Q2 2024 Ensign Energy Services Inc Earnings Call Transcript
Key Points
- Ensign Energy Services Inc (ESVIF) achieved one of its strongest quarters in history, driven by a 15% year-over-year increase in demand for Canadian rigs.
- The company successfully reduced $80 million of debt in the quarter, contributing to its goal of reducing $600 million of debt over the next three years.
- International operations saw a marginal year-over-year increase in activity, with 100% utilization of high-spec rigs in the Middle East and Argentina.
- The Canadian business unit is experiencing high demand for high-spec singles and triples, with 90% of the active fleet contracted until the end of Q1 2025.
- Interest expenses decreased by 19% due to lower debt levels and reduced effective interest rates, providing financial relief.
- Overall operating days declined in the second quarter of 2024, with a significant 32% decrease in the United States.
- Revenue for the second quarter of 2024 decreased by 9% compared to the same period in the previous year.
- Adjusted EBITDA for the second quarter of 2024 was 14% lower than the same quarter in 2023, reflecting declines in drilling activity.
- Depreciation expenses increased by 12% compared to the first six months of 2023, impacting profitability.
- The U.S. business unit faced challenges due to customer consolidation and depressed natural gas prices, leading to reduced activity.
Good afternoon, ladies and gentlemen, and welcome today. I'm joined Energy Services' Second Quarter 2024 Results Conference.(Operators instructions)
I would now like to turn the conference over to Nicole Romanow, Investor Relations.
Please go ahead.
Thank you, Jenny. Good morning and welcome to Ensign Energy Services Second Quarter Conference Call and Webcast. On our call today, Bob Geddes, President and COO, and Mike Gray, Chief Financial Officer, will review and find second quarter highlights and financial results, followed by our operational update and outlook. We'll then open the call for questions. Our discussion today may include forward-looking statements based upon current expectations that involve several business risks and uncertainties.
Factors that could cause results to differ materially include, but are not limited to, political, economic and market conditions, crude oil and natural gas prices, foreign currency fluctuations, weather conditions, the
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