Bri-Chem (BRY) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales were $19.1M, down 24% YoY; lower US drilling activity weighed on revenue, while Canadian blending and packaging sales grew.

• Adjusted EBITDA was $707K and net loss was $488K; both declined from Q2 2023, with margin pressure from lost sales and foreign exchange loss.

Financial highlights

• Q2 sales fell to $19.106M from $25.229M; H1 sales were $40.477M vs. $52.430M, down $11.953M YoY.

• Q2 operating earnings were $620K vs. $1.216M; H1 operating earnings were $476K vs. $2.513M.

• Q2 adjusted EBITDA was $707K vs. $1.972M; H1 adjusted EBITDA was $264K vs. $3.587M.

• Q2 net loss was $488K vs. net earnings of $553K; H1 net loss was $1.994M vs. net earnings of $818K.

• Adjusted net loss was $584K in Q2 and $2.351M in H1, compared with adjusted net earnings of $714K and $1.105M in the respective 2023 periods.

Outlook and guidance

• Near-term priorities are controlling inventory and maintaining balance-sheet strength until US drilling activity and demand for products improve.

• Canadian oil drilling activity is expected to increase in H2 with Trans Mountain Pipeline expansion activation; Canadian natural gas demand has risen modestly ahead of higher LNG export capacity.