Asker, 23 July 2025 at 21:15 CEST. Reference is made to the stock exchange notices by Argeo ASA (the “Company” or “Argeo” and together with its subsidiaries, the “Group”) regarding the Group’s critical financial situation and the board’s resolution to postpone its filing for bankruptcy following indications of interest received from various parties.
The various processes have not resulted in any concrete offers that would secure sufficient funding. The board has therefore resolved to proceed with filing for bankruptcy for Argeo ASA and its subsidiaries Argeo Survey AS, Argeo Robotics AS and Argeo Multiclient AS with Asker og Bærum tingrett.
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When the Company went public in 2021, the objective was to acquire a minimum of five AUV systems for ocean measurement and seabed mapping. These AUV systems were to be mounted on chartered vessels as needed. At that time, the Company believed that five systems would provide the necessary flexibility to manage periods with limited work.
However, customers requested offers with specified vessels, which conflicted with Argeo’s model of chartering vessels after contract awards. Argeo therefore acquired two vessels over time in addition to an extra container-based system. Furthermore, customers asked for a broader product range, prompting Argeo to invest in geotechnical equipment and make preparations to also manage ROV operations on the vessel Venture. During summer 2024, the Group demonstrated that three AUV systems in operation generated a good operating result. Since then, the market for the Group’s services have deteriorated.
Argeo was established to serve three market verticals: oil and gas, wind farms, and marine minerals. The Group has executed projects in all three verticals with good results and satisfied customers. In 2024, wind and minerals projects represented nearly 50% of the Group’s completed work. In 2025, the wind industry has scaled back significantly due to poor profitability and changed regulatory conditions, especially in the US. In addition, the UN has postponed a decision on license allocations for marine minerals. The oil and gas market has also weakened due to falling oil prices and this particularly impacted deep-sea projects which is the most relevant sub-segment for Argeo. As a result of the above, the flow of projects for Argeo fell significantly and already announced projects have been postponed, some for extended periods. While both of the Group’s vessels operated through most of Q2, significant uncertainty remained regarding future work despite several promising opportunities under development. These projects have still not been awarded despite originally being expected to start during Q2 this year. The result is that the Group’s two vessels have been without work for an extended period of time.
The Group’s daily operating costs approximate NOK 1.5 million, primarily comprising vessel operations, equipment costs, and essential crew expenses. To attempt to reduce costs, the board evaluated and pursued, together with investment banks and legal advisors, several solutions such as vessel sales, refinancing of part of the Group’s debt and equipment, potential mergers with companies where synergies were good, as well as new equity to secure a period without projects. All potential solutions required equity injection to fund operations until new contracts materialized and to establish local presence for an anticipated large contract in South America.
The Company, together with the investment banks, failed to secure new capital. As substantial capital was required from professional investors beyond the existing shareholder base, these efforts proved unsuccessful. The processes that were evaluated all required significant new equity of minimum NOK 150 million as the Group faced a summer period without confirmed projects.
Recently, the board has attempted to find new owners to continue operations in the Company and secure jobs. This has unfortunately not succeeded. While several major industrial players expressed interest and received access to information about the Group’s operations, none provided concrete offers within the Company’s available timeframe. As no realistic solutions could be implemented within the Company’s available timeframe, the board has therefore deemed bankruptcy filing as the only viable option to avoid operating at creditors’ expense. The board deeply regrets the outcome, but bankruptcy was the only possible solution without injection of significant fresh capital.
The board recognizes this outcome is deeply unfortunate for employees who committed to Argeo as their employer and for investors who viewed this as a promising, forward-looking business opportunity. The Company realized the business idea but failed to secure enough projects over time to ensure profitable operations.
For more information, please contact:
Jan Grimnes, Chairman
Email: Jan.grimnes@redback.no
Phone: +47 982 30 332
This information is considered to be inside information pursuant to the EU Market Abuse Regulation (MAR) and is subject to the disclosure requirements pursuant to MAR article 17 and section 5 -12 of the Norwegian Securities Trading Act. This stock exchange notice was published by Elisabeth Andenæs, Marketing and Communications Manager, at Argeo ASA on the date and time provided.
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