Bri-Chem (BRY) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales fell 18% YoY to $22.0 million, mainly due to lower US drilling activity; operating earnings and Adjusted EBITDA also declined.

• Nine-month sales were $62.5 million, down 21% YoY; the period recorded a net loss of $2.3 million versus net earnings of $442 thousand in 9M 2023.

Financial highlights

• Q3 sales were $22.0 million versus $26.8 million; gross margin dollars decreased $1.1 million YoY, primarily due to lower US divisional sales.

• Q3 operating earnings were $234 thousand, down 80% YoY; Adjusted EBITDA was $587 thousand, down 44%, with margin at 3% versus 4%.

• Q3 Adjusted net loss was $549 thousand versus $293 thousand; net loss improved to $269 thousand from $376 thousand.

• 9M revenue was $62.5 million, down 21%; operating earnings were $710 thousand versus $3.7 million, while Adjusted EBITDA was $851 thousand versus $4.6 million.

Outlook and guidance

• For FY2025, outlook remains optimistic given recent US election results and the prospect of more favorable oil and gas drilling policies.

• Sustained commodity price stability could strengthen customers’ balance sheets and support increased drilling activity; strategies will be adjusted as market conditions evolve.