The following is a summary of the Trican Well Service Ltd. (TOLWF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Trican reported Q1 2024 revenue of $271.9 million, with adjusted EBITDA of $72.8 million or 27% of revenues, a decrease compared to Q1 2023 due to reduced activity levels.
The company had positive earnings of $41.2 million for the quarter, yielding $0.20 per share basic and $0.19 per share on a fully diluted basis.
Positive free cash flow of $49.9 million was generated during the quarter, with $15.3 million being allocated to capital expenditure.
The quarter ended with a positive working capital of approximately $175 million, inclusive of cash of $9.3 million.
Business Progress:
Trican commissioned their fifth Tier 4 fleet during the quarter, specifically designed for high-pressure areas in the Duvernay and Montney.
In the cementing division, near 100% utilization was achieved, contributing to a 10% increase in revenue and EBITDA over Q1 2023.
A partnership was established aimed at increasing market share in oily areas, an aspect the company had previously not ventured into.
They anticipate better Q2 2024 results due to advancements within cement and coil divisions.
Trican has identified Western Canada as a region with potential for substantial growth exploring its capacity for natural gas supply.
On a strategic note, Trican focuses on optimizing returns rather than condoning market share expansion, emphasizing the value placed on long-term, profitable client relationships.
More details: TRICAN WELL SERVICE IR
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