Bri-Chem Announces 2024 Third Quarter Financial Results
Bri-Chem Announces 2024 Third Quarter Financial Results . (MENAFN - Newsfile Corp) 
Edmonton, Alberta--(Newsfile Corp. - November 14, 2024) - Bri-Chem Corp. (TSX: BRY) ("Bri-Chem" or "Company"), a leading North American oilfield chemical distribution and ...
América - MenaFN
(MENAFN- Newsfile Corp) Edmonton, Alberta--(Newsfile Corp. - November 14, 2024) - Bri-Chem Corp. (TSX: BRY) ("Bri-Chem" or "Company"), a leading North American oilfield chemical distribution and blending company, is pleased to announce its 2024 third quarter results.

Three months ended Nine months ended September 30 Change September 30 Change (in '000s except per share amounts) 2024 2023 $ % 2024 2023 $ % Financial performance Sales $ 21,975 $ 26,830 $ (4,855) (18%) $ 62,452 $ 79,260 $ (16,808) (21%) Adjusted EBITDA(1) 587 1,051 (464) (44%) 851 4,638 (3,788) (82%) As a % of revenue 3% 4% 1% 6% Operating earnings 234 1,185 (951) (80%) 710 3,698 (2,988)

(81%) Adjusted net (loss) / earnings (1) (549) (293) (256) 87% (2,900) 812 (3,712)

(457%) Net (loss) / earnings $ (269) $ (376) $ 107 (28%) $ (2,263) $ 442 $

(2,705)

(612%) Per diluted share Adjusted EBITDA (1) $ 0.02 $ 0.04 $ (0.02) (51%) $ 0.03 $ 0.17 $ (0.14) (80%) Adjusted net (loss) / earnings (1) $ (0.02) $ (0.01) $ (0.01) 91% $ (0.11) $ 0.03 $

(0.14)

(458%) Net (loss) / earnings $ (0.01) $ (0.01) $ - 0% $ (0.09) $ 0.02 $

(0.11)

(661%) Financial position Total assets $ 57,101 $ 70,532 $

(13,431)

(19%) Working capital 13,740 16,012 (2,271)

(14%) Long-term debt 6,564 6,771 (208)

(3%) Shareholders equity $ 21,248 $ 22,780 $

(1,532)

(7%)

(1) Non-GAAP financial measure. Refer to "Non-GAAP Financial Measures" in this press release.

Key Q3 2024 highlights include:

Consolidated sales for the three months ended September 30, 2024 were $22 million, which is an 18% decrease from the prior year. The decrease is primarily due to decreased US drilling activities, driven by a lower average rig count.

Consolidated gross margin for the three months ended September 30, 2024 decreased by $1.1 million compared to the same period last year. The gross margin dollar decrease is primarily related to the decrease in sales in the US divisions.

Adjusted EBITDA for the third quarter 2024 decreased by $464 thousand when compared to the same period in the prior year and operating earnings decreased by $951 thousand for the three months ended September 30, 2024 compared to the prior year.

Adjusted net loss per diluted share for the three months ended September 30, 2024 was $0.02 per share compared to adjusted net loss of $0.01 per diluted share for same period last year.

Working capital, as at September 30, 2024, was $13.7 million compared to $16 million at September 30, 2023, a decrease of 14%. The decrease in working capital relates to an increase in accounts payable. Decreases in accounts receivable and inventory were offset by a decrease in bank indebtedness.

Summary for the three months ended September 30, 2024:

Consolidated sales for the three months ended September 30, 2024 were $22 million compared to $26.8 million for the same period in 2023, representing a $4.9 million decrease over the comparable period. Revenue was negatively impacted by lower US drilling activity, specifically natural gas drilling regions, compared to 2023.

Bri-Chem's Canadian drilling fluids distribution division generated sales of $3.8 million for the three months ended September 30, 2024 compared to $3.9 million in the comparable prior period. The slight decrease in sales relates to the slowing of sales of select commodity items. The number of active operating land rigs in Q3 2024 averaged 206, compared to 187 in the same period last year representing an increase of approximately 10% (Source: Baker Hughes). Bri-Chem's United States drilling fluids distribution division generated sales of $11.7 million for the three months ended September 30, 2024 compared to sales of $15.5 million for the comparable period in 2023, representing a quarterly decrease of 24%. This decrease mainly relates to a decrease in the US rig count as the number of active operating land rigs in Q3 2024 averaged 566, compared to a 2023 Q3 average of 627 representing a decrease of approximately 10% (Source: Baker Hughes).

Bri-Chem's Canadian blending and packaging division generated sales of $4.6 million for the three months ended September 30, 2024 compared to Q3 2023 sales of $3.9 million, representing a quarterly increase of $682 thousand. The increase in sales relates to higher cementing and stimulation activities in Western Canada. US blending and packaging sales for the three months ended September 30, 2024 were $1.8 million compared to $3.5 million in the prior year. The $1.7 million decrease relates to the loss of commodity sales due to customer self supply initiatives.

Operating earnings for the three months ended September 30, 2024 was $234 thousand which is a decrease from $1.2 million in the same period in the prior year. Adjusted EBITDA was $587 thousand for Q3 2024 compared to $1.1 million for Q3 2023, the decrease is primarily driven by decreased margin due to lost sales. Adjusted EBITDA as a percentage of sales was 3% for the quarter, which is a slight decrease from the 4% achieved in Q3 2023. The Adjusted EBITDA as a percentage of sales decrease is primarily attributable to the decrease in margin during the quarter.

OUTLOOK

In the near term, the main challenges facing the oil and gas industry are volatile commodity prices and the restrained growth in USA drilling activity due to a preference of major oil and gas companies returning cash to shareholders rather than focusing on growing production. If commodity prices stabilize for an extended period, then we expect customers to strengthen their balance sheets which in turn will increase new drilling activity. As we move into fiscal 2025, we remain optimistic about our outlook given the recent US election results and the prospect for more favorable oil and gas drilling policies. We will continue to navigate current industry challenges, and will closely monitor future market conditions and adjust our strategies as necessary to mitigate risks and explore new opportunities.

About Bri-Chem

Bri-Chem has established itself, through a combination of strategic acquisitions and organic growth, as the North American industry leader for wholesale distribution and blending of oilfield drilling, completion, stimulation and production chemical fluids. We sell, blend, package and distribute a full range of drilling fluid products from 25 strategically located warehouses throughout Canada and the United States. Additional information about Bri-Chem is available at or at Bri-Chem's website at .

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2024-11-14
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(MENAFN - Newsfile Corp) 
Edmonton, Alberta--(Newsfile Corp. - November 14, 2024) - Bri-Chem Corp. (TSX: BRY) ("Bri-Chem" or "Company"), a leading North American oilfield chemical distribution and ...
Bri-Chem Announces 2024 Third Quarter Financial Results