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Sep 30, 2024
Oil States Q3 2024 Earnings Report
Reported a net loss due to restructuring and other charges, but offshore segment performed well.
Key Takeaways
Oil States International reported a net loss of $14.3 million for Q3 2024, impacted by $18.2 million in restructuring and other charges. Adjusted net income was $2.7 million, or $0.04 per share. Revenues decreased 6% sequentially to $174.3 million, driven by lower U.S. land activity and project delays in the Gulf of Mexico. The Offshore Manufactured Products segment showed strength, with revenues flat and Adjusted Segment EBITDA up 16%.
Net loss of $14.3 million, or $0.23 per share, reported for the quarter, including restructuring and other charges.
Adjusted net income of $2.7 million, or $0.04 per share, excluding restructuring charges.
Consolidated revenues of $174.3 million decreased 6% sequentially.
Offshore Manufactured Products segment revenues were flat, while Adjusted Segment EBITDA rose 16%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company expects activities to resume in the Gulf in the fourth quarter following delays caused by Hurricane Milton and strategic optimization efforts in U.S. operations along with the exit of more commoditized business lines should enhance operating margins in future periods.
Positive Outlook
- Activities expected to resume in the Gulf in Q4 following Hurricane Milton delays.
- Strategic optimization efforts in U.S. operations should enhance operating margins.
- Exit of more commoditized business lines expected to improve margins.
- Strong outlook for offshore and international project-driven business.
- Growing market acceptance of new technology offerings like integrated riser joint.
Challenges Ahead
- Highly cyclical nature of select U.S. service lines.
- Strategic decision to close five additional underperforming gas-focused locations within Completion and Production Services segment.
- Strategic decision to close one underperforming location within Downhole Technologies segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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