Earnings call transcript: Agio Q4 2024 reveals strong revenue growth

Agio’s Q4 2024 earnings call highlighted significant revenue growth, with a year-over-year increase to $5.4 million from $2.1 million. Despite this, the company reported an annual net loss of $6.9 million. The stock of Argeo AS (market cap: $25.64M) saw a slight increase of 0.93%, reflecting cautious market optimism. According to InvestingPro analysis, the company’s stock is currently trading near its 52-week low of $0.56, suggesting potential value opportunity for investors willing to weather near-term volatility.

Key Takeaways

• Agio’s Q4 2024 revenue surged nearly 450% year-over-year.
• The company remains a leader in autonomous underwater vehicle services.
• Agio is expanding its market presence into South America.
• Argeo AS’s stock price increased by 0.93%, closing at $6.45.

Company Performance

Agio demonstrated remarkable growth in Q4 2024, with revenue reaching $5.4 million, a substantial increase from $2.1 million in the same period last year. This growth reflects the company’s successful expansion and innovation strategies, particularly in the deepwater market. However, the annual net loss of $6.9 million highlights ongoing financial challenges.

Financial Highlights

• Q4 2024 Revenue: $5.4 million, up from $2.1 million in Q4 2023.
• Annual Growth: Nearly 450% compared to 2023.
• Full Year Revenue: Close to $54 million.
• Annual EBITDA: $6.8 million.
• Annual Net Loss: $6.9 million.
• Cash Position: $1 million at December end.

Market Reaction

Argeo AS’s stock experienced a modest increase of 0.93%, closing at $6.45. This movement suggests a cautiously optimistic market response, likely influenced by Agio’s strong revenue growth and innovative advancements, despite financial losses. InvestingPro data shows the stock has fallen over 60% in the past year, though analysts maintain a positive outlook with revenue growth forecast at 6.36% for FY2024.

Outlook & Guidance

Agio is targeting long-term contracts in the Inspection, Maintenance, and Repair (IMR) sector and plans to expand its vessel fleet. The company expects a total backlog of $190 million and an estimated EBITDA backlog of $57 million. Agio is also pursuing a significant contract in South America, with potential for 40% of activities in Brazil by the decade’s end.

Executive Commentary

CEO Trond highlighted Agio’s ability to finance future growth through normal financing channels, emphasizing the company’s innovative capabilities in deep-sea mineral detection. Trond also noted strong demand in the oil and gas deepwater business, a primary area for Agio.

Risks and Challenges

• The annual net loss and limited cash position may pose liquidity risks.
• High vessel utilization rates could lead to capacity constraints.
• Market expansion into new regions carries execution risks.
• Dependence on the oil and gas sector exposes Agio to industry volatility.
• Potential delays in securing long-term contracts could impact growth projections.

Full transcript - Argeo AS (ARGEO) Q4 2024:

Trond, CEO/Primary Presenter, Agio: Good morning. Welcome to Agios Q4 twenty twenty four Presentation. We’re gonna cover quite a few topics today, so probably a bit longer than usual, and we will have a Q and A session at the end of this presentation. We cover the market position, we’ll go into backlog and the tender status. We will give you an operational update, a couple of words on technology and the development that we’ve done there.

Ulderich will cover financials and we will take the Q and A’s after the outlook. So highlights. Let me first bring my apology for a weaker quarter than what we expected. Several reasons for this, as we have explained previously. We are still a small company and developing rapidly in the market, so that we have one of these situation can happen, mostly driven by prolonged mobilization for the geotechnical activities in Namibia and an earlier than anticipated startup for the MultiClient project in Suriname.

We will cover everything related to backlog in a separate slide, But in highlights, the quarter came in at $4.5400000.0 dollars Now obviously, growth from last year’s Q4. But on the downside, of course, we have a much lower EBITDA and net profit loss of minus SEK8.5 million, which is for the reasons I previously mentioned. Setting aside the quarter and looking at the year for 2024, we have had a very strong growth. So nearly 450% growth compared to 2023. And that is brought by mostly the two vessels that we’ve had in operation.

And keep in mind that Venture only started production in April. So it’s in fact not two full operational years for our two vessels. And then of course, our Q3 activity with Ocean Guardian on the offshore wind project for RWE (LON:0HA0) adds to this as well. But by and large, a year to date growth of nearly 450% delivered close to $54,000,000 and we will cover a bit on this later on. That gives a yearly EBITDA of $6,800,000 and a profit and loss or in loss in fact of minus $6,900,000 So as everyone knows, we completed a private placement of NOK 150,000,000 NOK.

The reason for it, as we have also explained, is that in late January, we were informed that we are in first position for a four year long AV and RV contract in South America. So that means that there is a lot of things to prepare for and seemingly we have time enough to prepare a lot of the equipment that we need for this has long delivery times. So there is some fairly unstable supply chain in the market for certain components and planning is obviously key to success in these projects. So that’s why we needed money quickly to get on top of things. We are also moving into the geotechnical space.

That’s a lesson learned from the Namibia project. We will talk a bit more about this later on. And additionally, SEK 40,000,000 for the general corporate purposes was needed. So highlights. As many saw, we signed a five year site investigation frame agreement with Total just before new year’s.

That indicates the interest that Total has in the services that our geo supply. Nearly 80% of the global site investigation services consist of geotechnical as well. So, that means that we start a given project as we did for Namibia with aov services, that’s the geophysical part, and then we carry on and do the geotechnical part based on the geophysical data that we already acquired. This is a logical step for GEO to capture within our value chain to the clients, and this is a demand from the clients and also a welcomed addition to our supply chain. So that means that we can increase our revenue and subsequently also EBITDAO by 15 to 20% in a general site investigation contract.

High demand in this market for it and we are perfectly positioned to take that step. As I mentioned in the beginning, we are in first place for a four year IMR contract in South America. This consists of both AUV and ROE, full data service delivery. We intend to use a geoventure for this contract, and there is an additional capex of $12,000,000 in subsea equipment, including ROVs and tooling for this project. We are in close negotiation with the end client.

I will be a little careful and say to say when we can announce, but at this point in time it’s going well. So hopefully in late Q1 or early Q2 we can comment on this more firmly. We are, as I mentioned, completing the Total Namibia project. It’s a little bit delayed due to weather, so the end estimate there is March. We were recently awarded this five year site investigation frame agreement with Total, and we are currently closing out the Sudinam multi client data acquisition.

So we expect to start the sales process on the Suriname project in q2 when all of the data is processed and ready for that sale process to start. Yeah, we will cover the market later on. The total expected backlog we will cover later on as well is $190,000,000 So it’s a huge step for RGO and an estimated EBITDA backlog of $57,000,000 Our current net debt, close to $45,000,000 and the expectancy that we have for Q2 and for ’twenty five is what we have delivered for Q2 ’twenty four and Q3 ’twenty four, so approximately 20,000,000 annualized representative for 2025. So that gives us an EBITDA backlog of 65% of equity value. So familiar slide, we are obviously moving into larger things when it comes to our service delivery.

We cover that in a later slide. The picture on the screen, venture in West Africa and Sartre in South America and Suriname. We are obviously looking at expanding further in South America, but also looking at Southeast Asia as well. The market is still in significant rise, so that has not changed. Maybe what I would like to add is that we have seen a half year past now with a bit of turbulence.

That has nothing to do with the market in itself, but more restructuring from many large end clients, some pulling back from renewables, some expanding to new geographical areas and so forth, which has had some negative effects on decision making for certain projects. Now we saw that for Sercher, and that’s why we started the multiclient a little earlier. But in all in all, the deepwater market is in tremendous growth and will continue as it’s for this decade. So we are very positive and our focus is obviously on oil and gas. Still today oil and gas is 70% of what we do, probably even more in the coming years, with large project under sanctioning from 2025 and ongoing.

So, what is basically leading the deepwater activities? So it’s subsea, subsea equipment, subsea services and so forth, where we are a challenger in that market. The clients that we have really appreciate and like what we do, which gives us a perhaps the most perfect marketing tool in this business and that is to leave a good reputation in the project that we have delivered. We are positive to the market and the selection that we have done and we believe this will be a positive trend over the years to come. So let’s pause a bit on this slide.

I thought it would be a good time to recap a bit of what we have done for Agio. We started basically from zero, and we started with an ID and a strategy in ’twenty one to ’twenty two, which was based on vessel of opportunity, containerized systems, more autonomy than what we are doing today and believe that this would be a welcomed service in the industry. We learned throughout ’22 that this wasn’t quite fitting what the clients wanted. Now we have been we have been working with autonomous solutions since ’22. We think it’s especially on the surface side on the USVs and I believe that what we have taken from this is that we have become the leading service provider utilizing AUVs to more efficiently map and inspect subsea equipment.

And of course, part of that is also that we are the leading company in exploring for marine minerals as well. That combined with the technology that we have developed puts us in a very good position, but we saw that this strategy did not work well, so we made a step change. We did that in going from ’22 to ’23, and we brought in the searcher as a fixed vessel for our activities and point out, you know, the client acquisition that we’ve had over those years, the size of the projects both in terms of length and in terms of value. So that has given us a significant step up. Now we took the venture as you all know in the fall of twenty three and we configured that vessel in about five months and went straight into operation in April for Total.

So it’s a significant step in all the senses that we deliver our services to. So we expanded our value chain as well to or our verticals from oil and gas to offshore wind to be included and expanded marine mineral activities as well. In the last three or four months of ’24, we started with geotechnical as well, so that means that we are taking that next step already. We invested in venture while in Namibia to bring that vessel to become a perfect Swiss army life, we can call it, in terms of delivering integrated projects going forward. It’s important also to remember that venture, let’s say we end up in March, so that’s a ten month project.

On those ten months we have delivered a project of close to $40,000,000 which is significant. And even though we have learned quite a lot on route, which we have sorted out now, this leaves a very good footprint on the client base and in terms of the services that we have delivered. So now we are taking a step forward to the right and what we are going to do now in ’twenty five and ’twenty six. So our current number of employees still running at about 110 people, and we are now going into the imr space, which I’ve talked about quite a few times before both on quarterly and all other public presentations. But it’s important for us as a company to every time we take a step like we have explained here that we leave what we’ve done in the past with a very good performance, and that we have done.

And now we move to the right and we start with full imr integration. We expand the oil and gas vertical quite massively, actually. And that means that we are now in play for long term contracts, which has been the goal all the time, to get to a place where you can balance the backlog with shorter term high yielding contracts with long term contracts, which secures both revenues, EBITDA and further growth in the company. So what is it that strategic roadmap means? So obviously we are too low on the vessel side.

So we have been planning for a while more vessels. We have quite a few good options and what that private placement also made us ready for is a financing plan consisting of bonds and direct lending. So, we are now in a position where we can finance future growth more on the normal financing track that larger company has. So, that means that we are, when business demands it, we can launch both one and two additional vessels. We have already started the insourcing of geotechnical capability and we are offering that already now in 2025 for any future projects on any vessel, basically.

So very smart solution we have found, much more efficient and gives us the full value chain of site investigation projects in all three verticals. And that’s important to remember. You know, the geophysical and the geotechnical part is important not only in oil and gas or in greenfield, all tiebacks in oil and gas, all greenfields in offshore wind projects, and also new exploration areas in marine minerals. So it fits into our strategy really well. Then we need to add rov to start to become that full integrated imr service provider, something we worked on for quite a bit.

Now we have a very good plan even with financing in place. Long lead times as I mentioned earlier, the first new rv plus tooling delivery is scheduled for q1 twenty six. And then we have optional a second delivery of two one two deliveries in q2 twenty six or later if we so choose. I’ve also spoken many times on scale up in Brazil. We started doing a small project back in, I believe it was twenty two-twenty three, AUV based.

And we’ve had a good presence there on the business side, track to business, talking to clients, getting ready for large activities. So now we are launching a scale up in Brazil. It will start from h2 in ’25 and gives us the full scale operational capability that we need to run one, two, three or four vessels in Brazil, which is a very important market. It’s the only market where you have long term contracts, deep water and massive activities. So that’s important for us and I believe that we will have more than 40% of our activities in Brazil in this decade.

So all of these activities that brings our GEO to a fully integrated subsea company. We will have the vessels, we will have the equipment, we will have the people, we will have the unique sensor packages that we have developed unparalleled in the market, and the final turnkey product. So that gives us a good setup to be a serious challenger in any two market that we enter. So we are in final negotiations. We are in what we call a pole position for this four year contract with a large oil company.

Whether or not this takes one week or it takes four weeks, we don’t know. It requires additional equipment. As I mentioned is $12,000,000 whereas $4,500,000 paid in ’25 and funded with equity plus additional financing offers that we already have in place. GEO is also in contention for a second four year contract, we’ll come back to that on the tender side, although lower ranked, and I believe that that information will probably be available April at the earliest. All the in house tools that we have developed will be part of this project, So puts us in pole position for larger activities and more activities in the South American market.

So we covered some of the things that we are doing in the geotechnical space. As I mentioned, site investigation consists of two main tracks. The first is the survey or geophysical part as we do with AAVs, which by any measure we have become the leading provider of globally. Then we have the geotechnical sampling, which is based on the geophysical ones that we have acquired, And now we have spent the money in terms of reading our GeoVenture to deliver this whole value chain. And I can tell you that this is something our largest clients all appreciate and are very happy to see.

Yeah, I think more or less more of the same. Just perhaps mentioning that $6,000,000 that we have in uses for geotech includes the vessel configuration, all the things that we did in Namibia, but also the staff that is required. And perhaps the punchline here is that it increases the value of our services with 15% to 20%. It also gives us an opportunity to have short term vessels in seasons for given projects like we have done for RWE and for Oersted and so forth. There’s a large scope seasonally where we have the now the capability and the experience to put everything on board one vessel to do projects in the uptimes or the good season times in the North Sea and elsewhere in the world.

So as I mentioned, close to 70% is oil and gas, 17% is marine minerals. That’s the distribution per market. And of course, a little less on the renewable side, mostly for the RWE project. But we’ve had a conscious thought about this. We have elected not to dive into the renewables market, but do a project by project basis where we can get the required revenue and EBITDA that we need to do these projects, and that has worked well so far.

You know, we had amazingly good feedback from RWE and the project we did in California. Distribution per product, 80% survey and inspection, and the rest is exploration, which is obviously minerals and a little oil and gas. And then we are significantly larger in the Europe, Middle East and Africa domain than we are in the North And South America currently. And Asia Pacific is the mineral project that we did in the Indian Ocean, but we have plans to expand that geo market as we continue. So backlog.

This is the slide or the setup that we will present backlog and tender status going forward. You will see on the left hand side, you will see the development quarter by quarter, and you will see the total backlog indicated in a separate graph plus written out below. So what is that backlog consisting of? $40,000,000 is basically something we produce for the most of it in Q1. We have an additional hanging part from the end support project that we had to leave behind because we mobilized for Woodside (OTC:WOPEY) in South America.

We will pick that up with whatever vessel is closest available to the area so that consists of 3 to $4,000,000 And then we have $176,000,000 in expected contracts, which includes about $23,000,000 in West Africa and South America. So in total, our backlog is $190,000,000 which includes expected contracts and final negotiation. On the tender side, we have 160,000,000 left over. So we for those who remember, in Q3, we had $360,000,000 in tenders. Now we have converted quite a lot of that to our total backlog for now.

And then from that, we have 160,000,000 left. I’m not gonna guess too much on when these tenders have decision times, but a good visibility could be April, May. Operational update. I think we covered this. Completion target for searches February on the Suriname project.

We have three or four tenders in South America that we are waiting to finalize. Project status, a little bit delayed due to weather. The same is the fact with Venture, which has a bit of weather delay. We expect to be completed in March, and we expect that venture will continue in Africa for twenty twenty five, the entire year. The containerized solution that we did this deal on in Q4 is on its way to Kongsberg for an upgrade and inclusion of Agios specialized sensors.

And most likely target is either Mediterranean or maybe North South America. The argus usv we have done some deep towing in the quarter. It’s now working well and will be used as a force multiplier and shallow water autonomous solution for us going forward. Utilization wise, performance somewhat tempered by weather, of course. Utilization for Sertje was 68%.

That is due to a bit of yard stay and fixing of the Woodside and then mobilizing for the multi client project for Suriname. The venture, same thing, 100% utilization as it had all the time, but a bit tampered obviously by the yard stay, but also even though that is not capitalized and included in the performance, it’s mostly weather and the startup of the geotechnical program. Adio Argus USV, for project based, so we keep that in mind. The utilization has been 100% and performance about 75%. And the containerized 02/2006 is now idle or on its way to upgrade.

So something we started in the quarter was a roadmap to financial discipline and operational success as we call it. So it’s a company wide objective, mainly focusing on cost savings. We obviously have built the company very, very quickly, so that means that some of the agreements we have can be improved. We can improve planning and forecasting quite a lot. Now when we have the full setup of super skilled people internally.

We can increase our operational efficiency, so that’s our KPI for everyone in the company, which again will lead to improved EBITDAO. Cost control focuses on reducing vessel OPEX of course, and that gives us a more competitive commercial focus. We are able to improve our risk mitigations, continue our safe and efficient operation. And I would like to add that, that we have a very strong reputation by our client base in how well we are doing on the HSEQ side. So all of that, maximize revenue from all our assets, of course, is important.

We would like to improve our cost and planning for yard stays. We saw that from Namibia. It’s not always as easy as it has been for us on previous project. When we’ve done that in Norway and Las Palmas and so on, there can be areas where that is challenging, and of course reduce financial surprises. So all of this will result in real EBITDA uplift.

So where are we on the project side? As I mentioned, obviously the shell and the RWE project is complete. We have about $3,000,000 to $4,000,000 remaining on the end support project, the last phase. It’s something we elect to do when we have a vessel closest to that project. It’s not far from Cape Town.

And then we have the TotalEnergies (EPA:TTEF) project in Namibia, which we expect to end March. Woodside is done and the Suriname project is ending the acquisition phase February. And then it’s a bit of data processing and so forth before we start the sales process, which we have a strong fate and will be positive. These are all slides. So technology side, we quite a few steps when it comes to RGOR lesson.

This has become both an integrated inspection and exploration tool. So we have now since the last quarter, we have proven that we can detect deep sea minerals with this system on an AUV. So that’s a fantastic result, probably the only sensor in the world who can do that. We have also proven it for majors for pipeline inspection. We hope to be running a webinar where we can show some of these results in not too long time.

And please keep that in mind. The webinars that we run are all marketed on LinkedIn, so it’s available both recorded and live going forward. We have also come quite a way forward with Audio Whisper, which is the active version of LISN. We have tested it and proven that it has a really strong potential for everything below the seabed in terms of detectability, and we can put it on an rov, we can put it on auv, even a towed solution as well. So we expect a lot from that going forward, and all of this can further be distinguished into a discovery solution whenever, you know, the larger exploration scopes kick off in the mineral business.

So in total, seven industrial patents since we started this technology roadmap, which is very good news. These are obviously protected globally in all the markets which is of interest to us. And finally, AudioScope, our digital solution. A lot of progress done here as well. So we are basically presenting all of the data now from Suriname in ARGIOSCOPE.

So it’s become both a sales portal and a visual aid and tool for all of the data that we acquire with the systems that we use. And we have some really cool plans for our Dioscope going forward as well. So I will now hand over to Olerik for the financials before we take the Q and A afterwards. Thank you, Edron.

Olerik, CFO/Financial Lead, Agio: So revenue in Q4 was $5,400,000 compared to $2,100,000 in the same quarter last year. EBITDA minus $5,700,000 down from minus $2,200,000 in ’thirty three million dollars EBIT minus 7,900,000.0, and that is also down from the same quarter last year, when it was minus 6,400,000.0. And we recorded a loss in quarter of 8,500,000.0, which is a small improvement from the same quarter last year, when it was minus 9.4. We move over to the balance sheet. Total right of use assets were $26,000,000 in the December.

And this includes the two Huygens Superior AUVs, which we have on lease, and the bareboat charter on Agiosarche and also a few office leases. Property, plant and equipment and all the non current assets was $52,000,000 This includes RGOVenture, the Hoeghien six thousand AUV, the Argus USV RGOSCOPE, and now also this multi client library from the project we have in Suriname. Current assets were 21,000,000 in the December. If we look at equity and liabilities, lease liabilities related to the right of use assets were 24,000,000 And this includes both current and non current liabilities. The same for the interest bearing liabilities, which is also current and non current, dollars 21,000,000.

This includes the loan we have from Innovation Norway, the loan on Agio Venture and now also this new loan we have on the Huguen six thousand EUV. Other current liabilities, 21,000,000 and 33,000,000 in equity. Cash flow in Q4, we started the quarter with $5,000,000 in the October. Cash from operation was minus 3,700,000.0. We had investment activities over $4,000,000 This was mainly CapEx for the Agio Ventures upgrade and preparation for this Geotech work in Namibia.

And 400,000.0 in development expenditures, mostly related to the development of our Geoscope. And 3,200,000.0 of operating expenses were capitalized to the balance sheet in the quarter for the MultiClient project in Suriname. And then we received SEK 900,000.0 in proceeds from the sale of these two Sea Reptors AUVs in Q4. Most of it came in Q3 and there is now NOK 900,000.0 remaining to be paid in Q1 this year. Financing activities, also positive with $2,000,000 Main reason for that is the proceeds from the sale of the Helgien six thousand AUV.

We sold it for $6,000,000 but we have also financed 2,700,000.0 upgrade over that unit. 1,200,000.0 in lease payments, 3,100,000.0 in the impairment or long term debt and 1,600,000.0 in interest payments in the quarter. We had some FX adjustments and all this left us with $1,000,000 in cash at the December. In the second quarter and in the third quarter last year, we had good financial performance, in line with our expected run rate of $10,000,000 per vessel per year. Q4 was slower than this.

So we have to show with these two graphs, the earnings bridge from Q3 and to Q4. In Q3 last year, we had $23,000,000 in revenue. And as we have heard earlier, GeoVenture was in dock for sixty days during the quarter, which reduced the revenue for that operation with $5,000,000 And Serge, I worked on this multiclient project in Suriname with no funding yet. So revenue for Surcher was 6,500,000.0 less in Q4 than it was in Q3. This containerized solution we have with the Hoeghgen six thousand AUV worked on a project in Q3 twenty twenty four, but was idle in Q4.

So this resulted in $6,000,000 in reduction of revenue for that unit. And so with some other minor changes, it gave us, all this gave us the $5,000,000 in revenue in Q4. The effect on EBITDA is approximately the same, but offset by some cost reductions for the surge shed, since we capitalized 3,200,000.0 in OpEx to the balance sheet. That gave a positive effect on the EBITDA. And we also, we didn’t have any operating cost on this containerized, the Huygens six thousand solution.

The operating cost on that unit is lower and it is idle. It’s only insurance and some maintenance and storage cost. So EBITDA in Q4 was then reduced from 5,400,000.0 in Q3 twenty twenty four to minus 5,700,000.0 in Q4. And so then I think we have reached the end of this presentation and open up for questions unless you want to say a few words about the outlook.

Trond, CEO/Primary Presenter, Agio: No, I think we’ve covered most of it. We continue to see a very strong demand in the Oil and Gas deepwater business, which is our prime area. Yes, and I think we covered all the things that is here. So we can start with the Q and A.

Moderator/Q&A Facilitator, Agio: Thank you, Trond. Before we start, I would like to mention that there are certain questions that won’t be answered either because they’ve been covered by the presentation or because we’ve we are restricted by the stock exchange regulations. So but we’ll start with the first one. We have time for a few. What about additional work for Agio Venture in West Africa after it’s completed its current contract with Total Namibia?

Can you elaborate?

Trond, CEO/Primary Presenter, Agio: Not. I think I I covered it very well. We will continue in in Africa, and there are discussion on some additional work outside of Africa, but that will be reported when we get to that point. But I think it’s important just to listen to what we say, right? And what we say is that our expected backlog is for a search and venture and a bit back and forth is the what we have reported now in in this presentation.

A total backlog of 190,000,000, and currently, we are looking at if we cover also the Mediterranean, West Africa, and South America, we’re probably close to 300,000,000 for 2025, which is in one way or form in tender and negotiations.

Moderator/Q&A Facilitator, Agio: Thank you. Now can you say anything about how much of the payment from the Namibia contract with Total that you have received?

Trond, CEO/Primary Presenter, Agio: I’ll leave that to our financial genius here.

Olerik, CFO/Financial Lead, Agio: I think, well, we have been on a fixed payment schedule with Total. So and we have $14,000,000 left in backlog now in 2025 and I think the cash receipts are approximately the same.

Moderator/Q&A Facilitator, Agio: Thank you. I think you might have covered some of this in the presentation, but people a few questions have arrived regarding the multi client work and how how the revenues work, how that whole process works. So can you say something about whether they are pre funded or when can how does the revenue flow?

Trond, CEO/Primary Presenter, Agio: Well, I think Ovek and myself covered that. You know, we we have no pre funding on this mostly because we didn’t have time, right? And we had this opportunity in this space to start this project or else we would not have time to do it, right? So that means that we have decision and that is to go in and capitalize on that opportunity and start acquiring the data, which is what we did. And then the sales process will start in Q2, which is when we have processed all of the data and can visually show the clients some of the results.

So I would say further to that that Suriname is a very, very interesting market. There’s a lot of activity there. We are early in this market where a lot of the larger clients have barely started the drilling campaigns, but with good results as for now. And I think also it’s important to mention that typically, if you compare multi client to contract work, we see everything from two to 2.5 x multiple on the sales return on multi client versus contract. So it’s a good business plan behind it.

And we have a life cycle of the data, which is close to thirty years. So they cover the whole life cycle of the development of the field for many activities going forward. So that was the decision and the way we went about it, and yeah, when when we start to acquire the clients for data, we will let you know, but keep in mind this is a we are leasing out data, we own them ourselves. Yeah.

Moderator/Q&A Facilitator, Agio: Thank you. And last question for today is charter hire for venture during yard stay is not capitalized during Q4. Will this be capitalized during Q1? If you can comment on it.

Olerik, CFO/Financial Lead, Agio: Charter AFO Venture?

Moderator/Q&A Facilitator, Agio: Yes. It says Charter AFO Venture during Yards Day is not capitalized during Q4. Will it be capitalized during Q1?

Olerik, CFO/Financial Lead, Agio: No. I mean, we did not capitalize in Q4 when it was in the yard. So I’m not sure I understand the question correct, but we will not capitalize now in Q1 because we stayed in yard in Q4. And now we are in operation, so there is nothing to capitalize for Q1 actually. So yes.

Moderator/Q&A Facilitator, Agio: Thank you. And that’s it for today.

Trond, CEO/Primary Presenter, Agio: Thank you.

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