Edmonton, Alberta--(Newsfile Corp. - February 18, 2026) - Bri-Chem Corp. (TSX: BRY) ("Bri-Chem" or "Company"), a leading North American oilfield chemical distribution and blending company, is pleased to announce that it has entered into and have ratified a formal supply agreement with Reliant Technologies Inc. ("Reliant") effective February 17, 2026 ("Agreement").Reliant Technologies Inc. is substantially owned by Mr. Barry Hugghins, Chief Executive Officer, President and Executive Chairman of the Board of ...

Core Insights - The Global Oilfield Chemicals Market is projected to grow at a CAGR of 5.31% from 2024 to 2031, increasing from USD 25.18 Billion in 2024 to USD 38.09 Billion by 2031 [1][8] Market Size & Forecasts - The market is expected to experience significant growth driven by the rising demand for Enhanced Oil Recovery (EOR) methods, which rely on chemicals like surfactants and polymers [8] - The report provides detailed analysis of current market trends and projections for the next decade [7] Regional Insights - North America is the leading region in the Oilfield Chemicals Market, supported by extensive oil and gas exploration, particularly in the U.S. shale industry [14] - The region's advanced drilling technology and substantial investments in EOR contribute to the demand for specialized chemicals [14] Competitive Landscape - Key players in the market include Akzo Nobel N.V., Albemarle Corporation, Ashland Inc., Baker Hughes Incorporated, BASF SE, Canadian Energy Solutions, Clariant, Croda International Plc., and Drilling Specialties Company [15] Technological Innovations - Innovations in shale gas extraction, such as hydraulic fracturing and horizontal drilling, are driving the demand for specialized chemicals [10] - The focus on sustainable drilling solutions is leading to a shift towards environmentally friendly and biodegradable chemicals [9] Growth Opportunities - The market is poised for growth in sectors focused on sustainability-driven innovations, as companies seek to minimize environmental impacts [9] - The increasing emphasis on improved oil recovery methods presents substantial development prospects for producers catering to oil and gas operators [8]

Leadership Changes - Bri-Chem Corp. appointed Mr. Barry Hugghins as Chief Executive Officer and President effective November 10, 2025, while he will also continue as Executive Chairman of the Board [2] - Mr. Hugghins will receive a nominal salary of one dollar ($1) per annum, reflecting the company's commitment to business results and shareholder value [2] - The Board of Directors has eliminated cash retainers, with directors now compensated exclusively through equity-based incentives to enhance long-term shareholder value [2] Company Overview - Bri-Chem is a leading North American oilfield chemical distribution and blending company, recognized for its strategic acquisitions and organic growth [3] - The company operates 23 strategically located warehouses across Canada and the United States, offering a full range of drilling fluid products [3]

Core Points - Bri-Chem Corp. has rescheduled its annual general meeting to September 16, 2025, to allow for additional resolutions and provide shareholders with adequate information regarding alternative director nominees [1][2] - The company has adopted an Advance Notice By-Law to guide the nomination of directors, which establishes deadlines for shareholders to submit nominations and outlines the required information [3][6] Company Actions - The postponement of the meeting aims to include a resolution for the ratification of the Advance Notice By-Law and to inform shareholders about a proxy contest involving alternative nominees proposed by the Hugghins Group [2][5] - The Advance Notice By-Law requires shareholders to provide timely notice for director nominations, with specific deadlines based on the type of meeting [6][7] Company Overview - Bri-Chem is a leading North American oilfield chemical distribution and blending company, known for its strategic acquisitions and organic growth [8]

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]

Core Viewpoint - Bri-Chem Corp. reported a significant decline in financial performance for the fourth quarter and the full year of 2024, primarily due to decreased US drilling activity and a lower average rig count, leading to reduced sales and increased losses [1][5][11]. Financial Performance Summary - Consolidated sales for Q4 2024 were $20.6 million, a decrease of 23% from $26.8 million in Q4 2023 [5][7]. - Adjusted EBITDA for Q4 2024 was negative $1.2 million, down from $1.9 million in Q4 2023, reflecting a decrease of $3.1 million [10][19]. - The operating loss for Q4 2024 was $1.5 million, compared to operating earnings of $1 million in the same period last year [10]. - The net loss for Q4 2024 was $1.6 million, compared to net earnings of $467,000 in Q4 2023, marking a 440% decline [5][19]. Yearly Financial Overview - For the full year 2024, consolidated sales totaled $83.1 million, a decrease of 22% from $106.0 million in 2023 [5]. - Adjusted net loss for the year was $5.1 million, compared to adjusted net earnings of $1.4 million in 2023, representing a 476% decline [5][19]. - Total assets decreased by 15% to $58.2 million from $68.4 million in 2023 [6]. Segment Performance - Canadian drilling fluids distribution sales were $2 million in Q4 2024, down from $3.9 million in Q4 2023, attributed to slowing sales of select commodity items [8]. - US drilling fluids distribution sales were $12 million in Q4 2024, a decrease of 26% from $16.1 million in Q4 2023, linked to a decline in the US rig count [8]. - Canadian blending and packaging division saw a slight increase in sales to $4.7 million in Q4 2024 from $4.4 million in Q4 2023, driven by higher cementing and stimulation activities [9]. Working Capital and Debt - Working capital as of December 31, 2024, was $4.5 million, a decrease of 72% from $15.9 million in 2023, due to a change in loan classification [6]. - Long-term debt was eliminated, with the company reporting no long-term debt as of December 31, 2024 [6]. Industry Outlook - The oil and gas industry faces challenges from volatile commodity prices and restrained growth in North American drilling activity [11]. - Potential changes in US and Canadian government policies, including tariffs on Canadian crude oil, create uncertainty for the industry [11]. - The company aims to remain adaptable and seek new opportunities while monitoring market conditions closely [11].