The following is a summary of the Calfrac Well Services Ltd. (CFWFF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Calfrac reported Q4 2023 revenue of $421.4 million, down 6% from the same period in 2022.
Revenue for FY 2023 totalled nearly $1.9 billion, reflecting a 24% increase from the previous year.
The adjusted EBITDA in Q4 2023 was $62.6 million, down 18% from Q4 2022.
Net income from continuing operations fell 11% in Q4 to $13.2 million, but registered a significant year-on-year rise, reaching $197.6 million for FY 2023.
Capital expenditures increased to $165.4 million in 2023 due to the company's fleet modernization program.
Business Progress:
Calfrac expanded its operational footprint in North America and improved utilization across all operating divisions in 2023.
The company is currently in negotiations to sell its Russian division and reported the best annual net income from continuing operations in its history.
It reduced its long-term debt balance to its lowest since 2009.
In Q4, the company catered to increased demand for low emission equipment by deploying two Tier IV DGB fleets in North America.
Looking forward, Calfrac plans to invest in technology enhancements and continue reducing its long-term debt in 2024.
The company projects strong utilization in Argentina throughout 2024 due to a favorable political climate.
More details: CALFRAC WELL SERVICES LTD IR
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