Argeo AS

Earnings Release • Oct 9, 2023

Argeo AS: Backlog and company update presentation

Argeo AS: Backlog and company update presentation

Asker, 09.10.2023 Offshore service company Argeo, has today published a company presentation enclosed to this release, in addition to providing the following project updates.

Update on backlog – in reference to earlier press releases now totals NOK 250 million with extended scope of work in final approval process. This will keep both vessels fully utilized into early Q2-2024.

October 2nd Argeo announced that they had, in principle, agreed with an O&G supermajor on a 3-month deep-water oil and gas inspection program starting in Q4 2023 with a duration of minimum 90 days with potential for further work extension. The extended work scope is close to be finalised and the total contract value will be published thereafter.

Additionally, Argeo are in principle expected to agree a Greenfield Exploration project with a client. The project is scheduled to commence in late Q4 2023 with a duration of 4-months. Argeo's newly acquired vessel from Shearwater will be utilized for this project. Final award announcement expected in November.

As of 1 July 2023, backlog amounted to NOK 83 million. Since Q2, NOK 250 million has been added to the backlog.

Tender update

Since our Q2 update, Argeo has converted tenders of NOK 250 million to backlog from the previously reported Submitted Tenders of NOK 850 million. As it stands, the Submitted Tenders now amount to NOK 600 million.

A further “in progress” (not-yet-submitted) tender amount to NOK 1200 million and status of this will be included in the company’s Q3 update 16 November 2023. In summary it’s a significant conversion rate from tenders to backlog and we expect to continue this trend going forward.

As a general note on the market, we see strong tender activity in our most important geomarket with deep-water projects in West-Africa and Brazil leading the bulk of activities for 2024 and beyond. Additionally, we experience a good scaling up of exploration for marine minerals and believe this vertical will be significant in the years to come with large projects in both the Pacific, Atlantic and Indian Oceans.

Financial updates

The company has successfully secured a new financing arrangement in the amount of NOK 131 million which has been obtained through a loan and credit agreement with a Norwegian bank.

Argeo has successfully secured a fully financed purchase agreement of three (3) new Hugin Autonomous Underwater Vehicles (AUVs) from Kongsberg with delivery 2023, 2024 and 2025 of NOK 275 million.

Early October, the company secured a financial agreement of up to NOK 40 million with the owner to facilitate the upgrade of the Argeo Searcher to attain full subsea capability.

Argeo is preparing for reactivation of the new vessel (SW Bell) to be used for upcoming work.

Forward looking statements

This press release includes forward looking statements, which do not reflect historical facts and may be identified by words such as "will", "estimate" and similar expressions and include statements relating to LOIs, Agreement, Backlog, contract duration and value and expected start dates, and other non-historical statements. Such forward looking statements are subject to risks, uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward-looking statements included herein, including risks related to contracting, including our ability to convert LOI/LOA into contracts, the final terms and start dates of such contracts, actual performance under operations, the risk that backlog may not be realized, and other risks and uncertainties described in the section.

For more information, please contact:

Trond Figenschou Crantz, CEO

Email: trond.crantz@argeo.no

Phone: +47 976 37 273

About Argeo

Argeo is an Offshore Service company with a mission to transform the ocean surveying and inspection industry by utilizing autonomous surface and underwater robotics solutions. Equipped with unique sensors and advanced digital imaging technology, the Autonomous Underwater Vehicles (AUV’s) will significantly increase efficiency and imaging quality in addition to contributing to significant reduction in CO2 emissions from operations for the global industry in which the Company operates.

The Company’s highly accurate digital models and digital twin solutions are based on geophysical, hydrographic, and geological methods from shallow waters to the deepest oceans for the market segments Oil & Gas, Renewables, Marine Minerals and Offshore Installations. Argeo was established in 2017 and has offices in Asker (Oslo), Tromsø, Stockholm, Houston, and Singapore. Since its incorporation, Argeo has carried out complex projects for some of Norway’s largest companies in the field.

The company is listed on The Euronext Growth in Oslo under the ticker: ARGEO.

Please visit www.argeo.no for more information.