Q3 2024 Total Energy Services Inc Earnings Call Transcript
Key Points
- Total Energy Services Inc (TOTZF) reported record quarterly financial results for Q3 2024, with a 4% increase in consolidated revenue compared to Q3 2023.
- The acquisition of Saxon Energy Services significantly boosted operations in Australia, leading to a 93% increase in operating days and a 42% year-over-year increase in Australian revenue per operating day.
- The company demonstrated effective cost management across all segments, contributing to a 12% increase in EBITA compared to the previous year.
- Total Energy Services Inc (TOTZF) maintained a strong financial position with $97.3 million in positive working capital, including $61.9 million in cash.
- The CPS segment experienced a 34% year-over-year increase in EBITA, driven by increased rental fleet utilization and improved fabrication sales margins.
- Total Energy Services Inc (TOTZF) faced a year-over-year decline in U.S. drilling and completion activity, impacting overall revenue.
- The Canadian CD segment saw a 5% decrease in revenue due to a 7% decline in operating days, partially offset by a 2% increase in revenue per day.
- The U.S. market remains highly competitive, with pricing pressures affecting the drilling and well servicing segments.
- A damaged drilling rig in Canada negatively impacted operating days and revenue during Q3 2024.
- The well servicing segment experienced a 2% decrease in EBITA and a 5% decrease in EBITA margin due to lower activity in the U.S. and reactivation costs in Australia.
Welcome to Total Energy third quarter, 2024 results conference call and webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded after today's presentation, there will be an opportunity to ask questions to ask, to join the question queue. You may press star then one on your telephone keypad.
Should you need assistance during the conference call? You may signal an operator by pressing star then zero.
I would now like to turn the conference over to Daniel Hale, President and CEO of Total Energy Services Inc. Please go ahead.
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Thank you. Good morning and welcome to Total's third quarter, 2024. Conference call present with me is Julia Gorbach Total's VP Finance and CFO. We will review with you Total's financial and operating highlights for the three months ended, September 30th 2024 and then provide an outlook for our business and open up the phone lines for questions. Julia. Please go ahead.
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