Dril-Quip reported a 31% sequential increase in revenue, driven by the acquisition of Great North and key deliveries to customers. Free cash flow was the highest since 2017, benefiting from improved working capital and a U.S. tax refund. However, capacity constraints in the offshore rig market are introducing headwinds.
Revenue increased 31% sequentially and 33% year-over-year to $117.2 million.
Net Loss decreased to $7.0 million, a $10.5 million decrease sequentially.
Cash provided by operations was $26.8 million, an increase of $25.8 million year-over-year.
Free cash flow was $21.4 million, the highest since 2017.
Capacity constraints in the offshore rig market are introducing headwinds. Multiple customers have delayed product orders and service deliveries due to rig availability delaying drilling schedules, with latest estimates pushing some activity to spring of 2024. Our view that we are in the early innings of a multi-year offshore upcycle and that Dril-Quip’s portfolio is well-positioned for growth remains unchanged.
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