在這篇文章中:
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Revenue: $221.6 million for Q3 2024.
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Adjusted EBITDA: $50.2 million, representing 23% of revenue.
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Net Income: $24.5 million, translating to $0.12 per share.
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Free Cash Flow: $32.4 million generated during the quarter.
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Capital Expenditures (CapEx): $15.2 million, with $10.4 million for maintenance and $4.8 million for upgrades.
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Working Capital: Approximately $136.5 million at the end of the quarter.
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Share Repurchase: 7.5 million shares repurchased and canceled under the NCIB program in Q3 2024.
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Dividend: $0.045 per share, totaling approximately $8.5 million to shareholders.
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Cement Division Revenue: Increased by 7% in Q3 2024.
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Frac Crews Revenue: Down 18% year-over-year.
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Coil Tubing Revenue: Decreased by 5% year-over-year.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Trican Well Service Ltd (TOLWF) reported solid revenue of $221.6 million for Q3 2024, despite a challenging commodity price environment.
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The company generated free cash flow of $32.4 million during the quarter, demonstrating strong financial management.
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Trican's balance sheet remains robust with positive working capital of approximately $136.5 million.
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The cementing division performed well with a 7% increase in revenue and over 1% increase in EBITDA, showcasing strong market share and expertise.
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Trican is actively modernizing its systems and investing in technology to ensure long-term growth and sustainability.
Negative Points
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Adjusted EBITDA for Q3 2024 was $50.2 million, down from $65.7 million in Q3 2023, indicating a decline in profitability.
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Certain customers delayed portions of their capital programs due to water restrictions and well licensing requirements, impacting revenue.
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Frac crew revenue was down 18% year over year, reflecting reduced demand in certain areas.
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The coil tubing division's revenue decreased by 5% year over year, highlighting challenges in scaling the division.
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Trican is experiencing pricing pressure from competitors, which could impact future margins.
Q & A Highlights
Q: Can you elaborate on Trican's strategy for 100% natural gas-fueled operations and what factors are considered in selecting this technology? A: Bradley Fedora, President and CEO, explained that while the technology for 100% natural gas-fueled operations is available, factors such as operational reliability, equipment footprint, and return on investment are critical. The Tier 4 technology offers 80% efficiency with minimal operational changes, allowing for diesel use if gas supply is interrupted. The decision will depend on practicality in Canadian settings and cost-effectiveness.