Q3 2024 Oil States International Inc Earnings Call Transcript
Key Points
- Oil States International Inc (OIS) reported strong results in its offshore manufactured products segment, with revenues totaling $102 million and adjusted segment EBITDA of $23 million.
- The company achieved its largest bookings quarter of the year, with bookings totaling $112 million, up 11% sequentially, and a backlog of $313 million.
- A strategic collaboration with Seadrill Limited aims to enhance safety and efficiency in offshore managed pressure drilling (MPD) operations, potentially generating $35 million to $45 million annually in associated revenue.
- Oil States International Inc (OIS) generated $29 million in cash flows from operations during the quarter, leading to a net debt reduction of $20 million.
- The company expects to be net debt zero during 2025, which is anticipated to serve as a catalyst for stock price improvement.
- Completion and Production Services segment revenues decreased 14% sequentially, impacted by weaker US market conditions and the exit of underperforming locations.
- Adjusted segment EBITDA decreased at a higher rate due to weaker offshore activity in the Gulf of Mexico, partly caused by hurricanes.
- The Downhole Technologies segment experienced a decrease in revenues and adjusted segment EBITDA due to weaker completion product sales.
- Oil States International Inc (OIS) reported pre-tax intangible and lease asset impairment charges of $13 million, along with facility consolidation and exit charges of $3.5 million.
- Crude oil pricing declined during the quarter due to concerns about reduced oil demand in China and potential changes in OPEC-plus production cuts, affecting market conditions.
Good morning. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to Oil States 3Q earnings call. (Operator Instructions) I will now turn the call over to Ellen Pennington, Senior Counsel. Ellen, please go ahead.
Thank you, Mark. Good morning, and welcome to Oil States third quarter 2024 earnings conference call. Our call today will be led by our President and CEO, Cindy Taylor; and Lloyd Hajdik, Oil States' Executive Vice President and Chief Financial Officer.
Before we begin, we would like to caution listeners regarding forward-looking statements. To the extent that our remarks today contain information other than historical information, please note that we are relying on the safe harbor protections afforded by federal law.
No one should assume these forward-looking statements remain valid later in the quarter or beyond. Any such remarks should be weighed in the context of the many factors
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