On August 14, 2024, in Edmonton, Alberta, Bri-Chem Corp. (TSX: BRY), a leading oilfield chemical distribution and blending company in North America, announced its financial results for the second quarter of 2024.
Key highlights from the second quarter of 2024 include a 24% decrease in consolidated sales compared to the prior year, primarily due to reduced US drilling activities. Gross margin also decreased by $976 thousand, mainly related to a decline in sales in the fluids distribution division.
Adjusted EBITDA for the second quarter of 2024 declined by $1.3 million compared to the same period in the prior year, and operating earnings decreased by $596 thousand for the three months ended June 30, 2024, compared to the previous year.
Adjusted net loss per diluted share for the quarter was $0.02, a decrease from adjusted net earnings of $0.03 per share during the same period last year. Working capital as of June 30, 2024, was $14.1 million, down by 11% from the previous year due to decreases in accounts receivable and inventory.
Looking ahead, challenges faced by the drilling fluids market include volatile commodity prices and restrained growth in US drilling activity. Management will focus on optimizing inventory and manpower requirements across North America to adapt to changing market conditions.
Bri-Chem has positioned itself as a leader in the industry through strategic acquisitions and organic growth. The company operates 25 warehouses in Canada and the United States, offering a full range of drilling fluid products.
For more information, please refer to the official press release available at the source link provided.
Disclaimer: This communication is not intended for distribution to U.S. newswire services or dissemination in the U.S.
