Argeo : Interim Report Q1-2024

Q1 Report

2024

Argeo | Q1 Report 2024

Contents

CEO Letter	3
Financial Highlights	5
Main events Q1 2024	6
A complete subsea provider	7
Our verticals	8
Operational Report	9
Q1 2024 Financials	10
Notes	14
Argeo Fleet & Assets	19
Argeo Technology	20
ESG	22
Contact	25

CEO LETTER

CEO LETTER

I am very pleased to present our first quarter results for 2024, which demonstrate a clear strategic direction and significant progress.

Key financial highlights include:

All amounts in USD 1.000

Revenue:	9 467, up from 2 438 and increase of 288%
EBITDA:	2 909, up from -921 and increase of 416%
EBIT:	1 108, up from -1 722 and increase of 164%
Net profit:	1 987, up from -1 445 and increase of 238%
Backlog:	54 000 USD
	(Backlog from the start of the quarter was 64 million)

Argeo Searcher achieved 100% utilization this quarter, completing the Shell Nigeria project and mobilizing for the NCPOR project immediately afterward. This growth and the improved financial performance underscore the success of Argeo's strategic changes initiated in 2022. The Argeo Searcher was efficiently upgraded before starting the Shell project in West Africa. The project was completed with very good re- sults, thanks to our new Hugin Superior and the innovative Argeo LISTEN sensor systems, which inspected subsea infrastructure with 10 times the efficiency of traditional methods.

Following the Nigeria project, the Argeo Searcher proceeded to the Indian Ocean for the NCPOR Marine Mineral exploration project. Here, the Argeo LISTEN system again demonstrated its unique value, delivering good results in mineral resource detection and estimation.

Additionally, prior to this quarter, Argeo acquired and upgraded the Argeo Venture, transforming it from a seismic vessel to a subsea and

survey vessel in approximately four months. The Argeo Venture secured a $39 million contract with TotalEnergies in Namibia. However, it did not contribute to this quarter 's utilization rates, as it commenced the TotalEnergies contract after the quarter ended. We have produced USD 10 million (9 467 revenue) out of the total backlog of USD 64 mil- lion, and the remaining (not completed) backlog now totals USD 54 million after adding the Woodside project recently announced. Available utilization for 2024 is ~ three months (Q4) for Argeo Searcher and a potential 3'rd spread (charter vessel + Hugin 6000) project. The tender conversion rate in the quarter was 100% and more tenders are likely to convert to backlog going forward forging a very good year for Argeo.

Looking ahead, we expect revenues and EBITDA for the remaining quarters of 2024 to be stronger, with two spreads operational from Q2-2024 onward.

On the technical side, we achieved several new milestones with the full integration of the new Hugin Superior fleet. This ensures a reliable acquisition platform that meets our customers' expectations. Addition- ally, our turnkey data delivery platform enables us to provide near-on- demand product delivery, significantly enhancing customer satisfac- tion.

These achievements reflect our strategic focus and operational excel- lence, positioning us for sustained growth and value creation for our investors.

Market

There is significant growth in the traditional offshore segment for O&G but increasingly supported by activities in the marine minerals market. We are witnessing continued strengthening in the O&G deep water market, with rising rates across all sectors, bolstered by our company's ability to provide turnkey solutions. Our in-house technology has proven to be a gamechanger across all three verticals. A con-

Argeo | Q1 Report 2024

tinued focus on the deep to ultra-deep-water market is expected, with more acreage and projects being sanctioned, along with new greenfield projects anticipated for deep-water development. Lately we see an uptick in tenders in the global Offshore Wind (OWS) segment, in particular the floating OWS which requires Argeo's turnkey solutions.

Innovation & Technology

Our proprietary and unique electromagnetic sensing system, Argeo LISTEN, integrated with the Hugin Superior, has proven to be a significant success this quarter. It has established itself as a highly sought-after sensor system. With its innovative design and configuration, Argeo LISTEN enables Autonomous Underwater Vehicles (AUVs) to perform high-performance inspections of subsea pipeline cathodic protection systems with unparalleled sensitivity. This advancement allows for much faster and more efficient pipeline inspections compared to current methods using Remotely Operated Vehicles (ROVs). Addi- tionally, Argeo LISTEN excels in detecting marine mineral deposits, showcasing its exceptional sensitivity and accuracy.

Our digital platform, Argeo SCOPE, remains an integral part of our data delivery solutions. It has been further developed to facilitate onboard review of all acquired data using advanced 3D visualization on a collaborative and intuitive platform. This platform enhances the efficiency of inspection data assessment, allowing users to focus on the critical areas of infrastructure that require attention.

Trond E. Figenschou Crantz

CEO

Argeo LISTEN

Argeo | Q1 Report 2024

Financial Higlights

USD 9 467

Revenue Q1 2024

+288% YoY

A good first quarter with revenues up from 2 438 in Q1 2023 with only one spread operational in the quarter

USD 2 909 EBITDA Q1 2024 +416% YoY

EBITDA up from -921 in Q1 2023

USD 1 108 EBIT Q1 2024 +164% YoY

EIBIT up from -1 722 in Q1 2023

USD 54 000

Backlog Q1 2024

+1588% Since 2022

USD 1 987

Net Profit Q1 2024

+238% YoY

Up from -1 445 in Q1 2023

We have produced USD 10 million (9 467 revenue) out of the total backlog of USD 64 million. Remaining backlog (not completed) at the end of Q1 now totals USD 54 million

Main Events

Main events Q1 2024

• Argeo Searcher completed Shell Bonga asset inspection program
• Argeo signed NCPOR USD 14 million contract
• Argeo Searcher started NCPOR marine minerals (MM) program
• Argeo awarded TotalEnergies Namibia USD 39 million contract
• Argeo Venture completed reactivation and upgrade program
• Argeo secured another Hugin Superior AUV for Argeo Venture

A complete subsea service provider

from acquisition to	TURNKEY
actionable data	Final product

ROBUST AND MODERN

Vessels

SUPERIOR

AUV's

Argeo is a complete subsea service provider operating in three major verti- cals, oil & gas, marine minerals, and the renewables sector. We offer a unique package combining robust vessels, superior AUV's, advanced sensors and digital imaging technology and an intuitive digital platform that collects complex data and brings this to

life. With our own vessels and superior AUV's we are fast, flexible and in a unique position to offer full lifecycle services. Our services include survey, inspection, maintenance, and repair, increasing efficiency and reducing carbon footprint for our customers.

UNIQUE PATENTED

Sensor systems

Bringing complex data to life

in three key verticals

Argeo conducts ocean surveys & inspections using autonomous robotic solutions for three key markets, Oil & Gas, Marine Minerals and Renewables

More cost-efficient survey and inspection giving our clients

• Faster inspections

• Faster project turnaround

• Lower CO2 footprint

• Safer operations with lower HSE risk

Easy access to actionable data

• Rapid decision ready data to clients during mission and project lifecycle

• Intuitive visualizations of complex data

Oil & Gas

Argeo provides comprehensive services for the oil and gas industries, specializing in Inspection, Mainte- nance, Repair, and Survey (IRMS).

Our offerings include greenfield develop- ment, route survey connections with the installation of Floating Production Storage and Offloading units (FPSOs), and the inspection of existing pipelines, power cables, and sub- sea infrastructure. We conduct detailed sub- sea inspection programs and handle general maintenance activities. Additionally, we offer seismic support operations for Ocean Bottom Node (OBN) in collaboration with Shearwater Geo.

Marine Minerals

Argeo work with marine minerals companies and geological institutions to conduct exploration surveys for new licenses and resource estimation. They also perform environmental assessments before and after exploration and extraction activities.

Renewables

Argeo provides advanced survey and inspection services to the offshore wind industry using cutting-edge technology.

Our offerings include pre-installation and route surveys (IRMS), cable burial inspection, and underwater data collection for new areas. Argeo supports wind farm construction, infrastructure inspections, and offers multi-client services for greenfield acreage. These solutions ensure efficient and safe installation of wind turbines, promoting sustainable ocean wind energy.

Argeo | Q1 Report 2024

Operational report

Operational report

Argeo Searcher completed a significant upgrade in Norway before departing for its project in Nigeria. The vessel is now fully setup for any subsea scope work. Argeo Searcher arrived in Nigeria late December and completed the Bonga field project 20th of January 2024. A new 5-year bareboat was entered into effective January 1, 2024, with an option buyout clause of USD 8 million.

For Argeo Venture a reactivation and conversion program was completed after the quarter ended, early April 2024 when the vessel sailed to Namibia for a 9 months contract with Total.

In January 2024 Argeo signed an agreement with Kongsberg Maritime for the purchase of a Hugin Superior AUV (Auton- omous Underwater Vehicle) which was delivered in March 2024 and integrated onboard Argeo Venture for the TotalEn- ergies work in Namibia. This delivery was part of the comprehensive fleet expansion initiative launched in Q2 2023, for the lease of three new Kongsberg Hugin AUV's. The first Hugin Superior was delivered in November 2023, and is currently being used onboard Argeo Searcher.

Argeo Robotics has now been granted five patents from the Norwegian Industrial Patent office (Patentstyret) for subsea electromagnetic remote-sensing systems. The Argeo Robotics team has submitted another four patent applications for AUV related technology which consists of both sensor hardware and sensor applications.

Argeo Robotics has developed Argeo Listen, a unique electromagnetic sensor technology, enabling the use of AUVs for cathodic protection inspection of subsea infrastructure and has also become a key tool in marine mineral exploration. This technology has been a requirement for all marine min-

eral exploration and pipeline inspection projects performed by Argeo and has become a strong differentiator and competitive advantage for the company.

Argeo has also developed Argeo Whisper, a unique electromagnetic source system, that can be used for mandatory surveys to detect unexploded ordnances (UXO) and metal debris. It can also be used to determine the position and burial depth of power cables with an accuracy that can significantly reduce cable installation and maintenance costs for offshore wind power cables.

Argeo SCOPE, our proprietary digital platform for subsea data, incorporates all types of data from our projects, and enables fast, efficient, and informed decision for subsea field developments, inspections and required maintenance for Offshore Wind, Marine Mineral Exploration and Oil&Gas.

The Argeo organization has grown from 55 end of year 2023 to 70 employees during the quarter.

Q1 2024 FINANCIALS