Bri-Chem Announces 2025 First Quarter Financial Results

Core Insights - Bri-Chem Corp. reported a decrease in consolidated sales for Q1 2025, totaling $19.9 million, down 7% from $21.3 million in Q1 2024, primarily due to lower US drilling activity [4][6][10] - The company achieved an adjusted EBITDA of $465,000, a significant improvement from a loss of $443,000 in the same period last year, indicating a recovery in operational performance [2][9] - The outlook for the remainder of 2025 remains cautious due to volatility in commodity prices and political uncertainties affecting drilling activities in North America [10][12] Financial Performance - Sales for Q1 2025 were $19.9 million, a decrease of $1.4 million (7%) compared to Q1 2024 [4][6] - Adjusted EBITDA increased by $908,000 year-over-year, reflecting a positive shift in operational efficiency [2][6] - The net loss for Q1 2025 was $412,000, a 73% improvement from a net loss of $1.5 million in Q1 2024 [2][6] Segment Performance - Canadian drilling fluids distribution generated sales of $2.7 million, consistent with the prior year, while US drilling fluids sales decreased by 15% to $10.8 million [5][8] - The Canadian blending and packaging division saw a slight decrease in sales to $4.4 million, while US blending and packaging sales increased to $2.0 million, up from $1.4 million [8] - The average number of active operating land rigs in Canada increased by approximately 3% to 214, while the US rig count decreased by about 5% to 572 [5][7] Financial Position - Total assets decreased by 18% to $54.2 million, and working capital fell by 29% to $10.3 million as of March 31, 2025 [2][6] - Long-term debt slightly decreased by 3% to $6.5 million, while shareholders' equity declined by 13% to $19.0 million [2][6] Market Outlook - The company anticipates continued volatility in commodity prices and a restrained pace of new drilling activity, influenced by political and regulatory uncertainties in both the US and Canada [10][12] - There are emerging signals of potential collaboration on energy independence in Canada, which could lead to accelerated approvals for domestic projects [11][12] - The company remains focused on capital discipline, operational efficiency, and monitoring macroeconomic trends to navigate the transitional period in the industry [12]