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

21 Oct 2024 08:00 CEST

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.

More information:
Access the news on Oslo Bors NewsWeb site