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Highlights

  • Calfrac Well Services secured CAD 483.0 million in sales in Q3 2023 vs. CAD 438.3 million in pcp.
  • For the reporting period, the firm posted a gross profit of CAD 79.2 million, while net income from continuing operations stood at CAD 97.5 million.
  • Its earnings before taxes rose to CAD 94.9 million from CAD 52.3 million in pcp.

Calfrac Well Services Ltd (TSX: CFW) offers oilfield services to several oil and natural gas industries in the United States, Russia, Canada, and Argentina. Aiming to transform into a next-gen pressure pumping firm, CFW has employed higher number of Tier IV dynamic gas blending (DGB) fracturing pumps, for increased cash flows.

In Q3 2023, CFW secured CAD 483.0 million in sales, which was CAD 438.3 million in pcp. As per the company, it was mainly because of successful plan implementation and higher activity across operating divisions. For the reporting period, the firm posted a gross profit of CAD 79.2 million, while net income from continuing operations stood at CAD 97.5 million versus CAD 52.3 million in Q3 2022.

Also, earnings before taxes rose to CAD 94.9 million from CAD 52.3 million in pcp. It lowered its net debt to EBITDA ratio to 0.92 from 1. Calfrec aims to reduce borrowings by ~CAD 80.0 million by the end of the year.

In November 2023, Calfrec improved its period-end working capital from CAD 183.6 million at December 31, 2022 to CAD 283.7 million follwoing higher revenue and better geographical mix.

Overall, CFW secured net earnings of CAD 86.5 million, compared to CAD 50.0 million in pcp.

Top 10 Shareholders

Around 63.44% of the total shareholding is held by its top ten shareholders. While G2S2 Capital Inc is the biggest shareholder with a maximum stake in the company at approximately 32.87%, Mathison (Ronald P) owns 11.17% shares in the firm.

Stock Price Performance

CFW’s stock price has increased 1.01% in the last one month. It has grown by approximately 9.40% in the last three months. The stock’s 52-week high and low price stand at CAD 6.2 and CAD 3.70, respectively.

 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 23, 2024. The reference data in this report has been partly sourced from EODHD/Others.