The following is a summary of the Oil States International, Inc. (OIS) Q2 2024 Earnings Call Transcript:
Financial Performance:
Q2 2024 consolidated revenues up 11%, with adjusted EBITDA up 38%.
Net income was $1.3 million, adjusted net income $4.4 million.
Business Progress:
Relocation of Southeast Asian operations to Batam scheduled for early 2025.
Introduced new managed pressure drilling systems.
Opportunity:
Positive outlook for offshore and international projects with stable oil prices.
New opportunities in clean tech sectors like carbon capture.
Risk:
Declining U.S. land drilling and completion activity levels.
Risk of negative business impact if OPEC+ ends production cuts in 2025.
Financial Performance:
Q2 2024 consolidated revenues increased by 11% and adjusted EBITDA increased by 38% sequentially.
Offshore/Manufactured Products segment revenues were $102 million, up 17% sequentially with adjusted EBITDA up 27%.
Well Site Services adjusted segment EBITDA increased 30% in a declining U.S. land market.
Downhole Technologies segment revenues and adjusted segment EBITDA increased 16% and 42%, respectively.
Net income stood at $1.3 million or $0.02 per share, with adjusted net income of $4.4 million or $0.07 per share.
Business Progress:
Continued advancement in Offshore/Manufactured Products including a book-to-bill ratio of 1x.
Strategic optimization of Well Site Services, including the closure of underperforming U.S. locations.
Introduction of proprietary technologies like managed pressure drilling systems.
Relocation of Southeast Asian operations from Singapore to Batam to lower manufacturing costs, with completion targeted for early 2025.
Strong focus on technology innovation and deployment across sectors, including the adoption of active seat valves and new EPIC portfolio of perforating systems.
Opportunities:
Positive outlook on offshore and international projects supported by stable oil prices.
Expected strong demand influencing future bookings and backlog.
New opportunities in deep sea mineral gathering, offshore wind, carbon capture, and other clean tech energy sectors.
Risks:
Lower U.S. land drilling and completion activity levels with a flat outlook for the remainder of 2024.
Potential negative impact on business if OPEC+ ceases voluntary production cuts in 2025.
More details: Oil States International IR
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