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Oil States International, Inc. (OIS) Q3 2024 Earnings Call Transcript Summary

Futu News ·  03:27  · Conference Call

The following is a summary of the Oil States International, Inc. (OIS) Q3 2024 Earnings Call Transcript:

Financial Performance:

  • Q3 2024 revenues were $174M, adjusted EBITDA $22M, adjusted net income $2.7M.

  • Generated $29M in operational cash flows, reduced net debt by $20M.

Business Progress:

  • Strategic collaboration with Seadrill to enhance offshore MPD operations safety and efficiency.

  • Transitioned Well Site Services to align with strategic future.

Opportunity:

  • Global collaboration with Seadrill and Halliburton enhances market penetration and revenue.

  • Expanded EPIC portfolio increases flexibility in completion operations.

Risk:

  • Potential crude oil price declines and reduced OPEC+ production cuts in 2025 could impact demand.

  • Weaker U.S. market conditions, with an 8% decline in U.S. frac spread count.

Financial Performance:

  • Q3 2024 revenues were $174 million, with adjusted consolidated EBITDA at $22 million, and adjusted net income at $2.7 million, or $0.04 per share.

  • Offshore/Manufactured Products segment achieved $102 million in revenues with adjusted EBITDA of $23 million.

  • Completion and Production Services segment revenues totaled $40 million, with adjusted EBITDA falling to $5.4 million.

  • Downhole Technologies segment reported revenues of $32 million and adjusted EBITDA of $1 million.

  • Generated $29 million in operational cash flows, leading to a net debt reduction of $20 million.

  • Expects to achieve net debt zero in 2025.

Business Progress:

  • Announced a strategic non-exclusive collaboration with Seadrill Limited to increase safety and efficiency of offshore MPD operations.

  • Delivered first Integrated Riser Joints to Seadrill for MPD operations in Brazil.

  • Exited underperforming locations and business lines in the U.S., including the sale of drilling rigs and exit from flowback and well testing operations.

  • Transitioned Well Site Services to Completion and Production Services to align with future strategy.

Opportunities:

  • Global collaboration with Seadrill and Halliburton supports increased market penetration of managed pressure drilling technology.

  • Initiatives to secure long-term contracts with international customers for the supply of perforating products are gaining traction.

  • Expanded EPIC portfolio of perforating systems offers increased flexibility and revenue opportunities in completion operations.

Risks:

  • Decline in crude oil prices and potential reduction of voluntary production cuts by OPEC+ in 2025 pose risks to demand and revenue.

  • Weaker U.S. market conditions influenced by record U.S. production and an 8% sequential decline in U.S. frac spread count.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.

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