The following is a summary of the Calfrac Well Services Ltd. (CFWFF) Q3 2024 Earnings Call Transcript:
Financial Performance:
Calfrac reported Q3 2024 revenue from continuing operations at $430.1 million, marking an 11% decrease from Q3 2023, primarily due to reduced activity and pricing in the United States.
Adjusted EBITDA was $65 million, a decrease of 29% from the same period last year, with declines in North America offset by increases from Argentinian operations.
Calfrac experienced a net loss from continuing operations of $6.7 million in Q3 2024 compared to a net income of $97.5 million in Q3 2023.
Business Progress:
Calfrac is progressing with its fleet modernization program, operating 60 tier four DGB pumps, with plans to operate five next-gen fleets in North America early next year.
Significant profitability increase in Argentina driven by a second large fracturing fleet and zero non-productive time in offshore coiled tubing operations.
Opportunities:
Continued growth and market-leading services are anticipated in Argentina, especially with the planned addition of a permanent second large fracturing fleet servicing the Vaca Muerta play.
Risks:
Seasonal end-of-year slow down in North America might impact short-term profitability.
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