The following is a summary of the Total Energy Services Inc. (TOTZF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Total Energy Services reported a 14% decrease in consolidated revenue for Q1 2024 compared to the same period last year, due to lower drilling activity in the U.S. and extended wet weather in Australia.
The company reported a 28% consolidated gross margin, an increase from 25% a year before.
Despite revenue decrease, CDS segment's Q1 EBITDA increased 10% year-over-year due to price increases, rig upgrades and cost management.
Company ended quarter with a positive working capital of $124.4 million, including $45 million in cash.
Business Progress:
Company acquired Saxon Energy Services Australia, strengthening CDS segment operations.
A 13% increase in the company's dividend approved by the board.
Total Energy Services anticipate significant growth in the CPS segment's compression rental fleet and plans to introduce new rigs in Australia.
Company is working on increasing throughput without adding capacity by utilizing physical floor space creatively and adding shifts.
Significant investment in rental group should help enhance other lines of equipment with adequate supply.
More details: TOTAL ENERGY SERVICES INC IR
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