Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What is your outlook for the seismic market in 2025 compared to the overall offshore E&P spending growth? A: Sven Borre Larsen, CFO, mentioned that their current plans are based on a 2% to 3% growth in overall E&P spending, which tends to correlate with the seismic market. The growth could be higher depending on how exploration budgets are allocated between drilling and data acquisition.
Q: Are there any geographical areas showing stronger improvement, particularly in the Gulf of Mexico? A: Kristian Johansen, CEO, noted that the South Atlantic, including Brazil and Latin America, is very active. West Africa and Norway are also seeing improved activity. The Gulf of Mexico could benefit from political changes, but immediate impacts are uncertain due to bureaucratic processes.
Q: Can you provide more details on the streamer fleet capacity and its allocation between multi-client and contract work? A: Kristian Johansen, CEO, explained that the balance between multi-client and contract work is finely tuned, with some contracts potentially recognized as multi-client due to significant pre-funding. The specifics can vary and are subject to further discussion.
Q: How do you see pricing and margins for the streamer market developing in 2025? A: Kristian Johansen, CEO, stated that they do not plan for significant changes in pricing, which is currently healthy. The focus is on maintaining a disciplined approach to ensure a reasonable return on capital.
Q: What is the current pre-funding level for multi-client projects, and were there any standout regions in Q4 sales? A: Sven Borre Larsen, CFO, indicated that pre-funding levels are significantly higher than 2-3 years ago, often around 100%. Q4 sales were well-distributed, with no particular region standing out, although the western hemisphere showed more activity.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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