Viridien - comment

The Q1 numbers were strong. DDE (data business) benefited from NOCS and E&P majors gearing up for a stronger drilling environment. The SMO (manufacturing) business saw a modest decline in revenue, as trailed in the FY 24 results presentation. Viridien’s guidance is based on Brent price per barrel of $65 and $85. However, Brent has fallen sharply from $75 per barrel in March to $64 today. FCF of $100m for 2025 excludes the $40m costs of the Q1 refinance. Although with $150m in cash and an undrawn RCF of $125m, Viridien has plenty of liquidity if oil prices remain depressed. EBITDA will also be boosted by the ship leasing payments falling away in Q225. According to management, tariff concerns have not changed client behaviour regarding capex so far.