The following is a summary of the TETRA Technologies, Inc. (TTI) Q1 2024 Earnings Call Transcript:
Financial Performance:
TETRA Technology witnessed 3% year-on-year revenue growth, with an adjusted EBITDA increase of 11%.
The company reported an adjusted EBITDA of $22.8 million and adjusted EBITDA margins for Completion Fluids & Products at 28.1%.
Revenues for Water & Flowback Services fell by 5% year-on-year, leading to a $5.8 million reduction in adjusted EBITDA.
The firm anticipates achieving over $30 million in adjusted EBITDA for Q2 2024 and expects free cash flow to be over $40 million for the year.
Business Progress:
The company's Completion Fluids & Products saw increased activity in the Gulf of Mexico and the Middle East, enhancing adjusted EBITDA by 20% sequentially.
TETRA Technology is preparing for increased offshore and deepwater activity through strategic capacity investments in Brazil, the Gulf of Mexico, and the North Sea, indicating a bullish outlook for deepwater market growth.
Plans are in place to have the first commercial desalination contract for beneficial reuse operational by 2025 and to have the Arkansas Bromine Plant operational by 2026.
They seek to improve margins through implementing automation technology in water services and flowback businesses, targeting a 20% margin level by 2025.
TETRA Technology expects to further its growth in 2024 and generate strong free cash flow from their base business, suggesting a positive future performance.
More details: Tetra Technologies IR
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