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Aquila Holdings ASA (AQUIL) reported no revenue but improved its cash position in the first quarter of 2025, according to the company’s presentation released on May 8. The Norway-based company, which specializes in multi-client seismic data and strategic investments, saw its cash holdings nearly triple despite ongoing challenges in generating sales from its core seismic library.
Quarterly Performance Highlights
Aquila reported no revenue for Q1 2025, compared to $2.3 million in the same period last year. Despite this revenue drought, the company maintained a relatively stable operating loss of $2.0 million, identical to Q1 2024. The company’s net asset value stood at NOK 1.22 per share at quarter-end.
The most significant positive development was the company’s improved cash position, which rose to $3.0 million from $1.1 million at the end of 2024. This improvement was primarily driven by a $1.5 million settlement from a financial asset and $0.4 million from the sale of shares in Arbaflame AS.
As shown in the following quarterly highlights, the company maintained a strong liquidity position despite the absence of revenue:
Detailed Financial Analysis
Aquila’s balance sheet remained solid with total assets of $27.2 million as of March 31, 2025, slightly down from $28.8 million at the end of 2024. The company’s multi-client seismic library, which represents approximately 75% of total assets, was valued at $20.5 million, down from $22.0 million at year-end 2024.
The company maintains a debt-free capital structure with an equity ratio of 92.1%, providing significant financial flexibility. Available liquid funds, including bank deposits, net trade receivables, and marketable securities, totaled $6.6 million at quarter-end.
The following chart illustrates the company’s net asset value composition, which provides a clear picture of how the company’s value is distributed:
The company’s financial position remains stable despite the challenging revenue environment, as shown in the balance sheet summary:
Cash flow from operations was marginally positive at $0.1 million, while investment activities generated $1.9 million in cash, a significant improvement from $0.2 million in Q1 2024. This resulted in a net increase in cash of $2.0 million for the quarter.
Strategic Assets and Investments
Aquila’s multi-client seismic portfolio is concentrated in two key regions: the Utsira area in the North Sea and the Gulf of Suez in Egypt. The company is collaborating with industry partners Viridien (formerly CGG) and TGS on the Utsira reprocessing project and expects to benefit from increased merger and acquisition activity in the Norwegian Continental Shelf.
The company noted that exploration and production activity in Egypt appears to be improving, with GUPCO recently announcing a discovery based on library data. However, management acknowledged that timing of late sales remains uncertain, though the general outlook has improved.
The following slide provides details on the company’s multi-client portfolio and ongoing initiatives:
In terms of investments, Aquila holds a stake in Capsol Technologies valued at $3.6 million as of Q1 2025. Capsol reached a final investment decision for the Stockholm Exergi project in March 2025, which management described as a "major milestone" for the company. Capsol is reportedly experiencing increased industry interest and strong pipeline growth.
Outlook and Strategic Initiatives
Looking ahead, Aquila highlighted the volatile commodity markets and high geopolitical uncertainty affecting oil prices in the short term. However, the company noted that oil demand is at an all-time high and projected to grow in the coming years, which could support increased exploration activity.
Several wells are expected to be drilled based on the Utsira data in 2025, potentially generating late sales for Aquila. The company continues to review strategic transactions and is evaluating potential distributions to shareholders and/or share repurchases.
Aquila’s stock closed at 0.8 on May 7, 2025, down 1.23% for the day. The shares have traded in a 52-week range of 0.46 to 0.938, suggesting that despite current challenges, investors see potential value in the company’s asset portfolio and improved cash position.
While the absence of revenue in Q1 2025 presents a challenge, the company’s improved cash position and debt-free balance sheet provide a foundation for navigating the current market environment while pursuing strategic opportunities.
Full presentation:
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