Q3 2024 Trican Well Service Ltd Earnings Call Transcript
Key Points
- Trican Well Service Ltd (TOLWF) reported solid revenue of $221.6 million for Q3 2024, despite a challenging commodity price environment.
- The company generated free cash flow of $32.4 million during the quarter, demonstrating strong financial management.
- Trican's balance sheet remains robust with positive working capital of approximately $136.5 million.
- The cementing division performed well with a 7% increase in revenue and over 1% increase in EBITDA, showcasing strong market share and expertise.
- Trican is actively modernizing its systems and investing in technology to ensure long-term growth and sustainability.
- Adjusted EBITDA for Q3 2024 was $50.2 million, down from $65.7 million in Q3 2023, indicating a decline in profitability.
- Certain customers delayed portions of their capital programs due to water restrictions and well licensing requirements, impacting revenue.
- Frac crew revenue was down 18% year over year, reflecting reduced demand in certain areas.
- The coil tubing division's revenue decreased by 5% year over year, highlighting challenges in scaling the division.
- Trican is experiencing pricing pressure from competitors, which could impact future margins.
Good morning, ladies and gentlemen. Welcome to the Trican Well service third-quarter 2024 earnings results conference call and webcast. As a reminder, this conference is being recorded.
I would now like to turn the meeting over to Mr. Brad Fedora, President and Chief Executive Officer of Trican Well Service Limited. Please go ahead, Mr. Fedora.
Good morning, everyone. Thank you for joining our Q3 call, first instead of Scott Matson, who's traveling today, Desmond Ho, our Director of Corporate Finance will give an overview of the quarterly results. And then as usual, I will provide some comments with respect to the corridor, the current operating conditions and our outlook for the rest of this year and next year. And then we'll open the call for questions. We have several members of our executive team in the room today and everybody will be available to answer questions not only during this call, but for the remainder of the day, I turn the call over to Desmond.
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