CGG — Call Transcript 2025

Good day, and thank you for standing by. Welcome to the Viridien third quarter 2025 financial results conference call and webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be the question-and-answer session. To ask a question during the session, you need to press star one one on your telephone keypad. You will then hear an automated message advising your hand is raised. To withdraw a question, please press star one and one again. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link anytime during the live event. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Alexandre Leroy. Please go ahead. Good morning and good afternoon, everyone. Thank you for joining us today for Viridien's Q3 2025 results presentation. I'm Alexandre Leroy, Head of Investor Relations and Corporate Finance. We are hosting today's call from Paris, and I'm pleased to be joined by Sophie Zurquiyah, our Chair and CEO, and Jérôme Serve, Group CFO, who will walk you through our performance. Before we begin, a few housekeeping items. This call is being recorded and is accessible via both phone and online platforms. An audio replay will be available shortly on our website, www.viridiengroup.com. The presentation slides are also available for download from the website. Please note that today's presentation includes forward-looking statements. Actual results may differ materially from those expressed or implied today. Relevant risk factors are detailed in our 2024 universal registration document filed with the French Financial Markets Authority, AMF. As usual, we'll conclude with a Q&A session. Finally, a quick reminder that Viridien comments primarily on segment figures which reflect our internal management reporting. These differ from IFRS numbers also published today due to IFRS 15 impacts on our Earth Data Business Accounting. With that, I'll now hand over to management, starting with Sophie, who will take you through the key business highlights for the quarter. Sophie, the floor is yours. Thank you, Alexandre. Good morning and good afternoon, ladies and gentlemen. I'm now on slide two. Q3 2025 markets marked another strong quarter, both operationally and financially. Operationally, our Geoscience business continued to deliver robust results, leveraging market-leading technologies that addressed critical industry needs and drive value across both exploration and production. Earth Data late sales were particularly strong, fueled by sustained customer demand for our advanced data sets in mature and strategic frontier basins. This momentum was further supported by transfer fees from recent client M&A transactions. In Sensing and Monitoring, the land segment maintained solid performance, contributing meaningfully to the quarter. Financially, segment revenue reached $313 million, a 27% increase Segment-Adjusted EBITDA rose to $167 million, up 70% year-on-year. Net cash flow generation totaled $53 million for the quarter, bringing the year-to-date figure to $62 million as of September 2025. We remain confident in our outlook. Our asset-light strategy, our focus on high-end technical solutions, and disciplined multi-client approach drive strong performance. Combined with supportive market fundamentals and a solid backlog, we confirm our full-year net cash flow target of $100 million. Let me re-emphasize, this $100 million excludes any potential cashing from overdue receivables from Pemex. Moving on to slide four. Q3 2025 was another solid quarter, with external revenue rising 5% year-on-year to $108 million. Activity remained strong in Geoscience, driven by large ocean-bottom node imaging projects in key mature basins, particularly in offshore fields in Brazil and in the U.S. Gulf, where clients rely on our technology to optimize production. The Middle East also remained active, especially Abu Dhabi, where significant volumes of data were acquired. Despite a volatile oil price environment, order intake remained robust, underscoring our strategy and sustained industry demand for high-end imaging solutions that enhance exploration success and production efficiency in increasingly complex oil fields. Notably, over 50% of our Geoscience revenue is tied to development and production activity, making this business sensitive to oil price fluctuations compared to more exploration-driven segments. At the end of September, our backlog stood at $290 million, providing strong visibility for sustained activity and cash generation, not only for the remainder of the year but also into the first half of 2026. We remain confident in the resilience of our Geoscience business, supported by a focus on complex offshore projects, long-term partnerships with value-driven clients, including leading IOCs and NOCs, high-end OBN imaging, which plays a pivotal role in development and infrastructure-led exploration. This is an area where we lead the industry. Let's go to slide five. It illustrates a tangible example of how our Geoscience imaging services directly contribute to optimizing field production, even in the most complex reservoirs. The image showcases BP's Atlantis field in the U.S. Gulf, but the same approach applies to other challenging environments, including Brazil, Norway, Angola, and beyond. In this case, we partnered closely with the operator to deliver precise high-end imaging of 4D OBN surveys, that is, repeated ocean-bottom node surveys over time. This enabled a detailed monitoring of fluid movement within the reservoir, allowing the operator to strategically inject fluids to enhance hydrocarbon recovery, optimize overall field performance, and accurately position and drill new wells while minimizing drilling risk. For the operator, this translates into optimized production, improved economics, and a lower carbon footprint across both existing and new infrastructure. For Viridien, it means recurring business anchored in production activities, strong exposure to development-led operations, and deep long-term relationships with clients who value our expertise in imaging complex reservoirs offshore, especially through high-end OBN where we lead the industry. Now turning to slide six for the Earth Data Performance Review. In Q3 2025, EDA delivered a very strong performance, with revenues up 63% year-on-year. This growth was driven by two key factors: sustained industry demand for high-quality data, both in mature basins and high-potential frontier areas where we are strategically positioned, and transfer fees stemming from recent client M&A activity within the industry. Excluding transfer fees, which are a standard component of our Earth Data business, after-sales were strong. While the scale of transfer fees can vary year by year, their contribution this quarter was notable. Operationally, we made good progress on the Megabar Extension Phase I project in Brazil, reinforcing our presence in this attractive emerging basin. We're actively engaged in discussions for new projects in the U.S. Gulf and Eastern Mediterranean, with the latter showing renewed exploration interest, particularly in Egypt, as highlighted in recent industry headlines. Looking ahead, we remain confident in the long-term value and performance of our multi-client library, underpinned by the quality and relevance of our data sets, the strategic geographical focus, and our disciplined asset-light investment approach. Importantly, E&P companies are reaffirming their commitment to selective exploration, maintaining budgets despite potential short-term macroeconomic headwinds. Several countries are also evolving their regulatory frameworks to attract investment through licensing rounds and other incentives, which should further support multi-client sales momentum. As of September 2025, our Earth Data Library net book values stood at $534 million, concentrated in our most active offshore regions, including Norway, Brazil, and the U.S. Gulf. Now on slide seven, I would like to highlight a highly valuable project for our clients, one that is also cash-generative for Viridien. This project is located offshore Uruguay, where we hold the marketing rights for 25,000 sq km of legacy streamer data acquired between 2012 and 2017. Recognizing Uruguay early on as a promising frontier area, we strategically entered the market by leveraging our high-end imaging technologies. The data set was reimaged using our latest innovation, notably our unique TLFWI, resulting in a remarkable improvement in image quality. This led to the identification of multiple high-potential prospects, sparking strong client interest. Projects like this that leverage our imaging leadership typically receive hyper-funding and represent $30 million-$40 million, or 15%-20% of our annual multi-client CapEx. They are very attractive for Viridien because they allow us to unlock new frontier plays with minimal risk and high return, maximize the value of legacy data, and strengthen the relationships with local authorities, a key success factor for long-term engagement and success. This approach not only delivers meaningful value to our clients by enabling better-informed exploration decisions, but also reinforces Viridien's strategic positioning in frontier basins and supports our cash-generation objectives. Now moving on to slide eight, covering Sensing and Monitoring performance. In Q3 2025, SMO revenue grew 16% year-on-year, reaching $69 million. While our marine segment showed improvement compared to last year, momentum remained subdued. Overall growth remains primarily driven by the land segment, which continues to perform strongly. Our land nodal system, WiNG, is gaining traction, with expanding sales across Asia and Latin America, reflecting growing market adoption. In marine, our Tune Pulse source is now deployed across all sparse OBN surveys in the U.S. Gulf. It is increasingly recognized as the reference solution for acquisitions requiring low-frequency signals, essentially for high-end subsurface imaging. Let's focus on land, as shown on slide nine. Activity remains resilient and well-diversified, supported by the healthy mix of flagship high-productivity surveys underway in North America, where we currently have over 80,000 nodes delivering excellent data quality. Multiple medium to small crews are active across South America, the Middle East, and Asia, providing a broad geographical track record and install base. Technology momentum is also encouraging. We're seeing strong industry interest in AXA, our new job-only nodal solution, which was recently showcased at the Image Trade Show in the U.S., following its debut at EAGE in France last June. We expect to see AXA orders strengthening our SMO business in 2026. Under our new businesses initiative, we have also achieved a milestone with the first deployment of one of our mainstream nodes for hydrogen projects, expanding our reach into emerging energy sectors. It's worth noting that even in the absence of mega crews, SMO has demonstrated its resilience thanks to our deep market penetration, optimized operational structure, and strong reputation for quality and customer service. With that, I'll hand over to Jérôme, who will walk you through the financial performance review. Thank you, Sophie. Good morning and good afternoon, everyone. We are now on slide 11, covering group segment revenue. Over the first nine months of 2025, we generated $888 million, up 14% year-on-year. In data, digital, and energy transition, our DDE segment revenue reached $639 million, an increase of 17% compared with the first nine months of 2024, driven by both Geoscience up 13% and Earth Data up 21% year-on-year. In Sensing and Monitoring, revenue totaled $249 million over the same period, representing an 8% increase year-on-year, driven by robust land activity and continuous growth in new businesses. Turning to slide 12, covering profitability, Segment-Adjusted EBITDA reached $417 million over the first nine months of 2025, representing a strong 40% increase year-on-year. This performance was mainly driven by our DDE segment, delivering $100 million of incremental EBITDA year-on-year and achieving a margin close to 64%. This is explained by, on one hand, a higher level of revenue at both Geoscience and Earth Data, which, as you know, have a strong margin conversion. On the other hand, no vessel penalties following the final payment to settle the contract with Shearwater back in January. Regarding Sensing and Monitoring, SMO, it contributed an additional $13 million of EBITDA versus last year, thanks to higher revenues, as well as incremental cost savings from the restructuring plan we have rolled out since January 2024. On the downside, SMO profitability was impacted by the steep depreciation of the U.S. dollar. SMO has indeed a significant portion of its cost base in euros, given the location of its main manufacturing and R&D site. Over Q3 2025 alone this quarter, this was a -$3 million impact compared to last year, which translated into about 100 basis points lower profitability over the first nine months of 2025. Despite those headwinds, SMO adjusted operating income margin reached 5.3% year-to-date, a significant improvement compared with last year when they posted a -3%. Moving to slide 13 for the IFRS figures, the IFRS 15 adjustment continues to be significant this year, reaching -$113 million on revenues and EBITDA over the nine months of 2025 versus +$13 million last year over the same period. These adjustments mainly relate to our ongoing Earth Data surveys in the U.S. Gulf and Norway, which will be mostly completed by H1 2026. As a reminder, in our segment reporting, we continue using the percentage of completion methodology for Earth Data projects, which better reflects our business activity and cash generation of the division, and which IFRS 15 does not allow for. Despite this negative IFRS adjustment and a much lower contribution from discontinued operation compared to 2024, net income for the first nine months of 2025 stood at $19 million, almost in line with last year. Moving on to slide 14, and how this translates into net cash flow. We generated $62 million of cumulated net cash flow over the nine months of 2025, including a strong $53 million in Q3 alone. If we look at the bridge versus the same period in 2024, when we generated $34 million, the picture is quite clear. On the positive side, a much stronger EBITDA contribution, up $123 million year-on-year, and lower CapEx, mainly at Earth Data, contributing most of the additional $28 million of extra cash. These positives were partly offset by two main elements. A $100 million negative impact from working capital, primarily linked to higher Pemex receivable on our balance sheet and lower payables on ongoing EBITDA projects reflecting their phasing. The other line, at -$23 million, is essentially the net effect between the saving achieved since the end of the vessel commitment and the fact that in 2024, we benefited from $38 million of cash flow from the settlement of a long-standing litigation with ONGC. On the Pemex front, we continue to actively pursue options to monetize our exposure, maintaining regular discussions both with Pemex and with several banks on potential factoring solutions. Actually, on a positive note, we were contacted by Pemex this week regarding a partial payment of our receivable. It's still very early to comment in detail, but this could potentially represent more than $20 million of cash for Viridien. We obviously remain very cautious at this stage, as this is a recent exchange with the company, and there is still significant administrative work ahead with uncertain timing. Still, a positive development worth noting. Finally, a few words on our debts, moving on to slide 15. As you know, Viridien remains very active in terms of liability management. First, we continue to maintain active discussions with several financial counterparties, looking for more competitively priced financing solutions. On that front, even if the amount remains modest, it's worth highlighting that in early July, we obtained a $10 million unsecured loan from the French state investment bank Bpifrance at an attractive 4.6% interest rate. The fact that Bpifrance, which used to be a historical partner of the old CGG, is now supporting us again is a clear testimony of the significant progress Viridien has made in strengthening its financial profile. Separately, in early October, we initiated a partial redemption of our outstanding bond using the flexibility provided in our documentation. We got back $25 million and EUR 20 million from the respective tranches, generating annual interest savings of approximately $4.5 million going forward. If you look at the chart on the left-hand side, it shows the evolution of our gross debt over the last 12 months, stated to exclude the adverse effects impact on our euro-denominated bond and to include the October partial redemption. Overall, you see that Viridien has reduced its liability by about $200 million, or roughly 17%, and we intend to continue allocating most of our cash flow towards further debt reduction in the future. With that, I will hand it back over to Sophie. Thank you, Jérôme. We're now on slide 17. In conclusion, our Q3 2025 was a strong quarter for Viridien, marked by robust operational and financial performance. With improved visibility into year-end, we confirm that we will reach our $100 million net cash flow generation in 2025. I reiterate that this target does not include any collection of Pemex receivables, which hopefully is some good news to come in the coming months on that front. Exploration and seismic activity are expected to remain stable, even in a volatile oil price environment, as these services are critical for sustaining production and unlocking new reserves, especially for longer cycle offshore investments. While operators may adjust CapEx spending in response to price fluctuations, reductions are likely to be concentrated in other parts of the value chain, such as drilling or in low carbon. The structural fundamentals of our market segment remain positive. Accelerating field depletion and mounting reserve replacement pressures are driving operators to selectively prioritize resource security over short-term cost savings. This, together with our asset-light strategy, focused on high-end technically differentiated solutions and a disciplined multi-client approach, translates into a continued robust outlook for Viridien. Our clients continue to invest in high-end seismic technologies and multi-client data libraries, which enable them to make better-informed exploration and development decisions. Thank you very much, and I now open the floor to your questions. Thank you so much, dear participants. As a reminder, if you wish to ask a question, please press star one one on your telephone keypad and wait for a name to be announced. To withdraw a question, please press star one one again. Alternatively, you can submit your questions via the webcast. Please stand by while compiled Q&A rolls start. This will take a few moments. Now we're going to take our first question. It comes to the line of Kévin Roger from Kepler Cheuvreux. Your line is open. Please ask your question. Yes, good evening. Thanks for taking the time. I have two mostly, if I may. The first one for you, Sophie, maybe a bit of, in a way, sensitivity or sensibility analysis on Geoscience, because you clearly underlined during the conference call that there are currently some uncertainties regarding oil price, but that you expect your business, thanks to the value addition that you bring to the clients, to remain quite resilient. I was wondering, if we make a scenario of, let's say, a $50 oil price environment for 2026, what will be the top line of Geoscience in terms of magnitude? I know you will not provide the exact number, but just a sense to understand what's the kind of reaction that you expect on Geoscience in a $50 oil price environment. That would be the first question. The second one is maybe more for you, Jérôme. You just mentioned that Pemex contacted you for the payment of a part of the receivable that you have for maybe some $20 million, etc. Considering the movement in net working capital year-to-date, the net number is probably much higher than that. This call that you had last week, does it change anything regarding the strategy that you maybe had in mind months ago regarding factoring with banks, etc., or will you continue to deeply look for the factoring of the receivables from Pemex? That's it for me. Thanks. Yes, thank you and good evening, Kevin. Thanks for that question. We, of course, ask ourselves the question about sensitivity to oil price. As you see, Geoscience doesn't react very quickly to changes in the client spending because of the backlog that carries us through with reasonable visibility. When I think about it, I think about Geoscience being exposed to exploration and production. I did explain that it's not just exploration. It's really development and production, which makes us very resilient. If you think about it, the first order of variation would be linked to exploration and production CapEx variation offshore, which I don't expect, even if the oil price goes down to $50, there will be very big changes in that number. There are ways to counterbalance, and that would be our whole effort, to counterbalance that through the fact that OBN, ocean-bottom nodes, which is mostly used on development and production, requires more intensity in processing. Meaning, if you look at the whole package of acquisition plus processing, the processing bit is more important. The fact that the market's shifting towards OBN is favorable to us because we have a higher market share in that space. Also, in a low oil price environment, our clients are going to look at cutting their internal processing teams, which means we have increasing chances of getting that business. Yes, we'll look at what the E&P CapEx does offshore, but I think there will be other mechanisms for us to compensate for the drop. Maybe another data point for you, Kevin, that we presented during our refinancing to illustrate the resilience of Geoscience is the peak and trough. The highest point was 2019 when we look at the history and the lowest point 2021, and it was at 17%. The difference in oil price was not only $10 between those two dates, as you know. Let's give you a reference point. Regarding your question on Pemex, yes, we are obviously pleased that Pemex hopefully will eventually pay, at least it's a partial payment, what they owe us. Given it's a partial payment, we are still pursuing very actively factoring routes. There's no question we want to get all our money back by exploring all options. What we said is the $100 million target or guidance for this year, we are comfortable to reach it without Pemex. That would be $100 million, even if you do not get anything from Pemex? Correct. That's what we comfortably believe, two reasons versus what we discussed at the last quarterly calls, because we said we needed between $20 million and $25 million. The first is we've been working on other options, as we said at the time. We have divested a small business in the U.S., it's a gauge business, which was lodged under SAFER. The second factor is we anticipate slightly higher revenues than forecasted, which would translate into additional cash for the rest of the period. That means at the end that if, in a scenario that you manage to get the, let's say, roughly $20 million+, you make the factoring from what you have as a receivable. You can clearly be around $150 million, something like that, net cash flow, if you manage to get the $20 million+ the factoring at the end. On paper, you are right. Honestly, the factoring, first, we need to land a deal with one of the banks we are actively discussing with. The second topic is the consent we require from Pemex. As you know, the consent with a state-owned company like Pemex may take some time. I would not anticipate at this stage, at least, the cash to be received this year on the factoring side. Okay. Thanks a lot for that. Thanks. Thank you. Thank you. Now we're going to take our next question.The next question comes live from Cyrille Metzger from Freemont Management. Your line is open. Please ask your question. Yes. Hi. Congratulations on the quarter, and thank you for the presentation. I guess part of my questions have been answered, but previously, I believe you commented on the $100 million net cash flow breach for 2025, factoring in $25 million out of $50 million in Pemex receivable, right? Today, you're confirming this $100 million full-year target regardless of any Pemex receivables. I just wanted to double-check that tweak, and I understood in your answer that that should be correct. Maybe related to that, how much in Pemex receivables remain outstanding as of Q3? What timing are you expecting for the collection? Although I understand it's uncertain, but happy to hear some color here. Thank you. Yes, I do reiterate what I said. We are comfortably reiterating our $100 million cash flow target for the year without Pemex. The position of our receivable with Pemex, we said, was $50 million+ at the end of June. It has slightly increased from projects that were in the pipe since, I think, Q2. Your question was about the factoring, am I correct? I was wondering if you can give us a little bit more color on the timing you're expecting there in Q1. Timing, this one is a bit difficult. Honestly, we just got called by Pemex. We had a meeting in Mexico this week. It's not an easy scheme. Some other players have already some payments, so hopefully it will be this year. With Pemex and this type of state-owned companies, you never know. It will be, again, a partial payment. It will not be the full receivable that I mentioned earlier. Understood. Thank you for the clarity. Thank you. Now we're going to take our next question. It comes to the line of Mick Pickup from Barclays. Your line is open. Please ask your question. Good evening and nice quarter. I think I'll start with I'm not as negative as Kevin. What we've seen this quarter is we've seen heads of exploration at some of the IOCs are moving seats, which suggests that companies are looking more at exploration. My collEAGEues are talking more and more about exploration and discoveries when they're talking to the investor community. I'm just wondering what you're hearing about the medium term from your clients, because it would very much suggest to me that exploration's back on the agenda. Yeah. Hi, Mick. Thanks for the question. Absolutely. There's a lot to speak about exploration. There were, as you know, conferences in London mid-October that highlighted that. We do see much broader, and I did highlight this in Q2 already, much broader interest from clients. They continue to still favor, and they like the infrastructure-led exploration because it's lower risk. They also recognize the need for, in the long term, to position in those new areas. In parallel as well, countries are making it easier for clients to invest. The reality is the speak hasn't completely translated yet into dollars, meaning they're trying to do all these things at sort of a flattish budget. That's perhaps the disconnect that we're in right now. There's a lot of momentum and interest in exploration. It hasn't completely translated into increased budget. One might say it's not been decreasing. It's been flattish. That's what we see moving forward. Eventually, down the road, as clients start taking positions in Africa, in Asia, in South America, the budgets will need to increase because there will be more seismic acquisition. There will be drilling associated with commitments. I think we're in the early stages of that momentum in exploration. Thank you. Thank you. Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star one one on your telephone keypad. Alternatively, you could submit your questions via the webcast. Now we're going to take our next question. The next question comes to the line of Baptiste Lebacq from ODDO BHF. Your line is open. Please ask your question. Yeah. Good evening and congratulations for these good results. Two questions from my side. The first one, related to Jérôme's comments regarding the, let's say, more comfortable regarding the guidance. You mentioned, Jérôme, divestment of small business in the U.S. Can you give us an idea of the size of these disposals in terms of net cash for you? The second one is related to transfer fees. Can you give us an idea of the amount of these transfer fees? Thank you. I will answer the first one. I will not answer the second one. As you know, we never disclose the size of our transfer fees. For the sale of our gauge business called GRC in the U.S., it was slightly above $10 million. Okay. Thank you. The transfer fee, I don't know. I'm sorry. I will not disclose you the— no, it's part of—we consider it part of the business model. It could be up and down depending on the year. This year, it's higher than last year. Somewhat higher. Even if we correct from the transfer fee, the underlying after-sales are still very strong and very good. We're confident and we're happy with the level of after-sales, even correcting from the transfer fee. No more transfer fees on the radar screen for, let's say, coming quarters? There is still M&A activity happening in the North Sea, but it really depends on whether the client takes the footprint and how much they decide to keep. I wouldn't be a very significant number. Perfect. Thanks a lot. Thank you. Dear speakers, there are further audio questions. I would now like to hand the conference over to Alexandre Leroy for any written questions. Thank you. We have a couple of questions from Steve Alder over the internet. Steve asks the follow-up question on the gauge disposal, if it's a Q3 or a Q4 cash inflow. Or said differently, the Q3 figure already figures the $10 million. No, it's a Q4 cash inflow. The second question is that if there might be some other disposal of non-core activities within the Sensing and Monitoring segment going forward. There is a similar business to the one we just did in the U.S., so we have another gauge business here in France, and that's something we will potentially look for to dispose in the future. As a third question, so first, congrats for our liability management. Steve asks if there is any ability to repay the asset-backed debt facility we have in the U.K., and if it's something that is top of the list on our end. Yes. There is an arbitrage to use. We've done already $50 million, as we said, in October of debt buyback. We want to do another $50 million on the back of the $100 million cash flow we believe we can generate by year-end. There is an arbitrage between this $30 million asset-backed facility, which was, as you may know, related to our data center in the U.K. The arbitrage between this debt, $30 million, and again, relieving some bonds. We have some early repayment fees that basically make the difference between the two. We will go for the cheapest option between early repayment and reducing the interest rate of both facilities. No more questions from my end. Operators, do you have any questions over the phone? There are no further questions over the phone. Over to you, Alexandre. Excellent. Please, Sophie. That was it. Thank you very much. Very pleased with the quarter and re-emphasizing the target of $100 million cash flow for the year without the Pemex. We're quite confident we'll be achieving that. Thank you for listening, and I look forward to engaging with you in the coming weeks. Thank you. Thank you. This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.

Speaker 7: Good day, and thank you for standing by. Welcome to the Viridien third quarter 2025 financial results conference call and webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be the question-and-answer session. To ask a question during the session, you need to press star one one on your telephone keypad. You will then hear an automated message advising your hand is raised. To withdraw a question, please press star one and one again. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link anytime during the live event. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Alexandre Leroy. Please go ahead. Good day, and thank you for standing by. good day and thank you for standing by Welcome to the Viridien third quarter 2025 financial results conference call and webcast. welcome to the viridien third quarter 2025 financial results conference call and webcast At this time, all participants are in listen-only mode. at this time all participants are in listen-only mode After the speaker's presentation, there will be the question-and-answer session. after the speaker's presentation there will be the question-and-answer session To ask a question during the session, you need to press star one one on your telephone keypad. to ask a question during the session you need to press star one one on your telephone keypad You will then hear an automated message advising your hand is raised. you will then hear an automated message advising your hand is raised To withdraw a question, please press star one and one again. to withdraw a question please press star one and one again If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link anytime during the live event. if you wish to ask a question via the webcast please use the q&a box available on the webcast link anytime during the live event Please be advised that today's conference is being recorded. please be advised that today's conference is being recorded I would now like to hand the conference over to our first speaker today, Alexandre Leroy. i would now like to hand the conference over to our first speaker today alexandre leroy Please go ahead. please go ahead

Speaker 8: Good morning and good afternoon, everyone. Thank you for joining us today for Viridien's Q3 2025 results presentation. I'm Alexandre Leroy, Head of Investor Relations and Corporate Finance. We are hosting today's call from Paris, and I'm pleased to be joined by Sophie Zurquiyah, our Chair and CEO, and Jérôme Serve, Group CFO, who will walk you through our performance. Before we begin, a few housekeeping items. This call is being recorded and is accessible via both phone and online platforms. An audio replay will be available shortly on our website, www.viridiengroup.com. The presentation slides are also available for download from the website. Please note that today's presentation includes forward-looking statements. Actual results may differ materially from those expressed or implied today. Relevant risk factors are detailed in our 2024 universal registration document filed with the French Financial Markets Authority, AMF. As usual, we'll conclude with a Q&A session. Good morning and good afternoon, everyone. good morning and good afternoon everyone Thank you for joining us today for Viridien's Q3 2025 results presentation. thank you for joining us today for viridien's q3 2025 results presentation I'm Alexandre Leroy, Head of Investor Relations and Corporate Finance. i'm alexandre leroy head of investor relations and corporate finance We are hosting today's call from Paris, and I'm pleased to be joined by Sophie Zurquiyah, our Chair and CEO, and Jérôme Serve, Group CFO, who will walk you through our performance. we are hosting today's call from paris and i'm pleased to be joined by sophie zurquiyah our chair and ceo and jérôme serve group cfo who will walk you through our performance Before we begin, a few housekeeping items. before we begin a few housekeeping items This call is being recorded and is accessible via both phone and online platforms. this call is being recorded and is accessible via both phone and online platforms An audio replay will be available shortly on our website, www.viridiengroup.com. an audio replay will be available shortly on our website www.viridiengroup.com The presentation slides are also available for download from the website. the presentation slides are also available for download from the website Please note that today's presentation includes forward-looking statements. please note that today's presentation includes forward-looking statements Actual results may differ materially from those expressed or implied today. actual results may differ materially from those expressed or implied today Relevant risk factors are detailed in our 2024 universal registration document filed with the French Financial Markets Authority, AMF. relevant risk factors are detailed in our 2024 universal registration document filed with the french financial markets authority amf As usual, we'll conclude with a Q&A session. as usual we'll conclude with a q&a session Finally, a quick reminder that Viridien comments primarily on segment figures which reflect our internal management reporting. These differ from IFRS numbers also published today due to IFRS 15 impacts on our Earth Data Business Accounting. With that, I'll now hand over to management, starting with Sophie, who will take you through the key business highlights for the quarter. Sophie, the floor is yours. Finally, a quick reminder that Viridien comments primarily on segment figures which reflect our internal management reporting. finally a quick reminder that viridien comments primarily on segment figures which reflect our internal management reporting These differ from IFRS numbers also published today due to IFRS 15 impacts on our Earth Data Business Accounting. these differ from ifrs numbers also published today due to ifrs 15 impacts on our earth data business accounting With that, I'll now hand over to management, starting with Sophie, who will take you through the key business highlights for the quarter. with that i'll now hand over to management starting with sophie who will take you through the key business highlights for the quarter Sophie, the floor is yours. sophie the floor is yours

Speaker 2: Thank you, Alexandre. Good morning and good afternoon, ladies and gentlemen. I'm now on slide two. Q3 2025 markets marked another strong quarter, both operationally and financially. Operationally, our Geoscience business continued to deliver robust results, leveraging market-leading technologies that addressed critical industry needs and drive value across both exploration and production. Earth Data late sales were particularly strong, fueled by sustained customer demand for our advanced data sets in mature and strategic frontier basins. This momentum was further supported by transfer fees from recent client M&A transactions. In Sensing and Monitoring, the land segment maintained solid performance, contributing meaningfully to the quarter. Financially, segment revenue reached $313 million, a 27% increase Segment-Adjusted EBITDA rose to $167 million, up 70% year-on-year. Net cash flow generation totaled $53 million for the quarter, bringing the year-to-date figure to $62 million as of September 2025. We remain confident in our outlook. Thank you, Alexandre. thank you alexandre Good morning and good afternoon, ladies and gentlemen. good morning and good afternoon ladies and gentlemen I'm now on slide two. i'm now on slide two Q3 2025 markets marked another strong quarter, both operationally and financially. q3 2025 markets marked another strong quarter both operationally and financially Operationally, our Geoscience business continued to deliver robust results, leveraging market-leading technologies that addressed critical industry needs and drive value across both exploration and production. operationally our geoscience business continued to deliver robust results leveraging market-leading technologies that addressed critical industry needs and drive value across both exploration and production Earth Data late sales were particularly strong, fueled by sustained customer demand for our advanced data sets in mature and strategic frontier basins. earth data late sales were particularly strong fueled by sustained customer demand for our advanced data sets in mature and strategic frontier basins This momentum was further supported by transfer fees from recent client M&A transactions. this momentum was further supported by transfer fees from recent client m&a transactions In Sensing and Monitoring, the land segment maintained solid performance, contributing meaningfully to the quarter. in sensing and monitoring the land segment maintained solid performance contributing meaningfully to the quarter Financially, segment revenue reached $313 million, a 27% increase Segment-Adjusted EBITDA rose to $167 million, up 70% year-on-year. financially segment revenue reached $313 million a 27% increase segment-adjusted ebitda rose to $167 million up 70% year-on-year Net cash flow generation totaled $53 million for the quarter, bringing the year-to-date figure to $62 million as of September 2025. net cash flow generation totaled $53 million for the quarter bringing the year-to-date figure to $62 million as of september 2025 We remain confident in our outlook. we remain confident in our outlook Our asset-light strategy, our focus on high-end technical solutions, and disciplined multi-client approach drive strong performance. Combined with supportive market fundamentals and a solid backlog, we confirm our full-year net cash flow target of $100 million. Let me re-emphasize, this $100 million excludes any potential cashing from overdue receivables from Pemex. Moving on to slide four. Q3 2025 was another solid quarter, with external revenue rising 5% year-on-year to $108 million. Activity remained strong in Geoscience, driven by large ocean-bottom node imaging projects in key mature basins, particularly in offshore fields in Brazil and in the U.S. Gulf, where clients rely on our technology to optimize production. The Middle East also remained active, especially Abu Dhabi, where significant volumes of data were acquired. Our asset-light strategy, our focus on high-end technical solutions, and disciplined multi-client approach drive strong performance. our asset-light strategy our focus on high-end technical solutions and disciplined multi-client approach drive strong performance Combined with supportive market fundamentals and a solid backlog, we confirm our full-year net cash flow target of $100 million. combined with supportive market fundamentals and a solid backlog we confirm our full-year net cash flow target of $100 million Let me re-emphasize, this $100 million excludes any potential cashing from overdue receivables from Pemex. let me re-emphasize this $100 million excludes any potential cashing from overdue receivables from pemex Moving on to slide four. moving on to slide four Q3 2025 was another solid quarter, with external revenue rising 5% year-on-year to $108 million. q3 2025 was another solid quarter with external revenue rising 5% year-on-year to $108 million Activity remained strong in Geoscience, driven by large ocean-bottom node imaging projects in key mature basins, particularly in offshore fields in Brazil and in the U.S. activity remained strong in geoscience driven by large ocean-bottom node imaging projects in key mature basins particularly in offshore fields in brazil and in the u.s Gulf, where clients rely on our technology to optimize production. gulf where clients rely on our technology to optimize production The Middle East also remained active, especially Abu Dhabi, where significant volumes of data were acquired. the middle east also remained active especially abu dhabi where significant volumes of data were acquired Despite a volatile oil price environment, order intake remained robust, underscoring our strategy and sustained industry demand for high-end imaging solutions that enhance exploration success and production efficiency in increasingly complex oil fields. Notably, over 50% of our Geoscience revenue is tied to development and production activity, making this business sensitive to oil price fluctuations compared to more exploration-driven segments. At the end of September, our backlog stood at $290 million, providing strong visibility for sustained activity and cash generation, not only for the remainder of the year but also into the first half of 2026. We remain confident in the resilience of our Geoscience business, supported by a focus on complex offshore projects, long-term partnerships with value-driven clients, including leading IOCs and NOCs, high-end OBN imaging, which plays a pivotal role in development and infrastructure-led exploration. This is an area where we lead the industry. Despite a volatile oil price environment, order intake remained robust, underscoring our strategy and sustained industry demand for high-end imaging solutions that enhance exploration success and production efficiency in increasingly complex oil fields. despite a volatile oil price environment order intake remained robust underscoring our strategy and sustained industry demand for high-end imaging solutions that enhance exploration success and production efficiency in increasingly complex oil fields Notably, over 50% of our Geoscience revenue is tied to development and production activity, making this business sensitive to oil price fluctuations compared to more exploration-driven segments. notably over 50% of our geoscience revenue is tied to development and production activity making this business sensitive to oil price fluctuations compared to more exploration-driven segments At the end of September, our backlog stood at $290 million, providing strong visibility for sustained activity and cash generation, not only for the remainder of the year but also into the first half of 2026. at the end of september our backlog stood at $290 million providing strong visibility for sustained activity and cash generation not only for the remainder of the year but also into the first half of 2026 We remain confident in the resilience of our Geoscience business, supported by a focus on complex offshore projects, long-term partnerships with value-driven clients, including leading IOCs and NOCs, high-end OBN imaging, which plays a pivotal role in development and infrastructure-led exploration. we remain confident in the resilience of our geoscience business supported by a focus on complex offshore projects long-term partnerships with value-driven clients including leading iocs and nocs high-end obn imaging which plays a pivotal role in development and infrastructure-led exploration This is an area where we lead the industry. this is an area where we lead the industry Let's go to slide five. It illustrates a tangible example of how our Geoscience imaging services directly contribute to optimizing field production, even in the most complex reservoirs. The image showcases BP's Atlantis field in the U.S. Gulf, but the same approach applies to other challenging environments, including Brazil, Norway, Angola, and beyond. In this case, we partnered closely with the operator to deliver precise high-end imaging of 4D OBN surveys, that is, repeated ocean-bottom node surveys over time. This enabled a detailed monitoring of fluid movement within the reservoir, allowing the operator to strategically inject fluids to enhance hydrocarbon recovery, optimize overall field performance, and accurately position and drill new wells while minimizing drilling risk. For the operator, this translates into optimized production, improved economics, and a lower carbon footprint across both existing and new infrastructure. Let's go to slide five. let's go to slide five It illustrates a tangible example of how our Geoscience imaging services directly contribute to optimizing field production, even in the most complex reservoirs. it illustrates a tangible example of how our geoscience imaging services directly contribute to optimizing field production even in the most complex reservoirs The image showcases BP's Atlantis field in the U.S. Gulf, but the same approach applies to other challenging environments, including Brazil, Norway, Angola, and beyond. the image showcases bp's atlantis field in the u.s. gulf but the same approach applies to other challenging environments including brazil norway angola and beyond In this case, we partnered closely with the operator to deliver precise high-end imaging of 4D OBN surveys, that is, repeated ocean-bottom node surveys over time. in this case we partnered closely with the operator to deliver precise high-end imaging of 4d obn surveys that is repeated ocean-bottom node surveys over time This enabled a detailed monitoring of fluid movement within the reservoir, allowing the operator to strategically inject fluids to enhance hydrocarbon recovery, optimize overall field performance, and accurately position and drill new wells while minimizing drilling risk. this enabled a detailed monitoring of fluid movement within the reservoir allowing the operator to strategically inject fluids to enhance hydrocarbon recovery optimize overall field performance and accurately position and drill new wells while minimizing drilling risk For the operator, this translates into optimized production, improved economics, and a lower carbon footprint across both existing and new infrastructure. for the operator this translates into optimized production improved economics and a lower carbon footprint across both existing and new infrastructure For Viridien, it means recurring business anchored in production activities, strong exposure to development-led operations, and deep long-term relationships with clients who value our expertise in imaging complex reservoirs offshore, especially through high-end OBN where we lead the industry. Now turning to slide six for the Earth Data Performance Review. In Q3 2025, EDA delivered a very strong performance, with revenues up 63% year-on-year. This growth was driven by two key factors: sustained industry demand for high-quality data, both in mature basins and high-potential frontier areas where we are strategically positioned, and transfer fees stemming from recent client M&A activity within the industry. Excluding transfer fees, which are a standard component of our Earth Data business, after-sales were strong. While the scale of transfer fees can vary year by year, their contribution this quarter was notable. For Viridien, it means recurring business anchored in production activities, strong exposure to development-led operations, and deep long-term relationships with clients who value our expertise in imaging complex reservoirs offshore, especially through high-end OBN where we lead the industry. for viridien it means recurring business anchored in production activities strong exposure to development-led operations and deep long-term relationships with clients who value our expertise in imaging complex reservoirs offshore especially through high-end obn where we lead the industry Now turning to slide six for the Earth Data Performance Review. now turning to slide six for the earth data performance review In Q3 2025, EDA delivered a very strong performance, with revenues up 63% year-on-year. in q3 2025 eda delivered a very strong performance with revenues up 63% year-on-year This growth was driven by two key factors: sustained industry demand for high-quality data, both in mature basins and high-potential frontier areas where we are strategically positioned, and transfer fees stemming from recent client M&A activity within the industry. this growth was driven by two key factors sustained industry demand for high-quality data both in mature basins and high-potential frontier areas where we are strategically positioned and transfer fees stemming from recent client m&a activity within the industry Excluding transfer fees, which are a standard component of our Earth Data business, after-sales were strong. excluding transfer fees which are a standard component of our earth data business after-sales were strong While the scale of transfer fees can vary year by year, their contribution this quarter was notable. while the scale of transfer fees can vary year by year their contribution this quarter was notable Operationally, we made good progress on the Megabar Extension Phase I project in Brazil, reinforcing our presence in this attractive emerging basin. We're actively engaged in discussions for new projects in the U.S. Gulf and Eastern Mediterranean, with the latter showing renewed exploration interest, particularly in Egypt, as highlighted in recent industry headlines. Looking ahead, we remain confident in the long-term value and performance of our multi-client library, underpinned by the quality and relevance of our data sets, the strategic geographical focus, and our disciplined asset-light investment approach. Importantly, E&P companies are reaffirming their commitment to selective exploration, maintaining budgets despite potential short-term macroeconomic headwinds. Several countries are also evolving their regulatory frameworks to attract investment through licensing rounds and other incentives, which should further support multi-client sales momentum. Operationally, we made good progress on the Megabar Extension Phase I project in Brazil, reinforcing our presence in this attractive emerging basin. operationally we made good progress on the megabar extension phase i project in brazil reinforcing our presence in this attractive emerging basin We're actively engaged in discussions for new projects in the U.S. we're actively engaged in discussions for new projects in the u.s Gulf and Eastern Mediterranean, with the latter showing renewed exploration interest, particularly in Egypt, as highlighted in recent industry headlines. gulf and eastern mediterranean with the latter showing renewed exploration interest particularly in egypt as highlighted in recent industry headlines Looking ahead, we remain confident in the long-term value and performance of our multi-client library, underpinned by the quality and relevance of our data sets, the strategic geographical focus, and our disciplined asset-light investment approach. looking ahead we remain confident in the long-term value and performance of our multi-client library underpinned by the quality and relevance of our data sets the strategic geographical focus and our disciplined asset-light investment approach Importantly, E&P companies are reaffirming their commitment to selective exploration, maintaining budgets despite potential short-term macroeconomic headwinds. importantly e&p companies are reaffirming their commitment to selective exploration maintaining budgets despite potential short-term macroeconomic headwinds Several countries are also evolving their regulatory frameworks to attract investment through licensing rounds and other incentives, which should further support multi-client sales momentum. several countries are also evolving their regulatory frameworks to attract investment through licensing rounds and other incentives which should further support multi-client sales momentum As of September 2025, our Earth Data Library net book values stood at $534 million, concentrated in our most active offshore regions, including Norway, Brazil, and the U.S. Gulf. Now on slide seven, I would like to highlight a highly valuable project for our clients, one that is also cash-generative for Viridien. This project is located offshore Uruguay, where we hold the marketing rights for 25,000 sq km of legacy streamer data acquired between 2012 and 2017. Recognizing Uruguay early on as a promising frontier area, we strategically entered the market by leveraging our high-end imaging technologies. The data set was reimaged using our latest innovation, notably our unique TLFWI, resulting in a remarkable improvement in image quality. This led to the identification of multiple high-potential prospects, sparking strong client interest. As of September 2025, our Earth Data Library net book values stood at $534 million, concentrated in our most active offshore regions, including Norway, Brazil, and the U.S. as of september 2025 our earth data library net book values stood at $534 million concentrated in our most active offshore regions including norway brazil and the u.s Gulf. gulf Now on slide seven, I would like to highlight a highly valuable project for our clients, one that is also cash-generative for Viridien. now on slide seven i would like to highlight a highly valuable project for our clients one that is also cash-generative for viridien This project is located offshore Uruguay, where we hold the marketing rights for 25,000 sq km of legacy streamer data acquired between 2012 and 2017. this project is located offshore uruguay where we hold the marketing rights for 25,000 sq km of legacy streamer data acquired between 2012 and 2017 Recognizing Uruguay early on as a promising frontier area, we strategically entered the market by leveraging our high-end imaging technologies. recognizing uruguay early on as a promising frontier area we strategically entered the market by leveraging our high-end imaging technologies The data set was reimaged using our latest innovation, notably our unique TLFWI, resulting in a remarkable improvement in image quality. the data set was reimaged using our latest innovation notably our unique tlfwi resulting in a remarkable improvement in image quality This led to the identification of multiple high-potential prospects, sparking strong client interest. this led to the identification of multiple high-potential prospects sparking strong client interest Projects like this that leverage our imaging leadership typically receive hyper-funding and represent $30 million-$40 million, or 15%-20% of our annual multi-client CapEx. They are very attractive for Viridien because they allow us to unlock new frontier plays with minimal risk and high return, maximize the value of legacy data, and strengthen the relationships with local authorities, a key success factor for long-term engagement and success. This approach not only delivers meaningful value to our clients by enabling better-informed exploration decisions, but also reinforces Viridien's strategic positioning in frontier basins and supports our cash-generation objectives. Now moving on to slide eight, covering Sensing and Monitoring performance. In Q3 2025, SMO revenue grew 16% year-on-year, reaching $69 million. While our marine segment showed improvement compared to last year, momentum remained subdued. Overall growth remains primarily driven by the land segment, which continues to perform strongly. Projects like this that leverage our imaging leadership typically receive hyper-funding and represent $30 million- $40 million, or 15%- 20% of our annual multi-client CapEx. projects like this that leverage our imaging leadership typically receive hyper-funding and represent $30 million- $40 million or 15%- 20% of our annual multi-client capex They are very attractive for Viridien because they allow us to unlock new frontier plays with minimal risk and high return, maximize the value of legacy data, and strengthen the relationships with local authorities, a key success factor for long-term engagement and success. they are very attractive for viridien because they allow us to unlock new frontier plays with minimal risk and high return maximize the value of legacy data and strengthen the relationships with local authorities a key success factor for long-term engagement and success This approach not only delivers meaningful value to our clients by enabling better-informed exploration decisions, but also reinforces Viridien's strategic positioning in frontier basins and supports our cash-generation objectives. this approach not only delivers meaningful value to our clients by enabling better-informed exploration decisions but also reinforces viridien's strategic positioning in frontier basins and supports our cash-generation objectives Now moving on to slide eight, covering Sensing and Monitoring performance. now moving on to slide eight covering sensing and monitoring performance In Q3 2025, SMO revenue grew 16% year-on-year, reaching $69 million. in q3 2025 smo revenue grew 16% year-on-year reaching $69 million While our marine segment showed improvement compared to last year, momentum remained subdued. while our marine segment showed improvement compared to last year momentum remained subdued Overall growth remains primarily driven by the land segment, which continues to perform strongly. overall growth remains primarily driven by the land segment which continues to perform strongly Our land nodal system, WiNG, is gaining traction, with expanding sales across Asia and Latin America, reflecting growing market adoption. In marine, our Tune Pulse source is now deployed across all sparse OBN surveys in the U.S. Gulf. It is increasingly recognized as the reference solution for acquisitions requiring low-frequency signals, essentially for high-end subsurface imaging. Let's focus on land, as shown on slide nine. Activity remains resilient and well-diversified, supported by the healthy mix of flagship high-productivity surveys underway in North America, where we currently have over 80,000 nodes delivering excellent data quality. Multiple medium to small crews are active across South America, the Middle East, and Asia, providing a broad geographical track record and install base. Technology momentum is also encouraging. Our land nodal system, WiNG, is gaining traction, with expanding sales across Asia and Latin America, reflecting growing market adoption. our land nodal system wing is gaining traction with expanding sales across asia and latin america reflecting growing market adoption In marine, our Tune Pulse source is now deployed across all sparse OBN surveys in the U.S. in marine our tune pulse source is now deployed across all sparse obn surveys in the u.s Gulf. gulf It is increasingly recognized as the reference solution for acquisitions requiring low-frequency signals, essentially for high-end subsurface imaging. it is increasingly recognized as the reference solution for acquisitions requiring low-frequency signals essentially for high-end subsurface imaging Let's focus on land, as shown on slide nine. let's focus on land as shown on slide nine Activity remains resilient and well-diversified, supported by the healthy mix of flagship high-productivity surveys underway in North America, where we currently have over 80,000 nodes delivering excellent data quality. activity remains resilient and well-diversified supported by the healthy mix of flagship high-productivity surveys underway in north america where we currently have over 80,000 nodes delivering excellent data quality Multiple medium to small crews are active across South America, the Middle East, and Asia, providing a broad geographical track record and install base. multiple medium to small crews are active across south america the middle east and asia providing a broad geographical track record and install base Technology momentum is also encouraging. technology momentum is also encouraging We're seeing strong industry interest in AXA, our new job-only nodal solution, which was recently showcased at the Image Trade Show in the U.S., following its debut at EAGE in France last June. We expect to see AXA orders strengthening our SMO business in 2026. Under our new businesses initiative, we have also achieved a milestone with the first deployment of one of our mainstream nodes for hydrogen projects, expanding our reach into emerging energy sectors. It's worth noting that even in the absence of mega crews, SMO has demonstrated its resilience thanks to our deep market penetration, optimized operational structure, and strong reputation for quality and customer service. With that, I'll hand over to Jérôme, who will walk you through the financial performance review. We're seeing strong industry interest in AXA, our new job-only nodal solution, which was recently showcased at the Image Trade Show in the U.S., following its debut at EAGE in France last June. we're seeing strong industry interest in axa our new job-only nodal solution which was recently showcased at the image trade show in the u.s following its debut at eage in france last june We expect to see AXA orders strengthening our SMO business in 2026. we expect to see axa orders strengthening our smo business in 2026 Under our new businesses initiative, we have also achieved a milestone with the first deployment of one of our mainstream nodes for hydrogen projects, expanding our reach into emerging energy sectors. under our new businesses initiative we have also achieved a milestone with the first deployment of one of our mainstream nodes for hydrogen projects expanding our reach into emerging energy sectors It's worth noting that even in the absence of mega crews, SMO has demonstrated its resilience thanks to our deep market penetration, optimized operational structure, and strong reputation for quality and customer service. it's worth noting that even in the absence of mega crews smo has demonstrated its resilience thanks to our deep market penetration optimized operational structure and strong reputation for quality and customer service With that, I'll hand over to Jérôme, who will walk you through the financial performance review. with that i'll hand over to jérôme who will walk you through the financial performance review

Speaker 6: Thank you, Sophie. Good morning and good afternoon, everyone. We are now on slide 11, covering group segment revenue. Over the first nine months of 2025, we generated $888 million, up 14% year-on-year. In data, digital, and energy transition, our DDE segment revenue reached $639 million, an increase of 17% compared with the first nine months of 2024, driven by both Geoscience up 13% and Earth Data up 21% year-on-year. In Sensing and Monitoring, revenue totaled $249 million over the same period, representing an 8% increase year-on-year, driven by robust land activity and continuous growth in new businesses. Turning to slide 12, covering profitability, Segment-Adjusted EBITDA reached $417 million over the first nine months of 2025, representing a strong 40% increase year-on-year. This performance was mainly driven by our DDE segment, delivering $100 million of incremental EBITDA year-on-year and achieving a margin close to 64%. Thank you, Sophie. thank you sophie Good morning and good afternoon, everyone. good morning and good afternoon everyone We are now on slide 11, covering group segment revenue. we are now on slide 11 covering group segment revenue Over the first nine months of 2025, we generated $888 million, up 14% year-on-year. over the first nine months of 2025 we generated $888 million up 14% year-on-year In data, digital, and energy transition, our DDE segment revenue reached $639 million, an increase of 17% compared with the first nine months of 2024, driven by both Geoscience up 13% and Earth Data up 21% year-on-year. in data digital and energy transition our dde segment revenue reached $639 million an increase of 17% compared with the first nine months of 2024 driven by both geoscience up 13% and earth data up 21% year-on-year In Sensing and Monitoring, revenue totaled $249 million over the same period, representing an 8% increase year-on-year, driven by robust land activity and continuous growth in new businesses. in sensing and monitoring revenue totaled $249 million over the same period representing an 8% increase year-on-year driven by robust land activity and continuous growth in new businesses Turning to slide 12, covering profitability, Segment-Adjusted EBITDA reached $417 million over the first nine months of 2025, representing a strong 40% increase year-on-year. turning to slide 12 covering profitability segment-adjusted ebitda reached $417 million over the first nine months of 2025 representing a strong 40% increase year-on-year This performance was mainly driven by our DDE segment, delivering $100 million of incremental EBITDA year-on-year and achieving a margin close to 64%. this performance was mainly driven by our dde segment delivering $100 million of incremental ebitda year-on-year and achieving a margin close to 64% This is explained by, on one hand, a higher level of revenue at both Geoscience and Earth Data, which, as you know, have a strong margin conversion. On the other hand, no vessel penalties following the final payment to settle the contract with Shearwater back in January. Regarding Sensing and Monitoring, SMO, it contributed an additional $13 million of EBITDA versus last year, thanks to higher revenues, as well as incremental cost savings from the restructuring plan we have rolled out since January 2024. On the downside, SMO profitability was impacted by the steep depreciation of the U.S. dollar. SMO has indeed a significant portion of its cost base in euros, given the location of its main manufacturing and R&D site. This is explained by, on one hand, a higher level of revenue at both Geoscience and Earth Data, which, as you know, have a strong margin conversion. this is explained by on one hand a higher level of revenue at both geoscience and earth data which as you know have a strong margin conversion On the other hand, no vessel penalties following the final payment to settle the contract with Shearwater back in January. on the other hand no vessel penalties following the final payment to settle the contract with shearwater back in january Regarding Sensing and Monitoring, SMO, it contributed an additional $13 million of EBITDA versus last year, thanks to higher revenues, as well as incremental cost savings from the restructuring plan we have rolled out since January 2024. regarding sensing and monitoring smo it contributed an additional $13 million of ebitda versus last year thanks to higher revenues as well as incremental cost savings from the restructuring plan we have rolled out since january 2024 On the downside, SMO profitability was impacted by the steep depreciation of the U.S. dollar. on the downside smo profitability was impacted by the steep depreciation of the u.s dollar SMO has indeed a significant portion of its cost base in euros, given the location of its main manufacturing and R&D site. smo has indeed a significant portion of its cost base in euros given the location of its main manufacturing and r&d site Over Q3 2025 alone this quarter, this was a -$3 million impact compared to last year, which translated into about 100 basis points lower profitability over the first nine months of 2025. Despite those headwinds, SMO adjusted operating income margin reached 5.3% year-to-date, a significant improvement compared with last year when they posted a -3%. Moving to slide 13 for the IFRS figures, the IFRS 15 adjustment continues to be significant this year, reaching -$113 million on revenues and EBITDA over the nine months of 2025 versus +$13 million last year over the same period. These adjustments mainly relate to our ongoing Earth Data surveys in the U.S. Gulf and Norway, which will be mostly completed by H1 2026. Over Q3 2025 alone this quarter, this was a - $3 million impact compared to last year, which translated into about 100 basis points lower profitability over the first nine months of 2025. over q3 2025 alone this quarter this was a - $3 million impact compared to last year which translated into about 100 basis points lower profitability over the first nine months of 2025 Despite those headwinds, SMO adjusted operating income margin reached 5.3% year-to-date, a significant improvement compared with last year when they posted a - 3%. despite those headwinds smo adjusted operating income margin reached 5.3% year-to-date a significant improvement compared with last year when they posted a - 3% Moving to slide 13 for the IFRS figures, the IFRS 15 adjustment continues to be significant this year, reaching - $113 million on revenues and EBITDA over the nine months of 2025 versus + $13 million last year over the same period. moving to slide 13 for the ifrs figures the ifrs 15 adjustment continues to be significant this year reaching - $113 million on revenues and ebitda over the nine months of 2025 versus + $13 million last year over the same period These adjustments mainly relate to our ongoing Earth Data surveys in the U.S. these adjustments mainly relate to our ongoing earth data surveys in the u.s Gulf and Norway, which will be mostly completed by H1 2026. gulf and norway which will be mostly completed by h1 2026 As a reminder, in our segment reporting, we continue using the percentage of completion methodology for Earth Data projects, which better reflects our business activity and cash generation of the division, and which IFRS 15 does not allow for. Despite this negative IFRS adjustment and a much lower contribution from discontinued operation compared to 2024, net income for the first nine months of 2025 stood at $19 million, almost in line with last year. Moving on to slide 14, and how this translates into net cash flow. We generated $62 million of cumulated net cash flow over the nine months of 2025, including a strong $53 million in Q3 alone. If we look at the bridge versus the same period in 2024, when we generated $34 million, the picture is quite clear. As a reminder, in our segment reporting, we continue using the percentage of completion methodology for Earth Data projects, which better reflects our business activity and cash generation of the division, and which IFRS 15 does not allow for. as a reminder in our segment reporting we continue using the percentage of completion methodology for earth data projects which better reflects our business activity and cash generation of the division and which ifrs 15 does not allow for Despite this negative IFRS adjustment and a much lower contribution from discontinued operation compared to 2024, net income for the first nine months of 2025 stood at $19 million, almost in line with last year. despite this negative ifrs adjustment and a much lower contribution from discontinued operation compared to 2024 net income for the first nine months of 2025 stood at $19 million almost in line with last year Moving on to slide 14, and how this translates into net cash flow. moving on to slide 14 and how this translates into net cash flow We generated $62 million of cumulated net cash flow over the nine months of 2025, including a strong $53 million in Q3 alone. we generated $62 million of cumulated net cash flow over the nine months of 2025 including a strong $53 million in q3 alone If we look at the bridge versus the same period in 2024, when we generated $34 million, the picture is quite clear. if we look at the bridge versus the same period in 2024 when we generated $34 million the picture is quite clear On the positive side, a much stronger EBITDA contribution, up $123 million year-on-year, and lower CapEx, mainly at Earth Data, contributing most of the additional $28 million of extra cash. These positives were partly offset by two main elements. A $100 million negative impact from working capital, primarily linked to higher Pemex receivable on our balance sheet and lower payables on ongoing EBITDA projects reflecting their phasing. The other line, at -$23 million, is essentially the net effect between the saving achieved since the end of the vessel commitment and the fact that in 2024, we benefited from $38 million of cash flow from the settlement of a long-standing litigation with ONGC. On the Pemex front, we continue to actively pursue options to monetize our exposure, maintaining regular discussions both with Pemex and with several banks on potential factoring solutions. On the positive side, a much stronger EBITDA contribution, up $123 million year-on-year, and lower CapEx, mainly at Earth Data, contributing most of the additional $28 million of extra cash. on the positive side a much stronger ebitda contribution up $123 million year-on-year and lower capex mainly at earth data contributing most of the additional $28 million of extra cash These positives were partly offset by two main elements. these positives were partly offset by two main elements A $100 million negative impact from working capital, primarily linked to higher Pemex receivable on our balance sheet and lower payables on ongoing EBITDA projects reflecting their phasing. a $100 million negative impact from working capital primarily linked to higher pemex receivable on our balance sheet and lower payables on ongoing ebitda projects reflecting their phasing The other line, at - $23 million, is essentially the net effect between the saving achieved since the end of the vessel commitment and the fact that in 2024, we benefited from $38 million of cash flow from the settlement of a long-standing litigation with ONGC. the other line at - $23 million is essentially the net effect between the saving achieved since the end of the vessel commitment and the fact that in 2024 we benefited from $38 million of cash flow from the settlement of a long-standing litigation with ongc On the Pemex front, we continue to actively pursue options to monetize our exposure, maintaining regular discussions both with Pemex and with several banks on potential factoring solutions. on the pemex front we continue to actively pursue options to monetize our exposure maintaining regular discussions both with pemex and with several banks on potential factoring solutions Actually, on a positive note, we were contacted by Pemex this week regarding a partial payment of our receivable. It's still very early to comment in detail, but this could potentially represent more than $20 million of cash for Viridien. We obviously remain very cautious at this stage, as this is a recent exchange with the company, and there is still significant administrative work ahead with uncertain timing. Still, a positive development worth noting. Finally, a few words on our debts, moving on to slide 15. As you know, Viridien remains very active in terms of liability management. First, we continue to maintain active discussions with several financial counterparties, looking for more competitively priced financing solutions. Actually, on a positive note, we were contacted by Pemex this week regarding a partial payment of our receivable. actually on a positive note we were contacted by pemex this week regarding a partial payment of our receivable It's still very early to comment in detail, but this could potentially represent more than $20 million of cash for Viridien. it's still very early to comment in detail but this could potentially represent more than $20 million of cash for viridien We obviously remain very cautious at this stage, as this is a recent exchange with the company, and there is still significant administrative work ahead with uncertain timing. we obviously remain very cautious at this stage as this is a recent exchange with the company and there is still significant administrative work ahead with uncertain timing Still, a positive development worth noting. still a positive development worth noting Finally, a few words on our debts, moving on to slide 15. finally a few words on our debts moving on to slide 15 As you know, Viridien remains very active in terms of liability management. as you know viridien remains very active in terms of liability management First, we continue to maintain active discussions with several financial counterparties, looking for more competitively priced financing solutions. first we continue to maintain active discussions with several financial counterparties looking for more competitively priced financing solutions On that front, even if the amount remains modest, it's worth highlighting that in early July, we obtained a $10 million unsecured loan from the French state investment bank Bpifrance at an attractive 4.6% interest rate. The fact that Bpifrance, which used to be a historical partner of the old CGG, is now supporting us again is a clear testimony of the significant progress Viridien has made in strengthening its financial profile. Separately, in early October, we initiated a partial redemption of our outstanding bond using the flexibility provided in our documentation. We got back $25 million and EUR 20 million from the respective tranches, generating annual interest savings of approximately $4.5 million going forward. On that front, even if the amount remains modest, it's worth highlighting that in early July, we obtained a $10 million unsecured loan from the French state investment bank Bpifrance at an attractive 4.6% interest rate. on that front even if the amount remains modest it's worth highlighting that in early july we obtained a $10 million unsecured loan from the french state investment bank bpifrance at an attractive 4.6% interest rate The fact that Bpifrance, which used to be a historical partner of the old CGG, is now supporting us again is a clear testimony of the significant progress Viridien has made in strengthening its financial profile. the fact that bpifrance which used to be a historical partner of the old cgg is now supporting us again is a clear testimony of the significant progress viridien has made in strengthening its financial profile Separately, in early October, we initiated a partial redemption of our outstanding bond using the flexibility provided in our documentation. separately in early october we initiated a partial redemption of our outstanding bond using the flexibility provided in our documentation We got back $25 million and EUR 20 million from the respective tranches, generating annual interest savings of approximately $4.5 million going forward. we got back $25 million and eur 20 million from the respective tranches generating annual interest savings of approximately $4.5 million going forward If you look at the chart on the left-hand side, it shows the evolution of our gross debt over the last 12 months, stated to exclude the adverse effects impact on our euro-denominated bond and to include the October partial redemption. Overall, you see that Viridien has reduced its liability by about $200 million, or roughly 17%, and we intend to continue allocating most of our cash flow towards further debt reduction in the future. With that, I will hand it back over to Sophie. If you look at the chart on the left-hand side, it shows the evolution of our gross debt over the last 12 months, stated to exclude the adverse effects impact on our euro-denominated bond and to include the October partial redemption. if you look at the chart on the left-hand side it shows the evolution of our gross debt over the last 12 months stated to exclude the adverse effects impact on our euro-denominated bond and to include the october partial redemption Overall, you see that Viridien has reduced its liability by about $200 million, or roughly 17%, and we intend to continue allocating most of our cash flow towards further debt reduction in the future. overall you see that viridien has reduced its liability by about $200 million or roughly 17% and we intend to continue allocating most of our cash flow towards further debt reduction in the future With that, I will hand it back over to Sophie. with that i will hand it back over to sophie

Speaker 2: Thank you, Jérôme. We're now on slide 17. In conclusion, our Q3 2025 was a strong quarter for Viridien, marked by robust operational and financial performance. With improved visibility into year-end, we confirm that we will reach our $100 million net cash flow generation in 2025. Thank you, Jérôme. thank you jérôme We're now on slide 17. we're now on slide 17 In conclusion, our Q3 2025 was a strong quarter for Viridien, marked by robust operational and financial performance. in conclusion our q3 2025 was a strong quarter for viridien marked by robust operational and financial performance With improved visibility into year-end, we confirm that we will reach our $100 million net cash flow generation in 2025. with improved visibility into year-end we confirm that we will reach our $100 million net cash flow generation in 2025 I reiterate that this target does not include any collection of Pemex receivables, which hopefully is some good news to come in the coming months on that front. Exploration and seismic activity are expected to remain stable, even in a volatile oil price environment, as these services are critical for sustaining production and unlocking new reserves, especially for longer cycle offshore investments. While operators may adjust CapEx spending in response to price fluctuations, reductions are likely to be concentrated in other parts of the value chain, such as drilling or in low carbon. The structural fundamentals of our market segment remain positive. Accelerating field depletion and mounting reserve replacement pressures are driving operators to selectively prioritize resource security over short-term cost savings. This, together with our asset-light strategy, focused on high-end technically differentiated solutions and a disciplined multi-client approach, translates into a continued robust outlook for Viridien. I reiterate that this target does not include any collection of Pemex receivables, which hopefully is some good news to come in the coming months on that front. i reiterate that this target does not include any collection of pemex receivables which hopefully is some good news to come in the coming months on that front Exploration and seismic activity are expected to remain stable, even in a volatile oil price environment, as these services are critical for sustaining production and unlocking new reserves, especially for longer cycle offshore investments. exploration and seismic activity are expected to remain stable even in a volatile oil price environment as these services are critical for sustaining production and unlocking new reserves especially for longer cycle offshore investments While operators may adjust CapEx spending in response to price fluctuations, reductions are likely to be concentrated in other parts of the value chain, such as drilling or in low carbon. while operators may adjust capex spending in response to price fluctuations reductions are likely to be concentrated in other parts of the value chain such as drilling or in low carbon The structural fundamentals of our market segment remain positive. the structural fundamentals of our market segment remain positive Accelerating field depletion and mounting reserve replacement pressures are driving operators to selectively prioritize resource security over short-term cost savings. accelerating field depletion and mounting reserve replacement pressures are driving operators to selectively prioritize resource security over short-term cost savings This, together with our asset-light strategy, focused on high-end technically differentiated solutions and a disciplined multi-client approach, translates into a continued robust outlook for Viridien. this together with our asset-light strategy focused on high-end technically differentiated solutions and a disciplined multi-client approach translates into a continued robust outlook for viridien Our clients continue to invest in high-end seismic technologies and multi-client data libraries, which enable them to make better-informed exploration and development decisions. Thank you very much, and I now open the floor to your questions. Our clients continue to invest in high-end seismic technologies and multi-client data libraries, which enable them to make better-informed exploration and development decisions. our clients continue to invest in high-end seismic technologies and multi-client data libraries which enable them to make better-informed exploration and development decisions Thank you very much, and I now open the floor to your questions. thank you very much and i now open the floor to your questions

Speaker 7: Thank you so much, dear participants. As a reminder, if you wish to ask a question, please press star one one on your telephone keypad and wait for a name to be announced. To withdraw a question, please press star one one again. Alternatively, you can submit your questions via the webcast. Please stand by while compiled Q&A rolls start. This will take a few moments. Now we're going to take our first question. It comes to the line of Kévin Roger from Kepler Cheuvreux. Your line is open. Please ask your question. Thank you so much, dear participants. thank you so much dear participants As a reminder, if you wish to ask a question, please press star one one on your telephone keypad and wait for a name to be announced. as a reminder if you wish to ask a question please press star one one on your telephone keypad and wait for a name to be announced To withdraw a question, please press star one one again. to withdraw a question please press star one one again Alternatively, you can submit your questions via the webcast. alternatively you can submit your questions via the webcast Please stand by while compiled Q&A rolls start. please stand by while compiled q&a rolls start This will take a few moments. this will take a few moments Now we're going to take our first question. now we're going to take our first question It comes to the line of Kévin Roger from Kepler Cheuvreux. it comes to the line of kévin roger from kepler cheuvreux Your line is open. your line is open Please ask your question. please ask your question

Speaker 3: Yes, good evening. Thanks for taking the time. I have two mostly, if I may. The first one for you, Sophie, maybe a bit of, in a way, sensitivity or sensibility analysis on Geoscience, because you clearly underlined during the conference call that there are currently some uncertainties regarding oil price, but that you expect your business, thanks to the value addition that you bring to the clients, to remain quite resilient. I was wondering, if we make a scenario of, let's say, a $50 oil price environment for 2026, what will be the top line of Geoscience in terms of magnitude? I know you will not provide the exact number, but just a sense to understand what's the kind of reaction that you expect on Geoscience in a $50 oil price environment. That would be the first question. The second one is maybe more for you, Jérôme. Yes, good evening. yes good evening Thanks for taking the time. thanks for taking the time I have two mostly, if I may. i have two mostly if i may The first one for you, Sophie, maybe a bit of, in a way, sensitivity or sensibility analysis on Geoscience, because you clearly underlined during the conference call that there are currently some uncertainties regarding oil price, but that you expect your business, thanks to the value addition that you bring to the clients, to remain quite resilient. the first one for you sophie maybe a bit of in a way sensitivity or sensibility analysis on geoscience because you clearly underlined during the conference call that there are currently some uncertainties regarding oil price but that you expect your business thanks to the value addition that you bring to the clients to remain quite resilient I was wondering, if we make a scenario of, let's say, a $50 oil price environment for 2026, what will be the top line of Geoscience in terms of magnitude? i was wondering if we make a scenario of let's say a $50 oil price environment for 2026 what will be the top line of geoscience in terms of magnitude I know you will not provide the exact number, but just a sense to understand what's the kind of reaction that you expect on Geoscience in a $50 oil price environment. i know you will not provide the exact number but just a sense to understand what's the kind of reaction that you expect on geoscience in a $50 oil price environment That would be the first question. that would be the first question The second one is maybe more for you, Jérôme. the second one is maybe more for you jérôme You just mentioned that Pemex contacted you for the payment of a part of the receivable that you have for maybe some $20 million, etc. Considering the movement in net working capital year-to-date, the net number is probably much higher than that. This call that you had last week, does it change anything regarding the strategy that you maybe had in mind months ago regarding factoring with banks, etc., or will you continue to deeply look for the factoring of the receivables from Pemex? That's it for me. Thanks. You just mentioned that Pemex contacted you for the payment of a part of the receivable that you have for maybe some $20 million, etc. Considering the movement in net working capital year-to-date, the net number is probably much higher than that. you just mentioned that pemex contacted you for the payment of a part of the receivable that you have for maybe some $20 million etc considering the movement in net working capital year-to-date the net number is probably much higher than that This call that you had last week, does it change anything regarding the strategy that you maybe had in mind months ago regarding factoring with banks, etc., or will you continue to deeply look for the factoring of the receivables from Pemex? this call that you had last week does it change anything regarding the strategy that you maybe had in mind months ago regarding factoring with banks etc or will you continue to deeply look for the factoring of the receivables from pemex That's it for me. that's it for me Thanks. thanks

Speaker 2: Yes, thank you and good evening, Kevin. Thanks for that question. We, of course, ask ourselves the question about sensitivity to oil price. As you see, Geoscience doesn't react very quickly to changes in the client spending because of the backlog that carries us through with reasonable visibility. Yes, thank you and good evening, Kevin. yes thank you and good evening kevin Thanks for that question. thanks for that question We, of course, ask ourselves the question about sensitivity to oil price. we of course ask ourselves the question about sensitivity to oil price As you see, Geoscience doesn't react very quickly to changes in the client spending because of the backlog that carries us through with reasonable visibility. as you see geoscience doesn't react very quickly to changes in the client spending because of the backlog that carries us through with reasonable visibility When I think about it, I think about Geoscience being exposed to exploration and production. I did explain that it's not just exploration. It's really development and production, which makes us very resilient. If you think about it, the first order of variation would be linked to exploration and production CapEx variation offshore, which I don't expect, even if the oil price goes down to $50, there will be very big changes in that number. There are ways to counterbalance, and that would be our whole effort, to counterbalance that through the fact that OBN, ocean-bottom nodes, which is mostly used on development and production, requires more intensity in processing. Meaning, if you look at the whole package of acquisition plus processing, the processing bit is more important. The fact that the market's shifting towards OBN is favorable to us because we have a higher market share in that space. When I think about it, I think about Geoscience being exposed to exploration and production. when i think about it i think about geoscience being exposed to exploration and production I did explain that it's not just exploration. i did explain that it's not just exploration It's really development and production, which makes us very resilient. it's really development and production which makes us very resilient If you think about it, the first order of variation would be linked to exploration and production CapEx variation offshore, which I don't expect, even if the oil price goes down to $50, there will be very big changes in that number. if you think about it the first order of variation would be linked to exploration and production capex variation offshore which i don't expect even if the oil price goes down to $50 there will be very big changes in that number There are ways to counterbalance, and that would be our whole effort, to counterbalance that through the fact that OBN, ocean-bottom nodes, which is mostly used on development and production, requires more intensity in processing. there are ways to counterbalance and that would be our whole effort to counterbalance that through the fact that obn ocean-bottom nodes which is mostly used on development and production requires more intensity in processing Meaning, if you look at the whole package of acquisition plus processing, the processing bit is more important. meaning if you look at the whole package of acquisition plus processing the processing bit is more important The fact that the market's shifting towards OBN is favorable to us because we have a higher market share in that space. the fact that the market's shifting towards obn is favorable to us because we have a higher market share in that space Also, in a low oil price environment, our clients are going to look at cutting their internal processing teams, which means we have increasing chances of getting that business. Yes, we'll look at what the E&P CapEx does offshore, but I think there will be other mechanisms for us to compensate for the drop. Also, in a low oil price environment, our clients are going to look at cutting their internal processing teams, which means we have increasing chances of getting that business. also in a low oil price environment our clients are going to look at cutting their internal processing teams which means we have increasing chances of getting that business Yes, we'll look at what the E&P CapEx does offshore, but I think there will be other mechanisms for us to compensate for the drop. yes we'll look at what the e&p capex does offshore but i think there will be other mechanisms for us to compensate for the drop

Speaker 6: Maybe another data point for you, Kevin, that we presented during our refinancing to illustrate the resilience of Geoscience is the peak and trough. The highest point was 2019 when we look at the history and the lowest point 2021, and it was at 17%. The difference in oil price was not only $10 between those two dates, as you know. Let's give you a reference point. Regarding your question on Pemex, yes, we are obviously pleased that Pemex hopefully will eventually pay, at least it's a partial payment, what they owe us. Given it's a partial payment, we are still pursuing very actively factoring routes. There's no question we want to get all our money back by exploring all options. What we said is the $100 million target or guidance for this year, we are comfortable to reach it without Pemex. Maybe another data point for you, Kevin, that we presented during our refinancing to illustrate the resilience of Geoscience is the peak and trough. maybe another data point for you kevin that we presented during our refinancing to illustrate the resilience of geoscience is the peak and trough The highest point was 2019 when we look at the history and the lowest point 2021, and it was at 17%. the highest point was 2019 when we look at the history and the lowest point 2021 and it was at 17% The difference in oil price was not only $10 between those two dates, as you know. the difference in oil price was not only $10 between those two dates as you know Let's give you a reference point. let's give you a reference point Regarding your question on Pemex, yes, we are obviously pleased that Pemex hopefully will eventually pay, at least it's a partial payment, what they owe us. regarding your question on pemex yes we are obviously pleased that pemex hopefully will eventually pay at least it's a partial payment what they owe us Given it's a partial payment, we are still pursuing very actively factoring routes. given it's a partial payment we are still pursuing very actively factoring routes There's no question we want to get all our money back by exploring all options. there's no question we want to get all our money back by exploring all options What we said is the $100 million target or guidance for this year, we are comfortable to reach it without Pemex. what we said is the $100 million target or guidance for this year we are comfortable to reach it without pemex

Speaker 3: That would be $100 million, even if you do not get anything from Pemex? That would be $100 million, even if you do not get anything from Pemex? that would be $100 million even if you do not get anything from pemex

Speaker 6: Correct. That's what we comfortably believe, two reasons versus what we discussed at the last quarterly calls, because we said we needed between $20 million and $25 million. The first is we've been working on other options, as we said at the time. We have divested a small business in the U.S., it's a gauge business, which was lodged under SAFER. The second factor is we anticipate slightly higher revenues than forecasted, which would translate into additional cash for the rest of the period. Correct. correct That's what we comfortably believe, two reasons versus what we discussed at the last quarterly calls, because we said we needed between $20 million and $25 million. that's what we comfortably believe two reasons versus what we discussed at the last quarterly calls because we said we needed between $20 million and $25 million The first is we've been working on other options, as we said at the time. the first is we've been working on other options as we said at the time We have divested a small business in the U.S., it's a gauge business, which was lodged under SAFER. we have divested a small business in the u.s it's a gauge business which was lodged under safer The second factor is we anticipate slightly higher revenues than forecasted, which would translate into additional cash for the rest of the period. the second factor is we anticipate slightly higher revenues than forecasted which would translate into additional cash for the rest of the period

Speaker 3: That means at the end that if, in a scenario that you manage to get the, let's say, roughly $20 million+, you make the factoring from what you have as a receivable. You can clearly be around $150 million, something like that, net cash flow, if you manage to get the $20 million+ the factoring at the end. That means at the end that if, in a scenario that you manage to get the, let's say, roughly $20 million+ , you make the factoring from what you have as a receivable. that means at the end that if in a scenario that you manage to get the let's say roughly $20 million+ you make the factoring from what you have as a receivable You can clearly be around $150 million, something like that, net cash flow, if you manage to get the $20 million+ the factoring at the end. you can clearly be around $150 million something like that net cash flow if you manage to get the $20 million+ the factoring at the end

Speaker 6: On paper, you are right. Honestly, the factoring, first, we need to land a deal with one of the banks we are actively discussing with. The second topic is the consent we require from Pemex. As you know, the consent with a state-owned company like Pemex may take some time. I would not anticipate at this stage, at least, the cash to be received this year on the factoring side. On paper, you are right. on paper you are right Honestly, the factoring, first, we need to land a deal with one of the banks we are actively discussing with. honestly the factoring first we need to land a deal with one of the banks we are actively discussing with The second topic is the consent we require from Pemex. the second topic is the consent we require from pemex As you know, the consent with a state-owned company like Pemex may take some time. as you know the consent with a state-owned company like pemex may take some time I would not anticipate at this stage, at least, the cash to be received this year on the factoring side. i would not anticipate at this stage at least the cash to be received this year on the factoring side

Speaker 3: Okay. Thanks a lot for that. Thanks. Okay. okay Thanks a lot for that. thanks a lot for that Thanks. thanks

Speaker 2: Thank you. Thank you. thank you

Speaker 7: Thank you. Now we're going to take our next question.The next question comes live from Cyrille Metzger from Freemont Management. Your line is open. Please ask your question. Thank you. thank you Now we're going to take our next question. now we're going to take our next question The next question comes live from Cyrille Metzger from Freemont Management. the next question comes live from cyrille metzger from freemont management Your line is open. your line is open Please ask your question. please ask your question

Speaker 5: Yes. Hi. Congratulations on the quarter, and thank you for the presentation. I guess part of my questions have been answered, but previously, I believe you commented on the $100 million net cash flow breach for 2025, factoring in $25 million out of $50 million in Pemex receivable, right? Today, you're confirming this $100 million full-year target regardless of any Pemex receivables. I just wanted to double-check that tweak, and I understood in your answer that that should be correct. Maybe related to that, how much in Pemex receivables remain outstanding as of Q3? What timing are you expecting for the collection? Although I understand it's uncertain, but happy to hear some color here. Thank you. Yes. yes Hi. hi Congratulations on the quarter, and thank you for the presentation. congratulations on the quarter and thank you for the presentation I guess part of my questions have been answered, but previously, I believe you commented on the $100 million net cash flow breach for 2025, factoring in $25 million out of $50 million in Pemex receivable, right? i guess part of my questions have been answered but previously i believe you commented on the $100 million net cash flow breach for 2025 factoring in $25 million out of $50 million in pemex receivable right Today, you're confirming this $100 million full-year target regardless of any Pemex receivables. today you're confirming this $100 million full-year target regardless of any pemex receivables I just wanted to double-check that tweak, and I understood in your answer that that should be correct. i just wanted to double-check that tweak and i understood in your answer that that should be correct Maybe related to that, how much in Pemex receivables remain outstanding as of Q3? maybe related to that how much in pemex receivables remain outstanding as of q3 What timing are you expecting for the collection? what timing are you expecting for the collection Although I understand it's uncertain, but happy to hear some color here. although i understand it's uncertain but happy to hear some color here Thank you. thank you

Speaker 6: Yes, I do reiterate what I said. We are comfortably reiterating our $100 million cash flow target for the year without Pemex. The position of our receivable with Pemex, we said, was $50 million+ at the end of June. It has slightly increased from projects that were in the pipe since, I think, Q2. Your question was about the factoring, am I correct? Yes, I do reiterate what I said. yes i do reiterate what i said We are comfortably reiterating our $100 million cash flow target for the year without Pemex. we are comfortably reiterating our $100 million cash flow target for the year without pemex The position of our receivable with Pemex, we said, was $50 million+ at the end of June. the position of our receivable with pemex we said was $50 million+ at the end of june It has slightly increased from projects that were in the pipe since, I think, Q2. it has slightly increased from projects that were in the pipe since i think q2 Your question was about the factoring, am I correct? your question was about the factoring am i correct

Speaker 5: I was wondering if you can give us a little bit more color on the timing you're expecting there in Q1. I was wondering if you can give us a little bit more color on the timing you're expecting there in Q1. i was wondering if you can give us a little bit more color on the timing you're expecting there in q1

Speaker 6: Timing, this one is a bit difficult. Honestly, we just got called by Pemex. We had a meeting in Mexico this week. It's not an easy scheme. Some other players have already some payments, so hopefully it will be this year. With Pemex and this type of state-owned companies, you never know. It will be, again, a partial payment. It will not be the full receivable that I mentioned earlier. Timing, this one is a bit difficult. timing this one is a bit difficult Honestly, we just got called by Pemex. honestly we just got called by pemex We had a meeting in Mexico this week. we had a meeting in mexico this week It's not an easy scheme. it's not an easy scheme Some other players have already some payments, so hopefully it will be this year. some other players have already some payments so hopefully it will be this year With Pemex and this type of state-owned companies, you never know. with pemex and this type of state-owned companies you never know It will be, again, a partial payment. it will be again a partial payment It will not be the full receivable that I mentioned earlier. it will not be the full receivable that i mentioned earlier

Speaker 5: Understood. Thank you for the clarity. Understood. understood Thank you for the clarity. thank you for the clarity

Speaker 7: Thank you. Now we're going to take our next question. It comes to the line of Mick Pickup from Barclays. Your line is open. Please ask your question. Thank you. thank you Now we're going to take our next question. now we're going to take our next question It comes to the line of Mick Pickup from Barclays. it comes to the line of mick pickup from barclays Your line is open. your line is open Please ask your question. please ask your question

Speaker 4: Good evening and nice quarter. I think I'll start with I'm not as negative as Kevin. What we've seen this quarter is we've seen heads of exploration at some of the IOCs are moving seats, which suggests that companies are looking more at exploration. My collEAGEues are talking more and more about exploration and discoveries when they're talking to the investor community. I'm just wondering what you're hearing about the medium term from your clients, because it would very much suggest to me that exploration's back on the agenda. Good evening and nice quarter. good evening and nice quarter I think I'll start with I'm not as negative as Kevin. i think i'll start with i'm not as negative as kevin What we've seen this quarter is we've seen heads of exploration at some of the IOCs are moving seats, which suggests that companies are looking more at exploration. what we've seen this quarter is we've seen heads of exploration at some of the iocs are moving seats which suggests that companies are looking more at exploration My collEAGEues are talking more and more about exploration and discoveries when they're talking to the investor community. my colleageues are talking more and more about exploration and discoveries when they're talking to the investor community I'm just wondering what you're hearing about the medium term from your clients, because it would very much suggest to me that exploration's back on the agenda. i'm just wondering what you're hearing about the medium term from your clients because it would very much suggest to me that exploration's back on the agenda

Speaker 2: Yeah. Hi, Mick. Thanks for the question. Absolutely. There's a lot to speak about exploration. There were, as you know, conferences in London mid-October that highlighted that. Yeah. yeah Hi, Mick. hi mick Thanks for the question. thanks for the question Absolutely. absolutely There's a lot to speak about exploration. there's a lot to speak about exploration There were, as you know, conferences in London mid-October that highlighted that. there were as you know conferences in london mid-october that highlighted that We do see much broader, and I did highlight this in Q2 already, much broader interest from clients. They continue to still favor, and they like the infrastructure-led exploration because it's lower risk. They also recognize the need for, in the long term, to position in those new areas. In parallel as well, countries are making it easier for clients to invest. The reality is the speak hasn't completely translated yet into dollars, meaning they're trying to do all these things at sort of a flattish budget. That's perhaps the disconnect that we're in right now. There's a lot of momentum and interest in exploration. It hasn't completely translated into increased budget. One might say it's not been decreasing. It's been flattish. That's what we see moving forward. We do see much broader, and I did highlight this in Q2 already, much broader interest from clients. we do see much broader and i did highlight this in q2 already much broader interest from clients They continue to still favor, and they like the infrastructure-led exploration because it's lower risk. they continue to still favor and they like the infrastructure-led exploration because it's lower risk They also recognize the need for, in the long term, to position in those new areas. they also recognize the need for in the long term to position in those new areas In parallel as well, countries are making it easier for clients to invest. in parallel as well countries are making it easier for clients to invest The reality is the speak hasn't completely translated yet into dollars, meaning they're trying to do all these things at sort of a flattish budget. the reality is the speak hasn't completely translated yet into dollars meaning they're trying to do all these things at sort of a flattish budget That's perhaps the disconnect that we're in right now. that's perhaps the disconnect that we're in right now There's a lot of momentum and interest in exploration. there's a lot of momentum and interest in exploration It hasn't completely translated into increased budget. it hasn't completely translated into increased budget One might say it's not been decreasing. one might say it's not been decreasing It's been flattish. it's been flattish That's what we see moving forward. that's what we see moving forward Eventually, down the road, as clients start taking positions in Africa, in Asia, in South America, the budgets will need to increase because there will be more seismic acquisition. There will be drilling associated with commitments. I think we're in the early stages of that momentum in exploration. Eventually, down the road, as clients start taking positions in Africa, in Asia, in South America, the budgets will need to increase because there will be more seismic acquisition. eventually down the road as clients start taking positions in africa in asia in south america the budgets will need to increase because there will be more seismic acquisition There will be drilling associated with commitments. there will be drilling associated with commitments I think we're in the early stages of that momentum in exploration. i think we're in the early stages of that momentum in exploration

Speaker 4: Thank you. Thank you. thank you

Speaker 2: Thank you. Thank you. thank you

Speaker 7: Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star one one on your telephone keypad. Alternatively, you could submit your questions via the webcast. Now we're going to take our next question. The next question comes to the line of Baptiste Lebacq from ODDO BHF. Your line is open. Please ask your question. Thank you. thank you Dear participants, as a reminder, if you wish to ask a question, please press star one one on your telephone keypad. dear participants as a reminder if you wish to ask a question please press star one one on your telephone keypad Alternatively, you could submit your questions via the webcast. alternatively you could submit your questions via the webcast Now we're going to take our next question. now we're going to take our next question The next question comes to the line of Baptiste Lebacq from ODDO BHF. the next question comes to the line of baptiste lebacq from oddo bhf Your line is open. your line is open Please ask your question. please ask your question

Speaker 1: Yeah. Good evening and congratulations for these good results. Two questions from my side. The first one, related to Jérôme's comments regarding the, let's say, more comfortable regarding the guidance. You mentioned, Jérôme, divestment of small business in the U.S. Can you give us an idea of the size of these disposals in terms of net cash for you? The second one is related to transfer fees. Can you give us an idea of the amount of these transfer fees? Thank you. Yeah. yeah Good evening and congratulations for these good results. good evening and congratulations for these good results Two questions from my side. two questions from my side The first one, related to Jérôme's comments regarding the, let's say, more comfortable regarding the guidance. the first one related to jérôme's comments regarding the let's say more comfortable regarding the guidance You mentioned, Jérôme, divestment of small business in the U.S. you mentioned jérôme divestment of small business in the u.s Can you give us an idea of the size of these disposals in terms of net cash for you? can you give us an idea of the size of these disposals in terms of net cash for you The second one is related to transfer fees. the second one is related to transfer fees Can you give us an idea of the amount of these transfer fees? can you give us an idea of the amount of these transfer fees Thank you. thank you

Speaker 6: I will answer the first one. I will not answer the second one. As you know, we never disclose the size of our transfer fees. For the sale of our gauge business called GRC in the U.S., it was slightly above $10 million. I will answer the first one. i will answer the first one I will not answer the second one. i will not answer the second one As you know, we never disclose the size of our transfer fees. as you know we never disclose the size of our transfer fees For the sale of our gauge business called GRC in the U.S., it was slightly above $10 million. for the sale of our gauge business called grc in the u.s it was slightly above $10 million

Speaker 1: Okay. Thank you. The transfer fee, I don't know. Okay. okay Thank you. thank you The transfer fee, I don't know. the transfer fee i don't know

Speaker 6: I'm sorry. I will not disclose you the— I'm sorry. i'm sorry I will not disclose you the— i will not disclose you the—

Speaker 2: no, it's part of—we consider it part of the business model. It could be up and down depending on the year. This year, it's higher than last year. Somewhat higher. Even if we correct from the transfer fee, the underlying after-sales are still very strong and very good. We're confident and we're happy with the level of after-sales, even correcting from the transfer fee. no, it's part of—we consider it part of the business model. no it's part of—we consider it part of the business model It could be up and down depending on the year. it could be up and down depending on the year This year, it's higher than last year. this year it's higher than last year Somewhat higher. somewhat higher Even if we correct from the transfer fee, the underlying after-sales are still very strong and very good. even if we correct from the transfer fee the underlying after-sales are still very strong and very good We're confident and we're happy with the level of after-sales, even correcting from the transfer fee. we're confident and we're happy with the level of after-sales even correcting from the transfer fee

Speaker 1: No more transfer fees on the radar screen for, let's say, coming quarters? No more transfer fees on the radar screen for, let's say, coming quarters? no more transfer fees on the radar screen for let's say coming quarters

Speaker 2: There is still M&A activity happening in the North Sea, but it really depends on whether the client takes the footprint and how much they decide to keep. I wouldn't be a very significant number. There is still M&A activity happening in the North Sea, but it really depends on whether the client takes the footprint and how much they decide to keep. there is still m&a activity happening in the north sea but it really depends on whether the client takes the footprint and how much they decide to keep I wouldn't be a very significant number. i wouldn't be a very significant number

Speaker 1: Perfect. Thanks a lot. Perfect. perfect Thanks a lot. thanks a lot

Speaker 7: Thank you. Dear speakers, there are further audio questions. I would now like to hand the conference over to Alexandre Leroy for any written questions. Thank you. thank you Dear speakers, there are further audio questions. dear speakers there are further audio questions I would now like to hand the conference over to Alexandre Leroy for any written questions. i would now like to hand the conference over to alexandre leroy for any written questions

Speaker 8: Thank you. We have a couple of questions from Steve Alder over the internet. Steve asks the follow-up question on the gauge disposal, if it's a Q3 or a Q4 cash inflow. Or said differently, the Q3 figure already figures the $10 million. Thank you. thank you We have a couple of questions from Steve Alder over the internet. we have a couple of questions from steve alder over the internet Steve asks the follow-up question on the gauge disposal, if it's a Q3 or a Q4 cash inflow. steve asks the follow-up question on the gauge disposal if it's a q3 or a q4 cash inflow Or said differently, the Q3 figure already figures the $10 million. or said differently the q3 figure already figures the $10 million

Speaker 6: No, it's a Q4 cash inflow. No, it's a Q4 cash inflow. no it's a q4 cash inflow

Speaker 8: The second question is that if there might be some other disposal of non-core activities within the Sensing and Monitoring segment going forward. The second question is that if there might be some other disposal of non-core activities within the Sensing and Monitoring segment going forward. the second question is that if there might be some other disposal of non-core activities within the sensing and monitoring segment going forward

Speaker 6: There is a similar business to the one we just did in the U.S., so we have another gauge business here in France, and that's something we will potentially look for to dispose in the future. There is a similar business to the one we just did in the U.S., so we have another gauge business here in France, and that's something we will potentially look for to dispose in the future. there is a similar business to the one we just did in the u.s so we have another gauge business here in france and that's something we will potentially look for to dispose in the future

Speaker 8: As a third question, so first, congrats for our liability management. Steve asks if there is any ability to repay the asset-backed debt facility we have in the U.K., and if it's something that is top of the list on our end. As a third question, so first, congrats for our liability management. as a third question so first congrats for our liability management Steve asks if there is any ability to repay the asset-backed debt facility we have in the U.K., and if it's something that is top of the list on our end. steve asks if there is any ability to repay the asset-backed debt facility we have in the u.k and if it's something that is top of the list on our end

Speaker 6: Yes. There is an arbitrage to use. We've done already $50 million, as we said, in October of debt buyback. We want to do another $50 million on the back of the $100 million cash flow we believe we can generate by year-end. There is an arbitrage between this $30 million asset-backed facility, which was, as you may know, related to our data center in the U.K. The arbitrage between this debt, $30 million, and again, relieving some bonds. We have some early repayment fees that basically make the difference between the two. We will go for the cheapest option between early repayment and reducing the interest rate of both facilities. Yes. yes There is an arbitrage to use. there is an arbitrage to use We've done already $50 million, as we said, in October of debt buyback. we've done already $50 million as we said in october of debt buyback We want to do another $50 million on the back of the $100 million cash flow we believe we can generate by year-end. we want to do another $50 million on the back of the $100 million cash flow we believe we can generate by year-end There is an arbitrage between this $30 million asset-backed facility, which was, as you may know, related to our data center in the U.K. there is an arbitrage between this $30 million asset-backed facility which was as you may know related to our data center in the u.k The arbitrage between this debt, $30 million, and again, relieving some bonds. the arbitrage between this debt $30 million and again relieving some bonds We have some early repayment fees that basically make the difference between the two. we have some early repayment fees that basically make the difference between the two We will go for the cheapest option between early repayment and reducing the interest rate of both facilities. we will go for the cheapest option between early repayment and reducing the interest rate of both facilities

Speaker 8: No more questions from my end. Operators, do you have any questions over the phone? No more questions from my end. no more questions from my end Operators, do you have any questions over the phone? operators do you have any questions over the phone

Speaker 7: There are no further questions over the phone. Over to you, Alexandre. There are no further questions over the phone. there are no further questions over the phone Over to you, Alexandre. over to you alexandre

Speaker 8: Excellent. Please, Sophie. That was it. Excellent. excellent Please, Sophie. please sophie That was it. that was it

Speaker 2: Thank you very much. Very pleased with the quarter and re-emphasizing the target of $100 million cash flow for the year without the Pemex. We're quite confident we'll be achieving that. Thank you for listening, and I look forward to engaging with you in the coming weeks. Thank you very much. thank you very much Very pleased with the quarter and re-emphasizing the target of $100 million cash flow for the year without the Pemex. very pleased with the quarter and re-emphasizing the target of $100 million cash flow for the year without the pemex We're quite confident we'll be achieving that. we're quite confident we'll be achieving that Thank you for listening, and I look forward to engaging with you in the coming weeks. thank you for listening and i look forward to engaging with you in the coming weeks

Speaker 8: Thank you. Thank you. thank you

Speaker 2: Thank you. Thank you. thank you

Speaker 7: This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day. This concludes today's conference call. this concludes today's conference call Thank you for participating. thank you for participating You may now all disconnect. you may now all disconnect Have a nice day. have a nice day