The following is a summary of the Total Energy Services Inc. (TOTZF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Total Energy Services Inc. reported record quarterly financial results for Q3 2024, with consolidated revenue up 4% from Q3 2023.

• EBITDA increased by 12% compared to the same quarter last year, due to acquisitions and effective cost management.

• Gross margin improved to 26% from 24% in the previous year, driven by margin improvement in CPS and RTS segments despite a decrease in the CDS segment.

Business Progress:

• The company successfully acquired Saxon Energy Services, enhancing its capabilities in Australia and increasing its market share.

• Expanded the drilling and well servicing fleet in Australia, including deployment and upgrades of new rigs under long-term contracts.

• The CPS segment continues to see strong demand for compression and process equipment, particularly from the North American LNG export capacity expansion.

• Total Energy plans to increase its 2024 capital budget by $19.8 million to further invest in growth opportunities.

Opportunities:

• Significant demand in the LNG market and investment to increase North American LNG export capacity present growth opportunities.

• The recent completion of the Trans Mountain pipeline expansion in Canada and strong market conditions in the Asian LNG market offer additional business prospects.

Risks:

• Market challenges in the United States, including decreased activity and pricing pressures, particularly in the drilling and well servicing sectors, pose ongoing risks.

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