In This Article:
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Revenue: $391.8 million for Q2 2024, a 9% decrease from $432.8 million in Q2 2023.
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Adjusted EBITDA: $100.2 million for Q2 2024, 14% lower than $116.6 million in Q2 2023.
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Operating Days: U.S. decreased by 32% to 2,912 days; Canada increased by 15% to 2,451 days; International increased by 1% to 1,255 days.
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Debt Reduction: $78.9 million repaid in Q2 2024; total of $307.9 million repaid from January 2023 to June 2024.
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Depreciation Expense: $170.8 million for the first six months of 2024, a 12% increase from $152.7 million in the same period of 2023.
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General and Administrative Expenses: $15.5 million in Q2 2024, up from $14.6 million in Q2 2023.
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Interest Expense: Decreased by 19% to $25.5 million from $31.6 million.
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Capital Expenditures: $40.3 million in Q2 2024, with $2.4 million in upgrade capital and $46.1 million in maintenance capital.
Release Date: August 02, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ensign Energy Services Inc (ESVIF) achieved one of its strongest quarters in history, driven by a 15% year-over-year increase in demand for Canadian rigs.
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The company successfully reduced $80 million of debt in the quarter, contributing to its goal of reducing $600 million of debt over the next three years.
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International operations saw a marginal year-over-year increase in activity, with 100% utilization of high-spec rigs in the Middle East and Argentina.
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The Canadian business unit is experiencing high demand for high-spec singles and triples, with 90% of the active fleet contracted until the end of Q1 2025.
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Interest expenses decreased by 19% due to lower debt levels and reduced effective interest rates, providing financial relief.
Negative Points
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Overall operating days declined in the second quarter of 2024, with a significant 32% decrease in the United States.
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Revenue for the second quarter of 2024 decreased by 9% compared to the same period in the previous year.
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Adjusted EBITDA for the second quarter of 2024 was 14% lower than the same quarter in 2023, reflecting declines in drilling activity.
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Depreciation expenses increased by 12% compared to the first six months of 2023, impacting profitability.
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The U.S. business unit faced challenges due to customer consolidation and depressed natural gas prices, leading to reduced activity.
Q & A Highlights
Q: Bob, given the debt repayment commitments, are you having to turn down growth capital opportunities? A: Robert Geddes, President and COO: No, we are keeping pace with customer needs. Operators are willing to invest in upgrades due to faster drilling, which supports growth CapEx.