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Jun 30, 2021
TETRA Q2 2021 Earnings Report
Announced second quarter 2021 results, attainment of low carbon energy milestones and secured multiple deepwater awards.
Key Takeaways
TETRA Technologies reported a 32% sequential increase in revenue to $102 million in Q2 2021, with improvements across all business segments. The company's adjusted EBITDA, excluding non-recurring charges, was $13.0 million, a 44% increase from Q1 2021. They also secured multiple deepwater awards and achieved milestones in low carbon energy initiatives.
Second quarter revenue increased by 32% sequentially, driven by improvements in all business segments.
Adjusted EBITDA rose by 44% compared to the first quarter, reflecting stronger operational performance.
Completion Fluids and Products Adjusted EBITDA margin improved by 400 basis points from the first quarter of 2021, reaching 27.7%.
The company reduced its term loan by $36.3 million from September 30, 2020, to June 30, 2021, and further reduced it by another $8.2 million in July.
Revenue by Segment
Forward Guidance
TETRA expects continued recovery in its North American onshore business with higher prices, stronger international fluids activity, and potential for strong market recovery in all segments heading into 2022.
Positive Outlook
- Expects continued recovery in North American onshore business.
- Anticipates higher prices.
- Expects stronger activity in international fluids business.
- Sees potential for strong market recovery in all segments heading into 2022.
- Third quarter EBITDA and related margins are expected to benefit from two newly awarded recycling projects and a fully deployed Sandstorm project in Argentina.
Challenges Ahead
- Faced with some inflationary headwinds in our Water and Flowback business ahead of our ability to get broad based price increases.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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