Latest news with #energyservices
Trade Arabia
5 days ago
- Business
- Trade Arabia
TAQA announces CEO transition as part of strategic growth agenda
Industrialization and Energy Services Company (TAQA), a global leader in energy and industrial services, on Thursday (May 29) announced that Khalid Nouh will step down from his role as Chief Executive Officer, effective May 31, as part of the company's ongoing evolution and long-term strategic growth agenda. The Board of Directors has appointed Adel Al-Ghadhban as Interim Chief Executive Officer, effective June 1. Since his appointment in 2019, Nouh has been instrumental in transforming TAQA into a unified global organisation. Under his leadership, the company successfully integrated a series of value-driven acquisitions, including Tendeka (Completions), AZR (Wireline), OPT Chemicals, Cougar Drilling Solutions, Oliden Technologies, and AlMansoori Petroleum Services (AMPS). These integrations positioned TAQA as a fully integrated energy services provider with more than twelve service lines and 5,500 employees across global markets, a company statement said. During his tenure, TAQA digitised its business operations under a single platform, launched Centers of Excellence in Drilling, Completions, and Intervention, and established TAQA Geothermal, aligning the company with regional energy transition ambitions. Additionally, Nouh played a key role in positioning ARGAS to support mineral exploration initiatives. Under his guidance, the company achieved remarkable revenue growth, driven by strategic execution and operational excellence, it said. With this solid foundation in place, TAQA is now focused on accelerating its next phase—expanding market presence and driving innovation. Al-Ghadhban currently serves as Executive Vice President – Ventures & Chief Investment Officer and brings over 30 years of experience in multiple energy sectors including portfolio management and finance across the energy and manufacturing sectors, including 20 years with TAQA. He was responsible for leading the company's group legal, risk, and compliance functions, and guiding strategy for TAQA's portfolio companies. He also serves on the boards of several TAQA subsidiaries, including ARGAS as Vice Chairman, Cougar Drilling Solutions, TAQA Drilling Solutions (Canada), and was in board leadership roles at ALAR and JESCO. Nouh said: 'It has been an extraordinary journey and a privilege to lead TAQA through a period of remarkable growth and transformation. I am proud of what we've built together — a global platform with strong capabilities and a focus on sustainable, profitable growth. I leave confident in the company's direction and leadership, and excited to see it reach even greater heights.' Ahmed Al Zahrani, Chairman of the Board, stated: 'On behalf of the Board, I want to thank Khalid Nouh for his exceptional vision and dedication. He played a pivotal role in shaping TAQA into the global leader it is today—delivering on strategy, strengthening our service offering, and transforming the organization into ONE TAQA. As we look to the future, we are confident that Adel Al-Ghadhban will build on this legacy with a sharp focus on performance, innovation, and growth.'
Zawya
6 days ago
- Business
- Zawya
TAQA Saudi Arabia announces CEO transition as part of strategic growth agenda
DHAHRAN, Saudi Arabia/PRNewswire/ -- Industrialization and Energy Services Company ("TAQA"), a global leader in energy and industrial services, today announced that Khalid Nouh will step down from his role as Chief Executive Officer, effective 31 May 2025, as part of the company's ongoing evolution and long-term strategic growth agenda. Since his appointment in 2019, Khalid Nouh has been instrumental in transforming TAQA into a unified global organization. Under his leadership, the company successfully integrated a series of value-driven acquisitions, including Tendeka (Completions), AZR (Wireline), OPT Chemicals, Cougar Drilling Solutions, Oliden Technologies, and AlMansoori Petroleum Services (AMPS). These integrations positioned TAQA as a fully integrated energy services provider with more than twelve service lines and 5,500 employees across global markets. During his tenure, TAQA digitized its business operations under a single platform, launched Centers of Excellence in Drilling, Completions, and Intervention, and established TAQA Geothermal, aligning the company with regional energy transition ambitions. Additionally, Khalid played a key role in positioning ARGAS to support mineral exploration initiatives. Under his guidance, the company achieved remarkable revenue growth, driven by strategic execution and operational excellence. With this solid foundation in place, TAQA is now focused on accelerating its next phase—expanding market presence and driving innovation. To lead this new chapter, the Board of Directors has appointed Adel Al-Ghadhban as Interim Chief Executive Officer, effective 1 June 2025. Al-Ghadhban currently serves as Executive Vice President – Ventures & Chief Investment Officer and brings over 30 years of experience in multiple energy sectors including portfolio management and finance across the energy and manufacturing sectors, including 20 years with TAQA. He was responsible for leading the company's group legal, risk, and compliance functions, and guiding strategy for TAQA's portfolio companies. He also serves on the boards of several TAQA subsidiaries, including ARGAS as Vice Chairman, Cougar Drilling Solutions, TAQA Drilling Solutions (Canada), and was in board leadership roles at ALAR and JESCO. Khalid Nouh, Outgoing CEO, said: "It has been an extraordinary journey and a privilege to lead TAQA through a period of remarkable growth and transformation. I am proud of what we've built together—a global platform with strong capabilities and a focus on sustainable, profitable growth. I leave confident in the company's direction and leadership, and excited to see it reach even greater heights." Ahmed Al Zahrani, Chairman of the Board, stated: "On behalf of the Board, I want to thank Khalid Nouh for his exceptional vision and dedication. He played a pivotal role in shaping TAQA into the global leader it is today—delivering on strategy, strengthening our service offering, and transforming the organization into ONE TAQA. As we look to the future, we are confident that Adel Al-Ghadhban will build on this legacy with a sharp focus on performance, innovation, and growth." Adel Al-Ghadhban, Interim CEO, commented: "I am honored to take on this role at such a defining moment in TAQA's evolution. We have a strong foundation, a clear vision, and exceptional teams around the world. I look forward to working closely with our people, partners, and clients to build on our achievements and accelerate our strategic growth." About TAQA Founded in 2003, TAQA is an international company headquartered in Dharan that offers leading well solutions for the energy industry and is creating value and opportunity for all its stakeholders. TAQA has more than 5,500 people in more than 20 countries and serves multiple markets. TAQA offers a complete well solutions portfolio that includes Coiled Tubing and Stimulation, Cementing, Wireline, Frac, Directional Drilling, Downhole Tools, Completions, Well Testing, Slickline, Inspection, and H2S & Safety. SOURCE TAQA
Associated Press
19-05-2025
- Business
- Associated Press
National Energy Services Reunited Corp. Announces its Intention to Commence an Exchange Offer and Consent Solicitation
HOUSTON, TX / ACCESS Newswire / May 19, 2025 / National Energy Services Reunited Corp. ('NESR' or the 'Company') (Nasdaq:NESR)(Nasdaq:NESRW), an international, industry-leading provider of integrated energy services in the Middle East and North Africa ('MENA') region, today announced that it intends to commence (i) an exchange offer (the 'Offer') relating to its outstanding warrants to purchase ordinary shares of the Company, no par value (the 'Ordinary Shares'), which warrants trade on the Nasdaq Capital Market under the symbol 'NESRW' (the 'Warrants'), and (ii) a consent solicitation (the 'Consent Solicitation') relating to its outstanding Warrants. The Company intends to offer, to all holders of the Warrants, the opportunity to receive 0.10 Ordinary Shares in exchange for each outstanding Warrant tendered by the holder and exchanged pursuant to the Offer. Concurrently with the Offer, the Company also intends to solicit consents from holders of the Warrants to amend the warrant agreement that governs the Warrants (the 'Warrant Amendment') to permit the Company to require that each Warrant that is outstanding upon the closing of the Offer be converted at a ratio of 0.09 Ordinary Shares for each Warrant not tendered in the Offer. If approved, the Warrant Amendment would permit the Company to eliminate all of the Warrants that remain outstanding after the Offer is consummated. Pursuant to a tender and support agreement, holders of a majority of the outstanding Warrants have agreed to tender their Warrants in the Offer and consent to the Warrant Amendment in the Consent Solicitation. Important Additional Information This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any of the Warrants. The anticipated exchange offer and consent solicitation described in this press release has not yet commenced, and while the Company intends to commence the exchange offer and consent solicitation as soon as reasonably practicable upon the filing of definitive documentation with the SEC relating to the exchange offer and consent solicitation, and complete the exchange offer and consent solicitation, there can be no assurance that the Company will commence or complete the exchange offer and consent solicitation on the terms described in this press release, or at all. The exchange offer and consent solicitation will be made only through the Schedule TO and registration statement on Form S-4 that will include a prospectus/offer to exchange filed by the Company with the Securities and Exchange Commission (the 'SEC'), and the complete terms and conditions of the exchange offer and consent solicitation will be set forth therein. The full details of the exchange offer and consent solicitation, including complete instructions on how to exchange Warrants, will be included in such definitive documentation, which will become available to warrant holders upon commencement of the exchange offer. Cautionary Statement Regarding Forward Looking Statements Statements contained in this press release that are not historical fact may be forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Such forward-looking statements may relate to, among other things, the Company's expectations regarding the contemplated exchange offer and consent solicitation. Such forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties, including that NESR will be able to commence the contemplated exchange offer and consent solicitation. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in our filings with the SEC, including those factors discussed under the caption 'Risk Factors' in such filings. You are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. The Company disclaims any obligation to update any forward-looking statements to reflect any new information or future events or circumstances or otherwise, except as required by law. You should read this communication in conjunction with other documents which the Company may file or furnish from time to time with the SEC. About NESR Founded in 2017, NESR is one of the largest national oilfield services providers in the MENA and Asia Pacific regions. With over 6,000 employees, representing more than 60 nationalities in 16 countries, the Company helps its customers unlock the full potential of their reservoirs by providing Production Services such as Hydraulic Fracturing, Cementing, Coiled Tubing, Filtration, Completions, Stimulation, Pumping and Nitrogen Services. The Company also helps its customers to access their reservoirs in a smarter and faster manner by providing Drilling and Evaluation Services such as Drilling Downhole Tools, Directional Drilling, Fishing Tools, Testing Services, Wireline, Slickline, Drilling Fluids and Rig Services. For inquiries regarding NESR, or for investor queries, please contact: Blake Gendron National Energy Services Reunited Corp. 832-925-3777 [email protected] SOURCE: National Energy Services Reunited Corp. press release
National Post
14-05-2025
- Business
- National Post
STEP Energy Services Ltd. Reports First Quarter 2025 Results
Article content CALGARY, Alberta — STEP Energy Services Ltd. (the 'Company' or 'STEP') (TSX: STEP) is pleased to announce its financial and operating results for the three months ended March 31, 2025. The following Press Release should be read in conjunction with the management's discussion and analysis ('MD&A') and the unaudited condensed consolidated financial statements and notes thereto as at March 31, 2025 (the 'Financial Statements'). Readers should also refer to the 'Forward-looking information & statements' legal advisory and the section regarding 'Non-IFRS Measures and Ratios' at the end of this Press Release. All financial amounts and measures are expressed in Canadian dollars unless otherwise indicated. Additional information about STEP is available on the SEDAR+ website at including the Company's Annual Information Form for the year ended December 31, 2024 dated March 11, 2025 (the 'AIF'). Article content Article content FINANCIAL REVIEW ($000s except percentages and per share amounts) Three months ended March 31, March 31, 2025 2024 Consolidated revenue $ 307,741 $ 320,146 Net income (loss) $ 24,151 $ 41,357 Per share-basic $ 0.34 $ 0.58 Per share-diluted $ 0.33 $ 0.55 Adjusted EBITDA (1) $ 58,960 $ 71,135 Adjusted EBITDA % (1) 19% 22% Free Cash Flow (1) $ 32,172 $ 53,483 Per share-basic (1) $ 0.45 $ 0.74 Per share-diluted (1) $ 0.43 $ 0.72 (1) Adjusted EBITDA, Free Cash Flow, Free Cash Flow per share-basic and Free Cash Flow per share-diluted are non-IFRS financial measures, Adjusted EBITDA % is a non-IFRS financial ratio. These metrics are not defined and have no standardized meaning under IFRS. See Non-IFRS Measures and Ratios. Article content ($000s except shares) March 31, December 31 2025 2024 Cash and cash equivalents $ 2,016 $ 4,362 Working capital (including cash and cash equivalents) (2) $ 103,525 $ 35,355 Total assets $ 712,007 $ 580,635 Total long-term financial liabilities (2) $ 112,071 $ 83,394 Net Debt (2) $ 84,661 $ 52,668 Shares outstanding 72,029,690 72,037,391 (2) Working Capital, Total long-term financial liabilities and Net Debt are non-IFRS financial measures. They are not defined and have no standardized meaning under IFRS. See Non-IFRS Measures and Ratios. Article content OPERATIONAL REVIEW ($000s except days, proppant, pumped, horsepower and units) Three months ended March 31, March 31, 2025 2024 Fracturing services (3) Fracturing operating days (4) 487 566 Proppant pumped (tonnes) 786,618 830,000 Fracturing crews 7 8 Dual fuel horsepower ('HP'), ended 369,550 332,300 Total HP, ended 474,800 490,000 Coiled tubing services Coiled tubing operating days (4) 1,384 1,352 Active coiled tubing units, ended 22 22 Total coiled tubing units, ended 35 35 (3) Includes operational results from the terminated operations of the U.S. fracturing cash generating unit (4) An operating day is defined as any coiled tubing or fracturing work that is performed in a 24-hour period, exclusive of support equipment. Article content FIRST QUARTER 2025 HIGHLIGHTS Article content Consolidated revenue for the three months ended March 31, 2025 of $307.7 million, decreased 4% from $320.1 million for the three months ended March 31, 2024 and increased 109% from $147.5 million for the three months ended December 31, 2024. Net income for the three months ended March 31, 2025 of $24.2 million ($0.33 per diluted share), compared to $41.4 million ($0.55 per diluted share) in the same period of 2024 and a loss of $44.6 million ($(0.62) per diluted share) for the three months ended December 31, 2024. Included in income for the three months ended March 31, 2025, was share-based compensation expense of $1.3 million, compared to $0.8 million during the three months ended March 31, 2024 and $2.5 million during the three months ended December 31, 2024. For the three months ended March 31, 2025, Adjusted EBITDA was $59.0 million or 19% of revenue compared to $71.1 million or 22% of revenue in the comparative period of the prior year. Free Cash Flow for the three months ended March 31, 2025 was $32.2 million compared to $53.5 million in Q1 2024 and $(16.6) million in Q4 2024. STEP continued to advance its shareholder return strategy in 2025: During Q1 2025, the Company repurchased 617,100 shares at an average price of $4.43 per share under its Normal Course Issuer Bid ('NCIB'). Under the NCIB, the Company was permitted to repurchase and cancel 3.6 million shares, representing 5% of Company's issued and outstanding shares. Subsequent to quarter end, STEP repurchased 151,300 shares at an average price of $3.90 per share. Working Capital as at March 31, 2025 of $103.5 million was $68.1 million higher than the $35.4 million at December 31, 2024. The increase in working capital was partially due to the inclusion of $12.2 million in assets held for sale reclassed from property and equipment in the period, although it is typical to see a build up during the first quarter due to higher sequential activity levels. In Q1 2025 STEP pumped 787 thousand tonnes of proppant, a 5% decrease from the same period in 2024. These volumes include the 155 thousand tonnes in Q1 2025 and 271 thousand tonnes in Q1 2024 from the terminated operations of the U.S. fracturing cash generating unit ('CGU'). Excluding the proppant pumped related to the terminated operations, proppant increased 13% quarter over quarter. STEP introduced Canada's first 100% natural gas powered reciprocating engine hydraulic fracturing pump (the 'NGx'). The NGx is a collaboration between STEP and a major OEM (Original Equipment Manufacturer) that is trialing a select number of these engines with leading hydraulic fracturing companies across North America. This highly efficient next generation fracturing pump is expected to displace two conventional fracturing pumps and delivers substantial fuel savings through the 100% displacement of diesel with natural gas. In Q1 2025, the U.S. fracturing CGU was subject to changes in business conditions that materially impacted its expected future economic performance. As a result, STEP began an orderly process to terminate operations of this CGU following completion of the work scope in Q1. The Company expects to transfer the U.S. fracturing CGU's recently refurbished Tier 4 dual fuel equipment to Canada and will dispose of the remaining equipment over the next several quarters. As not all the equipment is being disposed of due to some assets being transferred to other CGU's, the accounting presentation does not meet the test for the IFRS standard for discontinued operations. STEP has noted the financial impact of the terminated operations in the Quarterly Financial Statements and related disclosures, including expanding the definition of Adjusted EBITDA to exclude the Adjusted EBITDA from terminated operations, to provide clarity on the Company's normal course business activities to users of these documents. See the Non-IFRS Measures and Ratios section below. Article content Natural gas prices in the first quarter showed strength, with the average benchmark U.S. Henry Hub and Canadian AECO natural gas prices increasing from the fourth quarter of 2024. Henry Hub averaged $3.87 (USD) per million cubic feet ('Mcf') in Q1 2025, up from $2.98 (USD) per Mcf in Q4 2024, while AECO-C Daily averaged $2.12 (CAD) per Mcf in Q1, up from $1.49 (CAD) per Mcf in Q4 2024. Natural gas prices typically benefit from the winter heating season, with colder weather driving higher demand. Oil prices traded in a tight range, with the benchmark West Texas Intermediate ('WTI') crude price averaging $71.42 (USD) per barrel in Q1, up from $70.32 (USD) per barrel in Q4 2024. Article content Oilfield service levels are primarily reflected in drilling rig counts publicly reported by Baker Hughes and estimates made by Primary Vision for fracturing crews in the U.S. Land based drilling rigs in the U.S. were stable, with an average of 566 rigs in the first quarter, in line with the 569 in the fourth quarter of 2024 but down from the 602 rigs in the first quarter of 2024. Canadian rig counts averaged 194 during the first quarter, in line with the 194 in the fourth quarter but down from the 208 rigs in the first quarter of 2024. U.S. fracturing fleets declined in the first quarter to an average of 202, down from 224 in the fourth quarter of 2024 and down from 255 in the first quarter of 2024. Article content STEP's consolidated revenue in the first quarter was $307.7 million, up from $147.5 million in the fourth quarter of 2024 but marginally down from the $320.1 million recorded in the same period from the prior year. The fracturing service line had high utilization through the quarter, with 487 operating days across seven crews, pumping 787 thousand tons of sand. Coiled tubing services were also highly utilized, operating 1,384 days across 22 units. Article content Adjusted EBITDA of $59.0 million (19% Adjusted EBITDA margin) was up from the $7.6 million (5% Adjusted EBITDA margin) in the fourth quarter of 2024 but down from $71.1 million (22% Adjusted EBITDA margin) in the same period last year. The margin compression against that period is the result of the pricing pressures as well as the cumulative effect of several years of high inflation, high volumes of sand which has lower margins, and deteriorating foreign exchange rates which have all combined to increase the Company's cost profile. Article content Net income was $24.2 million in Q1 2025 ($0.33 diluted income per share), sequentially higher than the $44.6 million loss in Q4 2024 ($0.62 diluted loss per share) but lower than the $41.4 million net income in Q1 2024 ($0.55 diluted income per share). Q4 2024 reflected an impairment of $24.0 million taken on certain U.S. fracturing CGU assets. Net income included $1.3 million in share‐based compensation expense (Q4 2024 ‐ $2.5 million, Q1 2024 ‐ $0.8 million expense) and $2.0 million in finance costs (Q4 2024 ‐ $2.4 million, Q1 2024 ‐ $2.9 million). Article content Free Cash Flow was $32.2 million in Q1 2025 ($0.43 diluted Free Cash Flow per share), sequentially higher than the negative $16.6 million in Q4 2024 and lower than the $53.5 million in Q1 2024. There was a significant build in working capital, increasing from $35.4 million at the end of fourth quarter to $103.5 million at the end of the first quarter. This build is typical for Q1, which follows a slower Q4 that realizes a sizable working capital recovery. The working capital increase was exacerbated this quarter by the inclusion of $12.2 million in assets held for sale reclassified from property and equipment related to the terminated U.S. fracturing operations and by delays in client receipts near the end of the quarter, resulted in Net Debt increasing to $84.7 million from $52.7 million at the close of Q4 2024. The increase in Net Debt and improvement in Adjusted EBITDA resulted in a 12-month trailing Funded Debt to Adjusted Bank EBITDA of 0.70:1.00, well under the limit of 3.00:1 in the Company's Credit Facilities (as defined in Capital Management – Debt below). The Company was also successful in renewing its Normal Course Issuer Bid in the first quarter and acquired 617,100 shares at a weighted average price of $4.43 per share in the quarter. Article content During the first quarter of 2025, management committed to a plan to terminate the Company's U.S. fracturing division. Certain of the assets will be transferred to Canada to support the Canadian fracturing division, while the remaining assets have been classified as held for sale, including inventory and property and equipment. The decision to terminate the U.S. fracturing CGU represented a material change in STEP's business. Operationally, STEP has been moving personnel and equipment between CGUs and countries and has been consolidating more functions corporately to streamline operations and provide uniform service regardless of region. As a result of the termination of U.S. fracturing STEP initiated an internal leadership reorganization and began presenting internal reporting to the chief operating decisions makers on a consolidated basis. Due to this STEP has determined that the Company's operations should be aggregated into one reportable operating segment as all remaining operating CGU's have similar characteristics so they will likely have the same future prospects. This change is effective for the Q1 2025 Financial Statements and Disclosures. Article content MARKET OUTLOOK Article content The global economy is in a period of uncertainty as businesses and policy makers react to the U.S. administration's trade actions and reactions from countries affected by these actions. The volatility could have a negative impact on global economic growth, putting pressure on commodity prices. Article content North American natural gas prices have increased from the lows reached in 2024 and are expected to remain steady through the rest of 2025. Increased demand from power generation, expansion of data centers, and commissioning of new LNG facilities later in 2025 provide structural tailwinds to a sector that has at times struggled with over supply and weak pricing. Oil prices have come under pressure from concerns over a global economic slowdown and the potential for the Organization of the Petroleum Exporting Countries (OPEC) to add more production to the market, creating a risk of oversupply. Article content Although commodity price volatility creates some uncertainty, the industry as a whole has strengthened considerably over the past five years. Leverage ratios have dropped for many producers and service providers, allowing for investment into technology and equipment that enables more efficient completions. The industry has shifted from a capital intensive, high growth model in the previous decade to a model that is focused on growth within cash flow and providing stable returns to investors. This shift has created a more resilient industry that can better withstand the current volatility than it has in the past. Article content STEP's revenue is largely driven by natural gas and natural gas liquids ('NGLs'), which should shield STEP's schedule from the worst of the commodity price volatility. However, if the volatility continues and commodity prices weaken further, it is likely that clients could defer work into later quarters or trim their core capital programs. STEP maintains close contact with its clients and will adjust its operations if activity slows. Article content The second quarter fracturing schedule will be affected by spring break up conditions, although the multi-well pad completion programs utilized by STEP's larger clients will allow for fracturing operations to continue. The slower period will allow for scheduled maintenance to be performed in advance of what is expected to be a reasonably well utilized third quarter for fracturing services. Article content Coiled tubing activity follows the fracturing cycle and is expected to see a modest slowdown in northern regions with spring break up before returning to steady utilization in the second half of the quarter and into the third quarter. Activity in the southern regions is expected to remain relatively stable through the second quarter and into the third quarter, although oil directed activity may slow down if the commodity price volatility continues. Clients are expected to continue drilling longer lateral lengths, given the lower cost profile these wells have. STEP's Coil+ technology is well positioned to take advantage of this trend. Article content Expectations for the fourth quarter are modest. This quarter is typically characterized by slower activity as clients exhaust their annual capital budgets, resulting in margin compression for service providers as increased competition and lower fixed cost leverage weigh on results. The additional demand coming from newly commissioned LNG facilities may offset that softness, but further clarity on this is unlikely to be forthcoming until the third quarter. Article content Pricing is largely in line with what was expected in 2025. Increased oilfield service capacity and limited producer growth has put downward pressure on margins relative to 2024. Cost control will be a focus for STEP as it navigates the current economic uncertainty. Tariffs are the most urgent concern, particularly the retaliatory tariffs that the Canadian government has placed on fracturing sand and steel products such as coiled tubing. STEP has worked with industry associations to request remission of these tariffs, but in the meantime STEP will work with its clients to minimize the impact on collective margins. Article content Although Net Debt increased in Q1 2025 to $84.7 million with the seasonal surge in working capital, the Company is comfortable with its leverage. The ratio of Net Debt to EBITDA is well within covenant requirements and ranks among the lowest across the Canadian oilfield service sector. STEP will continue to allocate Free Cash Flow towards continued debt reduction, but the progress made on leverage allowed STEP to renew its NCIB to buy back shares, taking advantage of the Company's low trading multiple and discount to book value. STEP will continue to opportunistically use its Free Cash Flow to buy back shares through the balance of the year. Article content ($000's except per share amounts) Three months ended March 31, March 31, 2025 2024 Fracturing $ 224,099 $ 236,342 Coiled tubing 83,642 83,804 Total revenue 307,741 320,146 Operating expenses 239,354 230,109 Depreciation and amortization 20,619 20,498 Total operating expenses 259,973 250,607 Gross profit 47,768 69,539 Selling, general and administrative 11,786 11,344 Depreciation and amortization 137 160 Total selling, general and administrative 11,923 11,504 Results from operating activities 35,845 58,035 Finance costs 1,978 2,909 Foreign exchange loss 402 2,317 Unrealized gain on derivatives (26 ) (1,983 ) Gain on disposal of property and equipment (734 ) (358 ) Amortization of intangible assets 138 10 Income before income tax 34,087 55,140 Income tax expense 9,936 13,783 Net income 24,151 41,357 Net Income per share – basic $ 0.34 $ 0.58 Net Income per share – diluted $ 0.33 $ 0.55 Adjusted EBITDA (1) $ 58,960 $ 71,135 Adjusted EBITDA % (1) 19% 22% (1) Adjusted EBITDA is a non-IFRS financial measure and Adjusted EBITDA % is a non-IFRS financial ratio. They are not defined and have no standardized meaning under IFRS. See Non-IFRS Measures and Ratios. (2) An operating day is defined as any coiled tubing or fracturing work that is performed in a 24-hour period, exclusive of support equipment. Article content For the three months ended March 31, 2025, revenue decreased 4% to $307.7 million compared to $320.1 million for the three months ended March 31, 2024. Article content Alignment with large scale operators continues to provide a strong baseline of utilization for both fracturing and coiled tubing operations. STEP operated seven fracturing crews during the quarter, down from eight for the same period of the prior year. Fracturing operating days for the quarter were down 14% while sand volumes decreased by only 5% reflecting the change in higher pumping intensity in Montney and Duvernay based operations. Article content STEP reactivated one additional coiled tubing spread during the quarter bringing the total active spreads to 22 which is comparable to the prior year. Coiled tubing operations had a slight increase in operating days, supported by new technology offerings and strategic client alignment. These factors continue to be a key drivers for increased activity with dedicated work secured with significant clients in all operating basins. Article content Operating expenses includes employee costs, direct operating expenses such as repairs, transportation and facility costs, material and inventory costs, depreciation of equipment and share-based compensation for operational employees. The following table provides a summary of operating expenses: Article content Employee costs and general operating expenses decreased slightly compared to the prior year as declining costs associated with of the slow down in U.S. fracturing operations were partially offset by inflationary impacts on the overall cost of operations. Article content Material and inventory costs increased significantly compared to the prior year as changes in sand mix, increases in STEP supplied sand and currency fluctuations increased the cost of materials. Article content The following table provides a summary of selling, general and administrative expenses: Article content Selling, general and administrative expenses were in line with the prior year with the majority of the increase coming from higher share-based compensation expense. Share-based compensation expense was higher in the first quarter of 2025 as the share price was higher relative to the same period in 2024. Article content Terminated Operations Article content Results from consolidated operations include the results from the terminated operations presented below. In the first quarter of 2025, the U.S. fracturing CGU was subject to changes in business conditions that materially impacted its expected economic performance. As a result, STEP has decided to exit this market and has suspended all further work related to these operations. The results of the terminated operations are as follows: Article content ($000s except days, proppant, pumped, horsepower and units) Three months ended March 31, March 31, 2025 2024 U.S. Fracturing services terminated operations Fracturing operating days (2) 54 116 Proppant pumped (tonnes) 155,330 271,000 Fracturing crews 1 2 (2) An operating day is defined as any coiled tubing or fracturing work that is performed in a 24-hour period, exclusive of support equipment. Article content NON-IFRS MEASURES AND RATIOS Article content This Press Release includes terms and performance measures commonly used in the oilfield services industry that are not defined under IFRS. The terms presented are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS measures have no standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The non-IFRS measures should be read in conjunction with the Company's quarterly financial statements and Annual Financial Statements and the accompanying notes thereto. Article content 'Adjusted EBITDA' is a financial measure not presented in accordance with IFRS and is equal to net (loss) income before finance costs, depreciation and amortization, (gain) loss on disposal of property and equipment, current and deferred income tax provisions and recoveries, equity and cash settled share-based compensation, transaction costs, foreign exchange forward contract (gain) loss, foreign exchange (gain) loss, impairment losses and Adjusted EBITDA from terminated operations (1). 'Adjusted EBITDA %' is a non-IFRS ratio and is calculated as Adjusted EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA % are presented because they are widely used by the investment community as they provide an indication of the results generated by the Company's normal course business activities prior to considering how the activities are financed and the results are taxed. The Company uses Adjusted EBITDA and Adjusted EBITDA % internally to evaluate operating and segment performance, because management believes they provide better comparability between periods. Article content (1) STEP has expanded the definition of Adjusted EBITDA to exclude the Adjusted EBITDA from terminated operations in order to provide clarity on the Company's normal course business activities to users of these documents. As a reminder, in Q1 2025, the U.S. fracturing CGU was subject to changes in business conditions that materially impacted its expected future economic performance. As a result, STEP began an orderly process to terminate operations of this CGU following completion of the work scope in Q1. The Company expects to transfer the U.S. fracturing CGU's recently refurbished Tier 4 dual fuel equipment to Canada and will dispose of the remaining equipment over the next several quarters. As not all the equipment is being disposed of, the accounting presentation does not meet the test for the IFRS standard for discontinued operations. Article content The following table presents a reconciliation of the non-IFRS financial measure of Adjusted EBITDA to the IFRS financial measure of net income: Article content ($000s except percentages) Three months ended March 31, March 31, 2025 2024 Net income (loss) $ 24,151 $ 41,357 Add (deduct): Depreciation and amortization 20,894 20,668 Gain on disposal of equipment (734 ) (358 ) Finance costs 1,978 2,909 Income tax expense (recovery) 9,936 13,783 Share-based compensation – Cash settled 335 (295 ) Share-based compensation – Equity settled 954 1,135 Foreign exchange loss (gain) 402 2,317 Unrealized (gain) loss on derivatives (26 ) (1,983 ) Adjusted EBITDA from terminated operations (1) 1,070 (8,398 ) Adjusted EBITDA $ 58,960 $ 71,135 Adjusted EBITDA % 19% 22% Article content (1) Adjusted EBITDA from terminated operations is calculated in the same manner as the calculation of Adjusted EBITDA but does not include non-applicable items, such as unrealized (gain) loss on derivatives nor foreign exchange losses (gain) amounts. The calculation of Adjusted EBITDA from terminated operations is as follows: Article content ($000s except percentages) Three months ended March 31, March 31, 2025 2024 Net income (loss) from terminated U.S. fracturing operations, net of taxes $ (4,034 ) $ 1,218 Add (deduct): Depreciation and amortization 3,491 6,562 Gain on disposal of equipment (386 ) (91 ) Finance costs 29 142 Income tax expense (recovery) – 468 Share-based compensation – Equity settled (170 ) 99 Adjusted EBITDA from terminated operations $ (1,070 ) $ 8,398 Article content 'Free Cash Flow' is a financial measure not presented in accordance with IFRS and is equal to net cash provided by operating activities adjusted for changes in non-cash Working Capital from operating activities, sustaining capital expenditures, term loan principal repayments and lease payments (net of sublease receipts). The Company may deduct or include additional items in its calculation of Free Cash Flow that are unusual, non-recurring or non-operating in nature. Free Cash Flow is presented as this measure is widely used in the investment community as an indication of the level of cash flow generated by ongoing operations. Management uses Free Cash Flow to evaluate the adequacy of internally generated cash flows to manage debt levels, invest in the growth of the business or return capital to shareholders. The following table presents a reconciliation of the non-IFRS financial measure of Free Cash Flow to the IFRS financial measure of net cash provided by operating activities. Article content 'Free Cash Flow per share-basic' is a financial measure not presented in accordance with IFRS and is equal to Free Cash Flow divided by the weighted average number of shares outstanding – basic. Management uses Free Cash Flow per share-basic to evaluate the adequacy of internally generated cash flows to manage debt levels, invest in the growth of the business or return capital to shareholders on a normalized per basic share basis. The following table presents a reconciliation of the non-IFRS financial measure of Free Cash Flow per share-basic to the IFRS financial measure of net cash provided by operating activities. Article content 'Free Cash Flow per share-diluted' is a financial measure not presented in accordance with IFRS and is equal to Free Cash Flow divided by the weighted average number of shares outstanding – diluted. Management uses Free Cash Flow per share-basic to evaluate the adequacy of internally generated cash flows to manage debt levels, invest in the growth of the business or return capital to shareholders on a normalized per diluted share basis. The following table presents a reconciliation of the non-IFRS financial measure of Free Cash Flow per share-basic to the IFRS financial measure of net cash provided by operating activities. Article content 'Working Capital', 'Total long-term financial liabilities' and 'Net Debt' are financial measures not presented in accordance with IFRS. 'Working Capital' is equal to total current assets less total current liabilities. 'Total long-term financial liabilities' is comprised of loans and borrowings, long-term lease obligations and other liabilities. 'Net Debt' is equal to loans and borrowings before deferred financing charges less cash and cash equivalents and CCS derivatives. The data presented is intended to provide additional information about items on the statement of financial position and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Article content The following table represents the composition of the non-IFRS financial measure of Working Capital (including cash and cash equivalents). Article content The following table presents the composition of the non-IFRS financial measure of Total long-term financial liabilities. Article content The following table presents the composition of the non-IFRS financial measure of Net Debt. Article content The oilfield services industry involves many risks, which may influence the ultimate success of the Company. The risks and uncertainties set out in the AIF and Annual MD&A are not the only ones the Company is facing. There are additional risks and uncertainties that the Company does not currently know about or that the Company currently considers immaterial which may also impair the Company's business operations and can cause the price of the Common Shares to decline. Readers should review and carefully consider the disclosure provided under the heading ' Risk Factors ' in the AIF and ' Risk Factors and Risk Management ' in the Annual MD&A, both of which are available on and the disclosure provided in the MD&A under the headings ' Market Outlook '. In addition, global and national risks associated with market uncertainty due to changing tariffs and other trade barriers may adversely affect the Company by, among other things, reducing economic activity resulting in lower demand, and pricing, for crude oil and natural gas products, and thereby the demand and pricing for the Company's services. Other than as supplemented in this Press Release, the Company's risk factors, and management thereof has not changed substantially from those disclosed in the AIF and Annual MD&A. Article content Certain statements contained in this Press Release constitute 'forward-looking statements' or 'forward-looking information' within the meaning of applicable securities laws (collectively, 'forward-looking statements'). These statements relate to the expectations of management about future events, results of operations and the Company's future performance (both operational and financial) and business prospects. All statements other than statements of historical fact are forward-looking statements. The use of any of the words 'anticipate', 'plan', 'contemplate', 'continue', 'estimate', 'expect', 'intend', 'propose', 'might', 'may', 'will', 'shall', 'project', 'should', 'could', 'would', 'believe', 'predict', 'forecast', 'pursue', 'potential', 'objective' and 'capable' and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. While the Company believes the expectations reflected in the forward-looking statements included in this Press Release are reasonable, such statements are not guarantees of future performance or outcomes and may prove to be incorrect and should not be unduly relied upon. Article content In particular, but without limitation, this Press Release contains forward-looking statements pertaining to: 2025 and 2026 industry conditions and outlook, including commodity pricing and demand for oil and gas; the effect of LNG facilities on export capacity, natural gas storage, and industry activity levels; anticipated utilization and activity levels, revenue, pricing, and schedule; capabilities of the NGx, including fuel savings, and the Company's intent to invest in the technology; the oil and gas industry's ability to withstand volatility; the Company's ability to transfer assets where economic returns are most favourable; the Company's ability to test and evaluate next generation technologies; the effect large clients and their programs may have on the Company's activity levels; the Company's intention to invest in the development of next generation coiled tubing technologies; the effect of tariffs and other trade barriers, inflation and cost increases on the Company and its margins; the Company's view that the NCIB is an effective means to provide value to shareholders; the impact of weather and break up on the Company's operations; the Company's ability to meet all financial commitments including interest payments over the next twelve months; the Company's plans regarding equipment; the Company's ability to manage its capital structure and adjust the Company's budget in light of market conditions; expected debt repayment and Funded Debt to Adjusted Bank EBITDA ratios; expected income tax and derivative liabilities; adequacy of resources to funds operations, financial obligations and planned capital expenditures; the Company's ability to retain its existing clients; the monitoring of impairment, amount and age of balances owing, and the Company's financial assets and liabilities denominated in U.S. dollars, and exchange rates; the Company's expected compliance with covenants under its Credit Facilities and its ability to satisfy its financial commitments thereunder. Article content The forward-looking information and statements contained in this Press Release reflect several material factors and expectations and assumptions of the Company including, without limitation: the effect of macroeconomic factors, including global energy security concerns and levels of oil and gas inventories; tariffs, trade barriers, and related market concerns; levels of oil and gas production and LNG export capacity on the market for the Company's services; that the Company will continue to conduct its operations in a manner consistent with past operations; the Company will continue as a going concern; the general continuance of current or, where applicable, assumed industry conditions; pricing of the Company's services; the Company's ability to market successfully to current and new clients; predictability of 2025 and 2026 activity levels; actual performance of the NGx; predictable effect of seasonal weather and break up on the Company's operations; the Company's ability to utilize its equipment; the Company's ability to collect on trade and other receivables; Client demand for dual fuel fleets and emissions reduction technologies; the Company's ability to obtain and retain qualified staff and equipment in a timely and cost effective manner; levels of deployable equipment; future capital expenditures to be made by the Company; future funding sources for the Company's capital program; the Company's future debt levels; the availability of unused credit capacity on the Company's credit lines; the impact of competition on the Company; the Company's ability to obtain financing on acceptable terms; the Company's continued compliance with financial covenants; the amount of available equipment in the marketplace; and client activity levels and spending. The Company believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable, but no assurance can be given that these factors, expectations and assumptions will prove correct. Article content Actual results could also differ materially from those anticipated in these forward‐looking statements due to the risk factors set forth under the heading 'Risk Factors' in the AIF and under the heading Risk Factors and Risk Management in this Press Release. Article content Any financial outlook or future orientated financial information contained in this Press Release regarding prospective financial performance, financial position or cash flows is based on the assumptions about future events, including economic conditions and proposed courses of action based on management's assessment of the relevant information that is currently available. Projected operational information, including the Company's capital program, contains forward looking information and is based on a number of material assumptions and factors, as are set out above. These projections may also be considered to contain future oriented financial information or a financial outlook. The actual results of the Company's operations will likely vary from the amounts set forth in these projections and such variations may be material. Readers are cautioned that any such financial outlook and future oriented financial information contains herein should not be used for purposes other than those for which it is disclosed herein. Article content The forward-looking information and statements contained in this Press Release speak only as of the date of the document, and none of the Company or its subsidiaries assumes any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws. The reader is cautioned not to place undue reliance on forward-looking information. Article content CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION As at March 31, December 31 Unaudited (in thousands of Canadian dollars) 2025 2024 ASSETS Current Assets Cash and cash equivalents $ 2,016 $ 4,362 Trade and other receivables 224,259 82,769 Income tax receivable 151 – Inventory 43,244 49,546 Prepaid expenses and deposits 5,773 8,430 Assets held for sale 17,354 – 292,797 145,107 Property and equipment 388,224 402,419 Right-of-use assets 25,553 27,539 Intangible assets 1,021 1,159 Other assets 4,412 4,411 $ 712,007 $ 580,635 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Trade and other payables $ 171,718 $ 86,208 Current portion of lease obligations 9,455 9,726 Income tax payable 3,893 8,280 Current portion of other liabilities 4,206 5,538 189,272 109,752 Lease obligations 16,520 18,021 Other liabilities 8,850 8,652 Deferred tax liabilities 17,756 16,963 Loans and borrowings 86,701 56,721 319,099 210,109 Shareholders' equity Share capital 445,589 447,987 Contributed surplus 41,085 40,471 Accumulated other comprehensive income 26,650 26,635 Deficit (120,416 ) (144,567 ) 392,908 370,526 $ 712,007 $ 580,635 Article content CONDENSED CONSOLIDATED INTERIM STATEMENTS OF NET INCOME AND OTHER COMPREHENSIVE INCOME For the three months ended March 31, Unaudited (in thousands of Canadian dollars, except per share amounts) 2025 2024 Revenue $ 307,741 $ 320,146 Operating expenses 259,973 250,607 Gross profit 47,768 69,539 Selling, general and administrative expenses 11,923 11,504 Results from operating activities 35,845 58,035 Finance costs, net 1,978 2,909 Foreign exchange loss 402 2,317 Unrealized gain on derivatives (26 ) (1,983 ) Gain on disposal of property and equipment (734 ) (358 ) Amortization of intangible assets 138 10 Income before income tax 34,087 55,140 Income tax expense Current 9,152 12,890 Deferred 784 893 9,936 13,783 Net income 24,151 41,357 Other comprehensive income Foreign currency translation gain 15 5,020 Total comprehensive income $ 24,166 $ 46,377 Net income per share: Basic $ 0.34 $ 0.58 Diluted $ 0.33 $ 0.55 Article content CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS For the three months ended March 31, Unaudited (in thousands of Canadian dollars) 2025 2024 Operating activities: Net income $ 24,151 $ 41,357 Adjusted for the following: Depreciation and amortization 20,894 20,668 Share-based compensation expense 1,289 840 Unrealized foreign exchange loss 369 2,205 Unrealized gain on derivatives (26 ) (1,983 ) Gain on disposal of property and equipment (734 ) (358 ) Finance costs, net 1,978 2,909 Income tax expense 9,936 13,783 Income taxes paid (13,691 ) (9,417 ) Cash finance costs paid (1,582 ) (3,026 ) Funds flow from operations 42,584 66,978 Changes in non-cash working capital from operating activities (58,254 ) (56,736 ) Net cash (used in) provided by operating activities (15,670 ) 10,242 Investing activities: Purchase of property and equipment (16,167 ) (30,535 ) Proceeds from disposal of equipment and vehicles 506 12 Changes in non-cash working capital from investing activities 4,591 6,767 Net cash used in investing activities (11,070 ) (23,756 ) Financing activities: Issuance of loans and borrowings 29,609 25,770 Repayment of obligations under finance lease (2,488 ) (2,382 ) Common shares repurchased (2,738 ) (4,282 ) Net cash provided by financing activities 24,383 19,106 Impact of exchange rate changes on cash and cash equivalents 11 50 Increase (decrease) in cash and cash equivalents (2,346 ) 5,642 Cash and cash equivalents, beginning of the period 4,362 1,785 Cash and cash equivalents, end of the period $ 2,016 $ 7,427 Article content STEP will host a conference call on Thursday, May 15, 2025 at 9:00 a.m. MT to discuss the results for the first quarter. Article content You can also visit the Investors section of our website at and click on 'Reports, Presentations & Key Dates'. Article content To participate in the Q&A session, please call the conference call operator at: 1-800-717-1738 (toll free) 15 minutes prior to the call's start time and ask for 'STEP Energy Services First Quarter 2025 Earnings Results Conference Call'. Article content STEP is an energy services company that provides coiled tubing, fluid and nitrogen pumping and hydraulic fracturing solutions. Our combination of modern equipment along with our commitment to safety and quality execution has differentiated STEP in plays where wells are deeper, have longer laterals and higher pressures. STEP has a high-performance, safety-focused culture and its experienced technical office and field professionals are committed to providing innovative, reliable and cost-effective solutions to its clients. Article content Founded in 2011 as a specialized deep capacity coiled tubing company, STEP has grown into a North American service provider delivering completion and stimulation services to exploration and production ('E&P') companies in Canada and the U.S. Our Canadian services are focused in the Western Canadian Sedimentary Basin ('WCSB'), while in the U.S., our coiled tubing services are concentrated in the Permian and Eagle Ford in Texas, the Uinta-Piceance, and Niobrara-DJ basins in Colorado and the Bakken in North Dakota. Article content Article content Article content Article content Article content Contacts Article content For more information please contact: Steve Glanville President and Chief Executive Officer Telephone: 403-457-1772 Article content Klaas Deemter Chief Financial Officer Telephone: 403-457-1772 Article content Article content
Trade Arabia
08-05-2025
- Business
- Trade Arabia
Adnoc Drilling records $341m net profit in Q1
Adnoc Drilling has reported strong financial results for the first quarter of 2025, demonstrating its financial resilience and laying the foundation for another year of growth and success. Key first-quarter highlights include revenue of $1.17 billion, a 32% YoY increase, EBITDA of $533 million, and net profit of $341 million, a 24% YoY increase. Adnoc Drilling's growth momentum continues in 2025, driven by sustained demand for its services, strategic investments in fleet expansion, integrated services, artificial intelligence (AI), advanced technologies, and international expansion. Abdulrahman Abdulla Al Seiari, Adnoc Drilling CEO, said: 'The first quarter of 2025 has been more than just a strong start for Adnoc Drilling, it has demonstrated our financial resilience and laid the foundation for another year of significant growth. We are progressing at pace on our strategic priorities, expanding our rig fleet, scaling our oilfield services offering and advancing our AI and digital capabilities. 'As we secure new contracts and expand into strategic markets, our scale and commitment to innovation continue to enhance efficiency and performance across the business. With a robust revenue pipeline, sustained demand, growing international interest and unparalleled visibility of future earnings, Adnoc Drilling is well positioned to deliver sustainable growth and value for our shareholders. We remain committed to playing a leading role in the advancement of energy services in our domestic market and beyond.' Onshore revenue increased 20% YoY to $494 million, mainly due to new rigs commencing operations and a $30 million contribution from the unconventional business. Offshore revenue increased 2% YoY to $334 million, mainly due to higher activity island rigs. Oilfield Services revenue increased 134% YoY to $342 million, mainly driven by $122 million in revenue from the unconventional business, coupled with increased integrated drilling services (IDS) activity and provision of more discrete services. The Board of Directors approved dividends to be paid quarterly, with the first quarterly payment of $217 million expected to be paid on or around May 28, 2025. Additional dividends may be approved at the Board of Directors' discretion after considering free cash flow accretive growth opportunities. Adnoc Drilling's growth is underpinned by its bold innovation strategy, executed through its two next-generation joint ventures: Enersol and Turnwell. Enersol, Adnoc Drilling's advanced energy technology platform, successfully completed the acquisition of DWS, further scaling its portfolio of AI-driven, performance-enhancing technologies that power smarter, more sustainable drilling solutions. Turnwell, Adnoc Drilling's joint venture with SLB and Patterson UTI, has delivered a step-change in UAE unconventional energy development, achieving a significant reduction in well delivery times through the deployment of DrillOps™, Advisory, and Neuro advanced AI and digital tools. Adnoc Drilling is expanding its operational reach beyond the United Arab Emirates (UAE) through pre-qualification and ongoing tenders in Oman and Kuwait, both strategic and key growth markets with strong and increasing demand for world-class drilling and energy services. These new frontiers offer diversified revenue streams and reinforce Adnoc Drilling's leading position across the region. As Adnoc Drilling accelerates its growth and continues to scale, 2025 is set to be a pivotal year, defined by innovation, international growth, and strong shareholder returns. The Company's previously announced full year 2025 and medium-term guidance remains unchanged, supported by recent contract awards.
