Argeo AS

Earnings Release • Oct 21, 2024

Argeo ASA: Argeo announces a $13M deal in strategic equipment optimization

Argeo ASA: Argeo announces a $13M deal in strategic equipment optimization

Asker, 21.10.2024 Subsea service provider, Argeo ASA (the “Company” or “Argeo”), announces a USD 13 million transaction by divestment of non-strategic equipment and the entering into of a sale lease-back agreement for its upgraded Hugin 6000 as part of the Company's ongoing efforts to optimize its equipment pool and improve operational efficiency.

The sale of two SeaRaptors and the entering into of a sale lease-back for the Hugin 6000 AUVs totals an approx. USD 13 million transaction with net proceeds of approx. USD 7.7 million in cash to Argeo, after repayment of outstanding sellers’ credit on the units and downpayment on the new lease. In total these transactions will enhance the Company’s liquidity position and provide financial flexibility. Moving to a centralized common Hugin acquisition platform will also improve operational performance and reduce costs for support, training and personnel in addition to improved technical integration with Argeo’s sensor technology.

This transaction establishes the Company’s long term asset pool strategy of Hugin AUV’s financed by CSI Leasing and will, by completing the transaction, consist of three state-of-the-art systems with Argeo sensor technology embedded and integrated and an option to further extend with another Hugin system in 2025.

“We are pleased to announce these strategic adjustments of our technical asset pool, which are important steps in our plan to optimize our equipment portfolio,” says Argeo CEO, Trond Figenschou Crantz. “This deal underscores our commitment to enhancing operational performance through strategic asset management and financial improvement,” Crantz continues.

The Hugin 6000 sale lease-back agreement constitutes the final part of the above transaction and is subject to, inter alia, signing of final leasing documents with CSI Leasing and certain other conditions.

For more information, please contact:

Trond Figenschou Crantz, CEO

Email: trond.crantz@argeo.no

Phone: +47 976 37 273

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange announcement was published by Odd Erik Rudshaug, CFO Argeo ASA, on 21 October at 08:00 CEST.

About Argeo ASA

Argeo is a comprehensive subsea service provider, operating across three major sectors: Oil & Gas, Marine Minerals, and Renewables. The Company offers a unique package that integrates robust vessels, state-of-the-art autonomous underwater vehicles (AUVs), advanced sensors, digital imaging technology, and an intuitive digital platform designed to collect and visualize complex data.

With their own vessels and high-performance AUVs, Argeo delivers fast and flexible full-lifecycle services, including survey, inspection, maintenance, and repair, aimed at improving efficiency and reducing the carbon footprint for global, industry-leading clients.

Founded in 2020, Argeo has established offices in Asker (Oslo), Edinburgh, Houston, and Rio de Janeiro.

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

Please visit www.argeo.no for more information.