Q2 2024 Core Laboratories Inc Earnings Call Transcript
Key Points
- Revenue increased slightly to $130.6 million in Q2 2024 from $129.6 million in Q1 2024.
- Operating margins improved from 12% to 13%, reflecting better cost control and operational efficiencies.
- EPS increased to $0.22 per share in Q2 2024 from $0.19 in Q1 2024.
- Net debt was reduced by $15.8 million, lowering the leverage ratio to 1.66, the lowest in five years.
- Free cash flow improved significantly, with $14.3 million generated in Q2 2024 compared to $1.2 million in the first half of the previous year.
- Geopolitical conflicts, particularly in the Middle East and Russia-Ukraine region, continue to negatively impact demand for laboratory services.
- Production enhancement revenue declined by approximately 2% compared to Q1 2024, largely due to lower product sales outside the US.
- G&A expenses increased to $10.3 million in Q2 2024 from $8.3 million in Q1 2024, driven by changes in the value of company-owned life insurance investments and costs related to cybersecurity and human capital management systems.
- US onshore client activity is anticipated to be sequentially lower, impacting future revenue growth.
- The US frac spread count continues to trend lower, indicating a soft market for the remainder of the year.
Good day and welcome to the core laboratory Second Quarter 2024 earnings conference call. Today, all participants will be in a listen-only mode. Should you need assistance during today's call please signal for a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question. You may press star, then one on a touchtone phone. To withdraw your question, you may press star then two. Please note that today's event is being recorded. I would now like to turn the conference over to Larry Bruno, Chairman and CEO. Please go ahead.
Thanks, Chris. Good morning.
In the Americas, good afternoon in Europe, Africa and the Middle East and good evening in Asia. Pacific. I would like to welcome all of our shareholders, analysts and most importantly, our employees to Core Laboratories' Second Quarter 2024 earnings call. This morning, I'm joined
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