e Laboratories (US:CLB)2024-07-24 20:37Financial Performance - Core Laboratories reported Q2 2024 revenue of $130.6 million, with operating income of $16 million and diluted EPS of $0.19[7]. - Operating income, excluding specific items, was $16.4 million, yielding operating margins of 13%, an increase of over 100 basis points sequentially[7]. - Revenue for the six months ended June 30, 2024, was $260.2 million, a 1.6% increase from $256.2 million in 2023[23]. - Operating income decreased by 3.2% to $24.6 million compared to $25.4 million in the previous year[23]. - Net income attributable to Core Laboratories Inc. was $12.3 million, down 51.4% from $25.2 million in 2023[23]. - Diluted earnings per share (EPS) fell to $0.26, a decrease of 50.9% from $0.53 in the same period last year[23]. - Revenue for the three months ended June 30, 2024, was $130,577 million, representing a 0.7% increase from Q1 2024 and a 2.1% increase from Q2 2023[43]. - Operating income increased by 86.8% to $16,008 million compared to $8,571 million in Q1 2024, but decreased by 15.3% from $18,906 million in Q2 2023[43]. - Net income for the period was $9,190 million, a 163.3% increase from $3,490 million in Q1 2024, but a 59.9% decrease from $22,929 million in Q2 2023[43]. - Diluted earnings per share attributable to Core Laboratories Inc. was $0.19, up 171.4% from $0.07 in Q1 2024, but down 60.4% from $0.48 in Q2 2023[43]. Segment Performance - The Reservoir Description segment generated $86.3 million in revenue, up 2% sequentially and 3% year-over-year, marking six consecutive quarters of growth[8]. - Production Enhancement operations reported Q2 2024 revenue of $44.3 million, flat year-over-year, with operating income of $4.4 million[10]. - Reservoir Description segment revenue increased by 4.2% to $170.5 million, while Production Enhancement revenue decreased by 3.2% to $89.7 million[23]. - The company projects third quarter 2024 revenue for Reservoir Description to range from $86.5 million to $89.5 million[37]. Cash Flow and Debt - Free cash flow for the second quarter of 2024 was $14.3 million, with net debt reduced by $15.8 million[28]. - Net cash provided by operating activities for the six months ended June 30, 2024, was $22,676 million, indicating robust cash flow generation capabilities[49]. - As of June 30, 2024, Core's net debt was $132.3 million, reduced by $15.8 million during the quarter, with a leverage ratio of 1.66[12]. Market Outlook - Core anticipates a soft market for U.S. onshore activity for the remainder of the year, but expects growth in international and offshore services to offset declines[16]. - Core Laboratories anticipates sustainable client activity growth in international upstream projects, driven by rising crude-oil demand[36]. Equity and Assets - Total assets as of June 30, 2024, were $597.8 million, an increase of 1.7% from the previous quarter[1]. - Total equity increased to $245.7 million, reflecting a 3.5% growth compared to the prior quarter[1]. Dividends and Tax - The company declared a cash dividend of $0.01 per share, payable on August 26, 2024[13]. - The effective tax rate for the third quarter 2024 guidance is assumed to be 20%[38]. - The effective tax rate for the period was 28%, compared to 32% in Q1 2024 and a negative 46% in Q2 2023[43]. Return on Investment - Return on Invested Capital (ROIC) as of June 30, 2024, was reported at 8.0%[26].