In This Article:
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Revenue: $430.1 million from continuing operations in Q3 2024, an 11% decrease from Q3 2023.
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Adjusted EBITDA: $65 million in Q3 2024, a 29% decline from the same period last year.
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Net Loss: $6.7 million from continuing operations in Q3 2024, compared to net income of $97.5 million in Q3 2023.
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Capital Expenditures: $22.5 million in Q3 2024, down from $50.8 million in Q3 2023.
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Working Capital: $307.1 million from continued operations at the end of Q3 2024.
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Cash: $17.7 million, with approximately $13.6 million held in Argentina.
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Net Debt to Adjusted EBITDA Ratio: 1.62 at the end of Q3 2024.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Calfrac Well Services Ltd (CFWFF) reported consistent financial results in Q3 2024, with growth in their Frt coil and cement businesses.
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The company achieved significant profitability increase in Argentina, driven by the deployment of a second large fracturing fleet and increased utilization of offshore coil tubing equipment.
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Calfrac Well Services Ltd (CFWFF) is focused on transitioning its fracturing equipment to next-gen technologies, with plans to operate five next-gen fleets in North America by early next year.
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The company has made leadership changes in the United States and Argentina, which are expected to enable quicker delivery on strategic priorities.
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Calfrac Well Services Ltd (CFWFF) has reduced its year-over-year training incident rate, demonstrating a strong commitment to safety and operational efficiency.
Negative Points
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Revenue from continuing operations decreased by 11% compared to the same period in 2023, primarily due to lower activity and pricing in the United States.
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Adjusted EBITDA declined by 29% from the same period last year, attributed to lower utilization in North America and pricing challenges in the United States.
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The company reported a net loss of 6.7 million CAD from continuing operations during Q3 2024, compared to a net income of 97.5 million CAD in Q3 2023.
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Capital expenditures decreased significantly from 50.8 million CAD in Q3 2023 to 22.5 million CAD in Q3 2024, indicating reduced investment in fleet modernization.
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Working capital absorbed cash during the quarter, with expectations of further working capital requirements due to growth in Argentina.
Q & A Highlights
Q: Can you discuss the earnings power of the Argentinian business now that you have two fleets in the Vaca Muerta? Do you expect this to continue through 2025? A: Michael Olinek, CFO: We achieved strong financial performance in Q3, partly due to transitioning equipment and supplementing with rental equipment. We expect Argentina's earnings power to maintain Q3 levels, but this will likely start in Q2 next year. For Q4, we anticipate a return to normal activity levels until the permanent second fleet is operational.