risk/reward ratio is important going forward, says Crantz.

A Q2 presentation will be broadcasted live at: www.argeo.no/webcast on the 08. of September at 10.00 CET. Viewers may submit written questions during and after the presentation.