Earnings call transcript: Viridien’s Q1 2025 revenue grows, stock dips

Published 29/04/2025, 17:44
 Earnings call transcript: Viridien’s Q1 2025 revenue grows, stock dips

Viridien SA reported a strong financial performance for the first quarter of 2025, with a 10% increase in revenue year-over-year, reaching $301 million. Despite these solid earnings, the company’s stock fell by 6.46% in after-hours trading. The decline in stock price followed the announcement of a net cash flow of negative $20 million, although excluding interest payments, the cash flow would have been positive at $22 million. The company also highlighted significant innovation in its product lineup and a reduction in gross debt by $200 million compared to the previous year. According to InvestingPro data, Viridien maintains a healthy current ratio of 1.83, indicating strong short-term liquidity, and has achieved a perfect Piotroski Score of 9, suggesting excellent financial strength.

Key Takeaways

  • Q1 2025 revenue rose by 10% year-over-year to $301 million.
  • EBITDA increased by 35% to $143 million, with a margin of 47%.
  • Stock price fell by 6.46% in after-hours trading.
  • Gross debt reduced by $200 million from the previous year.
  • Significant sales of Dilvation software and advances in imaging technology.

Company Performance

Viridien’s performance in the first quarter of 2025 was marked by robust revenue growth and significant improvements in profitability. The company reported a 35% increase in EBITDA, reaching $143 million, with an impressive margin of 47%. This performance was supported by strong sales of its Dilvation software and advancements in its elastic waveform imaging technology. Additionally, the company completed the acquisition of Laconia’s sparse node technology, enhancing its capabilities in the maritime and infrastructure sectors.

Financial Highlights

  • Revenue: $301 million, up 10% year-over-year
  • EBITDA: $143 million, up 35% year-over-year
  • Net Cash Flow: -$20 million (excluding interest payments:+$22 million)
  • Gross Debt: $1,120 million, reduced by $200 million from the previous year
  • Net Debt/EBITDA Ratio: 2x

Market Reaction

Following the earnings announcement, Viridien’s stock experienced a 6.46% drop in after-hours trading, closing at $49.58. This decline comes despite the company’s strong financial performance, possibly due to concerns over the negative net cash flow and potential market slowdowns. InvestingPro analysis suggests the stock is currently undervalued, with an attractive P/E ratio of 10.73 and EV/EBITDA of 2.77. While the stock has gained nearly 32% over the past six months, it remains well-positioned for potential upside according to analyst consensus. For detailed valuation metrics and additional insights, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Outlook & Guidance

Looking ahead, Viridien anticipates generating $100 million in net cash flow for the full year 2025, excluding refinancing costs. The company is closely monitoring macroeconomic uncertainty and expects relatively stable exploration and production capital expenditures. However, it acknowledges potential delays in multi-client projects and is focusing on high-end imaging work to drive future growth.

Executive Commentary

CEO Sophie Joaquin stated, "Our first quarter was marked by robust business performance, significant commercial wins, and solid profitability." CFO Jerome Roncer emphasized the company’s strategic focus, saying, "We believe our asset-light business model is truly designed to effectively mitigate any potential cash burn through the cycles."

Risks and Challenges

  • Potential market slowdowns impacting revenue growth.
  • Macro uncertainty affecting oil and gas prices.
  • Delays in multi-client projects could impact cash flow.
  • Dependence on favorable market conditions for offshore deepwater projects.
  • Competitive pressures in the geoscience sector.

Q&A

During the earnings call, analysts raised questions about the performance of new business segments and the contribution of the defense business, which accounts for 5-10% of the Sensing and Monitoring segment. The management also clarified that the net cash flow guidance excludes refinancing costs, addressing concerns about potential market slowdowns.

Full transcript - Viridien SA (VIRI) Q1 2025:

Nadia, Conference Operator: and thank you for standing by. Welcome to the Viridian First Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in listen only mode. After the speakers’ presentation, there will be the question and answer Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Jean Baptiste Soucille.

Please go ahead, sir.

Jean Baptiste Soucille, Corporate Finance and Investor Relations, Viridian: Thank you, Nadia. Yes, good morning and good afternoon, ladies and gentlemen. Welcome to this presentation of the Iridient’s First Quarter twenty twenty five Results. I’m Jean Baptiste Roussey, in charge of Corporate Finance and Investor Relations, and the call today is hosted from Paris, where Sophie Joaquin, our CEO and the Roncer, our Group CFO, will provide an overview of the results as well as comments on our outlook. Following the overview of the year, we will be pleased to take your questions.

And before I hand over the microphone to Sophie and Jerome, just a few words to tell you that I’ll leaving the company tomorrow. It has been an exciting year preparing and completing successfully the refinancing of our debt. And I wanted to thank Jerome and Sophie for giving me the opportunity to join the team a year ago and grow professionally and personally. Starting tomorrow, will be replaced by Alexandre, who is actually with us as well today. And Alexandre, actually, I could say that the share price almost doubled under my watch, and I wish you all the best.

Best of luck to do even more. Now, I leave you with Sophie.

Sophie Joaquin, CEO, Viridian: Thank you very much, Jean Baptiste, for your contribution over the last year, and I wish you the best. Welcome everyone and thank you for attending this presentation. Our market environment remained favorable during the first quarter, marked by robust business performance, significant commercial wins and solid profitability aligned with our long term ambition. Revenue grew by 10% and our EBITDA increased by 35%, achieving the strongest profitability for the first quarter over the past decade. Net cash flow was minus $20,000,000 or positive $22,000,000 when correcting for interest, which were exceptionally paid in Q1 versus historically in Q2.

Recent global developments with tariffs and additional production from OPEC plus have introduced uncertainty in the market. However, as of this call, we have not observed any significant changes in our clients’ behavior. We are primarily exposed to offshore deepwater projects, which require a longer term perspective, and during the quarter have seen our clients increasingly focused on reserve replacement and organic exploration. Outside of any global geopolitical or economic consideration, which may increase impact into the future, our first quarter was marked by two key events. First, our vessel capacity agreement ended in January, further enhancing our asset light strategy.

This transition provides us with significantly greater financial and operational flexibility. Second, we successfully delivered all targeted milestones to date from our financial roadmap, which we presented in our Q4 twenty twenty three call. This included the recent refinancing of our debt, which extended its maturity to the February and reduced the level of gross debt by $200,000,000 compared to a year ago by utilizing excess cash on our balance sheet. Our liquidity remains strong, bolstered by an increased RCS facility, which demonstrates the trust our banking partners have in the group. We reiterate our strong and continued commitment to reducing leverage, using our increasing cash generation, and looking forward to further growing our company and delivering increased value to our stakeholders.

We’ll go on to slide six now with DDE segment. DDE segment revenue grew 16% to $214,000,000 with adjusted EBITDA up 32% at $137,000,000 with both Geoscience and Earthdata contributing positively. Slide seven with Geoscience. Geoscience external revenue reached $110,000,000 up 25% compared to last year as we deliver on our strong backlog. There was also a positive impact from a significant sale of our Dilvation software.

We continue to invest in our high performance computing to enhance productivity by automating manual tasks and delivering the highest quality imaging results, truly leveraging our digital expertise. Looking at slide eight with Geoscience operational highlights. Our imaging business has shown exceptional strength driven by the global adoption of our advanced elastic for waveform imaging technology. North America exceeded expectations with standout performance, and we recently secured a seismic reimaging project in Algeria, highlighting sustained interest from clients in The Middle East and Africa for our highest quality imaging solutions. We continuously broaden our client base as the value of high end imaging becomes increasingly meaningful.

Additionally, we made a significant sale of our Geovation imaging software, as I mentioned earlier, which is typically sold to national oil companies to support their internal processing teams. In low carbon, we are working on a large critical mineral study in Saudi Arabia, leveraging our unique capabilities and strong brand recognition in the kingdom. We’ve also won a new project in the North Sea, per carbon sequestration, thanks to our innovative GeoSIM solution, which is a coupled res warranty mechanical modeling and simulation software technology. In HPC and digital, we onboarded two new clients on our cloud platform, one in material science and the other in image rendering. Going on to Earthdata now with slide nine.

Earthdata segment revenue grew 7% to $104,000,000 compared to last year, making it a strong Q1 historically. Our new KPI, cash EBITDA, grew 12% to 39,000,000 while we finalized the acquisition phase of our Laconia project. Now going on to slide 10 for the operational highlights. During the first quarter, we completed the Laconia sparse node acquisition in The US Gulf, and the early results are delivering game changing images. Our latest technology is revealing new geological details of

Jerome Roncer, Group CFO, Viridian: the

Sophie Joaquin, CEO, Viridian: subsurface, enabling our clients to significantly reduce their exploration risk. We believe that this new data this new data set is timely for the recently announced lease rounds. In Brazil, we received the environmental permit for the mega bar extension of our program in the Northeast, a frontier area of interest due to its similarities with Guyana and Suriname. Leveraging our digital leadership, we regularly invest in reprocessing projects, which allows us to extract more value from existing data at a marginal cost compared to new acquisitions. We are making great progress with an industry funded re imaging program in Ivory Coast, targeting a basin with the potential for multibillion barrel oil reserve.

In the low carbon space, finally, we completed two carbon storage screening projects for Continental Europe and have more opportunities in the pipeline. Like turning on to sensing and monitoring with slide 11. Our first quarter SMO segment revenue was $87,000,000 remaining nearly stable compared to the previous year. This stability was characterized by increased revenue from land activities and reduced revenue from marine activities. The adjusted EBITDA was $14,000,000 a margin of 16%, showing the positive effects of our restructuring plan.

Now on slide 12 with operational highlights. We are experiencing steady activity with national oil companies on land project and see strong interest in our nodal systems across a broad range of geographies. Latin America and North Africa are experiencing increasing activity, while in Asia and The Middle East activity remains sustained. Marine is driven by the sale of streamer sections to replace older equipment, as well as by leading acquisition software systems, Woka, for streamer navigation and Gator for seabed and module operations. This software helps our clients optimize their seismic operations.

And this technology was further adapted to support port and logistics activities and is sold as Marlin in the marketplace, bringing efficiency, transparency and enhanced safety to maritime operations. We had another successful sale of Marlin this quarter in Asia, contributing to our new businesses’ revenues. And further in our new businesses, we secured two contracts for new contracts for infrastructure monitoring in North America, and we’re also witnessing growing global demand for geotechnical monitoring, particularly in the rail and mining sectors. Our defense business is benefiting from supportive momentum and increased opportunities. And looking ahead, SMO should be well positioned for both growth and improved profitability through the cycles.

Let me now hand the floor to Jerome for comments on our financials.

Jerome Roncer, Group CFO, Viridian: Thank you, Sophie. Good morning and good afternoon, ladies and gentlemen. Let me start by thanking Jean Baptiste for his contribution over the last twelve months in revitalizing both our credit and equity story. Jean Baptiste, I wish you the best for your next endeavor. I’m also very pleased to welcome Alexandre Leroy to the team and know that Beretien will benefit from his strong experience as a sell side analyst and more recently as Investor Relations and Financing Director in big corporates.

Back to our Q1 results. As Sophie already mentioned, Q1 was a solid quarter for Veridian in terms of financial performance by achieving more than €300,000,000 of revenues, 47% EBITDA margin, and more than $20,000,000 of cash flow before interest. Let’s start with the P and L on slide 14. Segment revenue was up 10% year on year, reaching $3.00 $1,000,000 mainly driven by the growth of our Geoscience and Earth Data division, which increased by 257% respectively. Thanks to this positive business mix, segment EBITDA was up by 35% versus Q1 twenty twenty four at $143,000,000 This performance also benefited from the end of our vessel contractual commitment, as well as the SMO cost optimization plan starting in Q1 last year.

Net income was negative at minus CHF29 million, mainly due to more than CHF40 million of one off costs related to our recent refinancing, including fees and non core premium. Moving on to Group cash flow on slide 15. Our net cash flow for the quarter was minus CHF 20,000,000. This includes CHF 42,000,000 of interest payments made in Q1 related to the resumption of our old bonds as part of the refinancing process. Excluding these interest payments, which are usually paid in Q2, net cash flow would have reached $22,000,000 Note that these figures remain below Q1 ’twenty four, mainly due to an unfavorable change in working capital of $47,000,000 which can be explained by: one, the early collection in Q4 that we mentioned during our full year results secondly, higher update of sales that happened late in this quarter and lastly, some payable savings linked to the new Laconia service in The U.

Looking ahead, assuming moderate situation in the oil market, we continue to expect to achieve €100,000,000 of net cash flow for 2025, with a strong second half seasonality like previous years. Moving on to the balance sheet on slide 16. This reflects the situation post refinancing. The refinancing indeed happened on March 25, and this clearly shows the deleveraging trajectory we have embarked on over the past eighteen months. At the March ’25, our IFRS gross debt is circa $200,000,000 lower than one year ago, standing at $1,120,000,000 Our IFRS net debt stood at $974,000,000 leading to a two times net debt over EBITDA ratio.

Following the refinancing, we have also ample liquidity to operate, with circa €150,000,000 of cash in hand at the end of Q1, as well as a new SCF of €125,000,000 fully undrawn, out of which €15,000,000 of ancillary guarantee facility. Moving on to our financial roadmap on slide 17. We have now added one more tick with the completion of our refinancing. We are then left with our €100,000,000 net cash flow generation target for 2025. Note that we could have actually ticked twice the re rating box, since after the upgrade by Fitch and S and P last year, all three credit rating agencies assigned to the new bonds an issue rating one notch above the existing notes, I.

B2 for Moody’s, B for Incidentally, BB- Fitch. Slide 18 and the final slide for me, where I would like to emphasize our asset light business model, which provides significant operational and financial flexibility throughout the cycle. We believe this is quite unique, with no real comparable player in the oilfield service market offering this level of flexibility. Indeed, our three business segments have significant flexibility to weather a downturn scenario and remain cash generative. Starting with Geoscience, The majority of Geoscience cost base is related to personnel costs in key locations like UK, US, which can be optimized.

Secondly, most of our computing equipment in our HPC data centers are short term leads, giving us the ability not to renew leases that expire in any given quarter. Overall, this gives us the flexibility of just 75% of our cost base, positioning Virgin Geoscience favorably in case of a downturn scenario. Moving towards data. With the end of the Vessel Capacity Agreement in January 25, we no longer have Vessel Commitments and any associated penalties. This means that excluding our committed investments, which are already pre funded, we can reduce to zero our MultiClient investments in the event of a downturn.

Given that we target a minimum 80% pre funding on all MultiClient investments, our maximum exposure is therefore limited to 20%, which we can successfully mitigate in a downturn by scaling down other planned not committed investments. Finally, sensing and monitoring. Although this division is not completely asset light as we maintain some manufacturing capabilities, the cost optimization plan that we launched early last year has allowed us to optimize both our cost base and capital employed. As a result, we have successfully lowered the breakeven point of the business to match the lowest cycle performance levels since in 2022 and during COVID period. Overall, by activating all the levers I’ve just described across our three divisions, we believe that even under an adverse downturn scenario, such as during COVID, when revenues were slightly above $900,000,000 would still remain cash positive.

Our satellite business model is truly designed to effectively mitigate any potential cash burn through the cycles. I’m now handing the floor back to Sophie for some final remarks on our outlook.

Sophie Joaquin, CEO, Viridian: Thank you, Jerome. I’m on slide 20 now. Looking forward, the macro environment is expected to remain uncertain and potentially volatile. We are monitoring current trends closely along with the impact on oil and gas prices, which influence our clients’ reaction. At this time, we do not observe significant changes in our clients’ behaviour.

We anticipate that as long as Brent crude remains within the US65 dollars to US85 dollars per barrel range, particularly for the deepwater and the markets of the NOCs that are characterized by long term perspective, activity for Viridian will remain light today. Remember that we do not have exposure to The US land market. In this context, while overall E and P CapEx may experience a slight decline, we believe our clients will maintain budgets for high end imaging work, which is crucial for their efficiency and overall success. We may encounter delays in multi client projects and see some shifts in SMO deliveries, but our asset light model provides us the flexibility to adjust, protect our margins and preserve our cash flow generation. We have demonstrated our ability to navigate through economic cycle, particularly during the COVID pandemic, and today our company is stronger and better positioned.

Looking forward, we will continue to focus on what we can control to deliver the best value to our stakeholders? Our central assumption remains a moderately fluctuating oil market, leading to relatively stable E and P CapEx environment. Based on this assumption, we continue to anticipate generating approximately $100,000,000 in net cash flow in 2025. Thank you for your attention, and I now look forward to your questions.

Nadia, Conference Operator: Thank you. Dear participants, as a reminder, if you wish to ask a question, please press 11 on your telephone keypad and wait for your name to be announced. To withdraw a question, please press 11 again. Please standby. We’ll compile the QA and error studies.

It will take a few moments. And now we’re going to take our first question. And the question comes from the line of Jean Lucromanc from CIC Market Solutions. Your line is open. Please ask your question.

Jean Lucromanc, Analyst, CIC Market Solutions: Good afternoon. Congratulations on the refinancing. I have two questions actually. One about the noncore and HPC businesses. How did the sales evolve in terms of growth compared to last year?

And how do you see those continuing to evolve in the next few quarters? Second question is about Geoscience. You had a quite strong increase in your sales of plus 25%. Did you benefit from higher prices or was it only volumes?

Sophie Joaquin, CEO, Viridian: Okay. Yes. Hi. Let me try and answer your question. So, on new businesses and remember new businesses is the combination of low carbon, which is carbon sequestration, minerals and mining, digital, which includes HPC and infrastructure monitoring.

This actually, when we look at it in Q1, we had a bit of a slow start of the year compared to a year ago. Now, it’s not a business that is actually continues. Here and there, we do get some big deals that can skew the numbers from one quarter to another. So, at this point in time, we feel like we’re still on our trajectory. However, I want to point out a bit of a slowdown on the carbon sequestration side because of the regulatory, maybe the uncertainty around North America and as well some of the IOCs in Europe cutting their CapEx in that space.

So, that’s the first question. The second question is on Geoscience. And as you pointed out, we’ve had a very strong increase. Parts of it is linked to our strong backlog. So, we’re delivering through the backlog.

So, there is actually a volume increase. And also, there is that, duration sale that I pointed out. And this one creates a bit of, discontinuity if you want. I mean, duration sale, they can come as a block one quarter or the other and sort of distort the comparables. Thank you.

It’s a combination of the two, that one off and then the increased volume of activity.

Jean Lucromanc, Analyst, CIC Market Solutions: Well understood. Thank you so much.

Sophie Joaquin, CEO, Viridian: Sure. Thank

Nadia, Conference Operator: you. Now we’re going to take our next question. Just give us a moment. And the question comes from the line of Batiste Lebag from ODDO BHF. Your line is open.

Please ask your question.

Batiste Lebag, Analyst, ODDO BHF: Hi, good evening, everybody. Congratulations for the refinancing. Two questions from my side. The first one is related to your comments dedicated to the supportive environment for defense business. Can you give us some, let’s say, indication on what you are doing in this part of the business and what is the size in terms of contribution?

And second element, just a clarification regarding your guidance of net cash flow for 2025. Is it with or ex, let’s say, exceptional element due to the refinancing that you registered during Q1? Thank you.

Sophie Joaquin, CEO, Viridian: Okay. So good evening, Batiste. Let me take the first question while Jerome will give you the answer on the net cash flow. So, terms of the defence business, just decided to point it out because we do see a pickup in that space. Now, in terms of what we provide, as you can imagine, our sensors are really good at listening what’s going on and of course it’s something that’s quite handy and useful in the oceans, especially when you’re looking at security of the seafloor and security of the oceans.

And so, that includes adaptation of sort of streamer type of products for the defence industry and also umbilical cables that also are being sold to the defence industry. So, it’s a combination of different types of products and we are working with sort of as a tier two with the defence companies. In terms of what that represents right now, I would call it short of 10%, you know five to 10% of the SMO business. So it’s a just a small number, but this is something that we have hope can grow.

Jerome Roncer, Group CFO, Viridian: Regarding your second question, but is the the hundred million exclude the the 40,000,000 more or less cost attached to the refinancing. So it’s business as usual.

Batiste Lebag, Analyst, ODDO BHF: Okay. Thanks a lot for your clarification.

Nadia, Conference Operator: Thank you. And now we’re going to take our next question. And it comes from the line of Kevin Roger from Kepler Cheuvreux. Your line is open. Please ask your question.

Kevin Roger, Analyst, Kepler Cheuvreux: Yes. Good evening. Thanks for taking the question. I have three, if I may. The first one is you can give us a bit of, in a way, visibility granularity on the EBITDA margin at DDE, which came quite strong at 64%.

I guess there is a large part related to the end of the commitment with Shell Water, but I was wondering if there is any positive effect of late sales that have very positively contributed to the margin? Or if, in a sense, the 64% margin can be considered as a kind of run rate now? That would be the first one, please. The second one is on the CapEx. I really understand that you have a lot of flexibility now in terms of new survey because you do not have the commitment, etcetera.

But is there any, in a way, a sense that you can share with us on what’s your current plan right now in terms of investments for new survey, new data, so CapEx on new, I don’t know, nodes or three d, four d surveys? So what would be the CapEx for MultiClient this year? And the third one is on the, in a way, current macro environment. Sophie, you mentioned that up to now, has been no change in the discussion with your clients and that the guidance that you are providing us is assuming relatively flat E and P CapEx. But some of The U.

S. Names such as SLB, Baker, Alibutton, they were quite a bit more negative on that side than you saying that there would probably be a kind of mid- to high single digit decline in E and P CapEx. I was wondering, if they are correct, what would be in your view the impact on your expectation for this year, please?

Sophie Joaquin, CEO, Viridian: Maybe I’ll give you color on each of these from the sort of business standpoint. So first, good evening. Kevin, thanks for the questions and thanks for attending. And I’ll let Jerome add if he wants on the EBITDA side. But generally speaking, the high margin of DD is linked to volume.

So, there is just more revenue both on Geoscience and on EDA. And the duration sales, that’s why I pointed it out, is a big explanation of some of the increased margin because it’s just a software sale that sort of the software cost is there. And so, it’s just a 100% pull through basically. So, really creates that. After sales were good.

We were happy with that. And that’s why we’re saying hence my comment in saying that our clients are really going back towards organic exploration and we see more activity on that front. On the CapEx one, I think we gave some kind direction probably at some point that will be somewhere lower than the prior year, which was $2.50. We’re saying, you know, I’d say between 150 and 2 hundred. But the reason we don’t want to talk about CapEx is I don’t really know where we’ll end the year.

We could do more or less. What we’re going to be looking is at the cash EBITDA and the cash generation. What I see today directionally is that there’s demand for OBN, more OBN surveys in The US Gulf. It depends on prefunding. If we get good prefunding, we might go for it or not.

And we have a number actually of streamer surveys in the pipeline, but they’re pending environmental permitting or they’re pending governmental decisions. There’s a lot of sort of delays in that space. The one that most likely will be doing is the Northeast survey in Northeast Brazil survey that sort of has been in the pipeline and for which we got the permit. So that’s for this year. And in terms of the macro environment, I’ve been reading with attention that what the large UFS have been saying, Baker.

It’s a mix of different things. They all said that the big drop will come from North American land and that’s why I said we are not exposed to North American land. They recognize all of them that the cuts will be coming from certain, maybe some areas of the value chain more than others. So, I think the rig side and the drilling associated activities will be done because there’s less exploration rigs for example. But if you look at the comments from SLB, they were quite a bit on the what they call the digital side of their business, which is actually where they count the earth data the multi client and the Geoscience business.

So, I would say we’re pretty much aligned with their comments, but the parts that are negative, we’re not so exposed to.

Kevin Roger, Analyst, Kepler Cheuvreux: Okay. Understood. Very clear. And if I may, just as a follow-up, effectively, SLB, they were quite bullish on everything related to Geoscience, that digitization, etcetera. So have you seen a change in the competitive landscape here from SLB making a push on this segment?

Sophie Joaquin, CEO, Viridian: I think they’re a fair competitor. I think we’re all trying to improve on technology. I think our clients do appreciate our technology. They seem to be favoring our technology when it comes to very complex subsurface environments.

Kevin Roger, Analyst, Kepler Cheuvreux: Okay. Thanks a lot. Have a nice evening.

Sophie Joaquin, CEO, Viridian: Thank you. Do you have all you wanted to add?

Jerome Roncer, Group CFO, Viridian: Very quickly on the EBITDA, there is a as you said, there is clearly the it’s a positive impact of the full score of the additional revenues, both Geoscience and Health Data. And you’re right, there is also some positive impact, not 100% yet because we still have the remaining part to pay to Shearwater for the quarter. But a bit of positive already this quarter. And from Q2 onward, it will be 100 impact of Shearwater, both at the EBITDA and the cash flow.

Daniel Thompson, Analyst, BNP Paribas: Okay. Thanks a lot.

Nadia, Conference Operator: Thank you. Now we’re going to get our next question, and it comes from the line of Daniel Thompson from BNP Paribas. Your line is open. Please ask your question.

Daniel Thompson, Analyst, BNP Paribas: Hi, good evening. Yes, two questions, please. So firstly, on SMO, usual question on visibility on mega cruise surveys over the next twelve to eighteen months. Has anything changed here? You mentioned we could potentially see some slippage in these, but is there anything sort of towards the back end of this year that you’re factoring into your plan that looks particularly at risk?

And then secondly, just on transfer fees for the business. Obviously, there’s one big transaction, Chevron Hess, that is expected to close over the next twelve months or so. Could you give us any indication of the size of this one? And is it customary for the license fee to always be transferred? Yeah, just trying to figure out how discretionary this one is going to be.

Thank you.

Sophie Joaquin, CEO, Viridian: Yeah. Good evening, Danielle. On SMO, we’re not factoring this year any sort of enormous deal, but the land, as I pointed out, remains very active. As you all know, Saudi Arabia is sort of managing their CapEx, although they continue to be quite active on the seismic side, but they were going to go for extra crew and that is getting delayed, but there’s still a number of active crews there. But other parts like North Africa, Iberia is quite active.

Mexico actually, we hear I’ve heard the large OFS saying that for them Mexico was down, actually precisely quite active. And so, the land activity overall is the base activity is quite good. The part that’s not so active for us right now is the OBN, is the marine side on the ocean bottom nodes. So I’d say SMAO mega crude, nothing enormous, but still good base activity. On the transfer fee side, yes, you pointed out the transaction that we all have in sight.

I think it’s too early to say anything because it ends up being the result of the transfer fee depends on the data that actually the new company wants to transfer. And that is a part of that is being negotiated basically. So it’s a bit early, but I don’t we don’t expect it to be in sort of an extraordinary number. It would be as sort of a part of the expected level of transfer fee that we would have from one year to another.

Daniel Thompson, Analyst, BNP Paribas: Okay. Thank you for the color. Sure.

Nadia, Conference Operator: Thank you. Now we’re going to take our next question. And it comes from the line of Prithvi Bhatta from Bank of America. Your line is open. Please ask your question.

Prithvi Bhatta, Analyst, Bank of America: Yes. Good evening. Thanks a lot for taking my question. I’ll be very quick. It’s more of a clarification.

So on the net cash flow guidance of EUR 100,000,000, does it include the EUR 42,000,000 refinancing costs? Or does it exclude this? I know you have answered previously, but the line disconnected. So I just wanted clarification on

Jerome Roncer, Group CFO, Viridian: It exclude the 40 the the 40,000,000 of refinancing costs. Sorry. Excludes. Yes.

Prithvi Bhatta, Analyst, Bank of America: Thank you.

Daniel Thompson, Analyst, BNP Paribas: Sure.

Nadia, Conference Operator: Thank you. Speakers will just give a moment to our participants. There are no further questions for today. I would now like to hand the conference over to the management team for any closing remarks.

Sophie Joaquin, CEO, Viridian: Well, thank you very much for attending this call. I think our first quarter was quite straightforward and thank you again for your attention, and then look forward to interactions in the future. Thank you.

Jerome Roncer, Group CFO, Viridian: Thank you, indeed. Have a good evening.

Nadia, Conference Operator: This concludes today’s conference call. Thank you for participating. You may now all disconnect. Have a nice day.

Jerome Roncer, Group CFO, Viridian: And, Nadia?

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