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Highlights

  • Calfrac Well Services’ top-line business grew to CAD 483.0 million in Q3 2023 from CAD 438.3 million in the previous corresponding period.
  • CFW also registered an increase in its gross profit to CAD 79.2 million in the reporting period.
  • It secured a net income of CAD 97.5 million from continuing operations, as compared to CAD 52.3 million in Q3 2022.

Calfrac Well Services Ltd (TSX: CFW) aims to become a next-generation pressure pumping player in the global market. It has deployed more Tier IV dynamic gas blending (DGB) fracturing pumps. Furthermore, CFW is planning to deploy an additional 41 upgraded Tier IV DGB units by the end of Q1 2024.

In the third quarter of the year 2023, the company’s top-line business grew to CAD 483.0 million from CAD 438.3 million in the previous corresponding period. CFW also registered an increase in its gross profit to CAD 79.2 million in the reporting period. It secured a net income of CAD 97.5 million from continuing operations, as compared to CAD 52.3 million in Q3 2022.

The company lowered its net debt to EBITDA ratio. Going forth, CFW intends to reduce its debt by about CAD 80.0 million by the end of 2023.

Calfrac Well Services’ period-end working capital increased from CAD 183.6 million to CAD 283.7 million on December 31, 2022, thanks to elevated revenue and geographical mix. Its earnings before tax was recorded at CAD 94.9 million for the quarter, as compared to CAD 52.3 million in Q3 2023, because of increased gross profits and reversal of impairment of property, plant and equipment.

Overall, Calfrac secured net earnings of CAD 86.5 million versus CAD 50.0 million in Q3 2022.

Notably, the company’s debt-to-equity ratio dropped in the reporting period. Additionally, CFW posted decent liquidity ratios as well as higher cash from operations in the quarter.

Top 10 Shareholders:

Around 66.79% of the total shareholding is held by the top ten shareholders of the company. While G2S2 Capital Inc holds maximum shareholding of approximately ­­­34.76%, Mathison (Ronald P) is the second biggest shareholder in CFW with over 11.55% stake.

Stock Price Performance

CFW’s stock price has gained approximately 2.90% over the last one week. It has fallen by 13.01% over the last one month. The stock’s 52-week high and low price stand at CAD 7.35 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 November 17, 2023. The reference data in this report has been partly sourced from EODHD/Others.