Bri-Chem (BRY) Q2 2023 earnings summary

Executive summary

• Q2 sales were $25.2M, down $240K YoY; adjusted EBITDA rose $190K to $2.0M, while operating earnings fell 28% to $1.2M.

• H1 sales increased 7% to $52.4M; adjusted EBITDA declined 15% to $3.6M and adjusted net earnings fell 57% to $1.1M.

Financial highlights

• Q2 net earnings were $553K, up 62% YoY; adjusted net earnings were $714K, down 19%.

• H1 net earnings were $818K versus $8.1M YoY; adjusted net earnings were $1.1M versus $2.6M.

• Q2 adjusted EBITDA was $1.972M versus $1.782M YoY; as a share of revenue, it improved to 8% from 7%.

Outlook and guidance

• Oil and gas activity showed signs of stabilization, expected to continue through year-end; stable WTI and rig counts may support regional growth in Texas and Oklahoma.

• Depressed natural gas prices cloud near-term activity; pricing adjustments and lower-cost sourcing are intended to improve margins.

• Growth opportunities at the Midland, Texas facility are expected to materialize over the next 6–12 months.

• Maintaining a low-cost overhead structure is a priority to remain prepared for rapid changes in activity.