e Laboratories (US:CLB)2023-02-02 16:40Financial Data and Key Metrics Changes - For the full-year 2022, revenue was $490 million, increasing by more than 4% compared to 2021, but adversely impacted by currency devaluation of the Euro and British pound [12] - For Q4 2022, revenue from continuing operations was $127.6 million, up slightly from $126 million in the prior quarter, driven by growth in both U.S. and international markets [23] - EPS grew sequentially by 11% to $0.20 per share ex-items for Q4 2022 [13] Business Line Data and Key Metrics Changes - Reservoir Description revenue for Q4 2022 was just over $78 million, down slightly compared to Q3 [51] - Production Enhancement revenue was $49 million for Q4 2022, up 5% sequentially and up 10% year-over-year [69] - Service revenue for the full-year 2022 was $347 million, relatively flat compared to $344.3 million in 2021 [39] Market Data and Key Metrics Changes - The company experienced a sequential growth of 11% in the U.S. during Q4 2022, led by laboratory services and well diagnostic services [37] - International product sales for Q4 2022 were up 15% sequentially, although overall international revenue was adversely impacted by the Russia-Ukraine conflict [40][34] Company Strategy and Development Direction - The company aims to maximize free cash flow, maximize return on invested capital, and return excess free cash to shareholders [35] - The company plans to reorganize its corporate structure by redomesticating from the Netherlands to the U.S. to enhance long-term shareholder value [20] Management's Comments on Operating Environment and Future Outlook - The company anticipates crude oil demand for 2023 to increase by 1.9 million barrels per day, reaching a record 101.7 million barrels per day [60] - Management expects continued volatility in trading patterns due to the Russia-Ukraine conflict but believes that trading patterns will stabilize throughout 2023 [38] Other Important Information - The company reduced net debt by $11.7 million or 7% in Q4 2022, improving its leverage ratio to 2.29 from 2.42 [15][57] - Capital expenditures for 2023 are expected to be in the range of $12 million to $15 million, an increase from $10.2 million in 2022 [46] Q&A Session Summary Question: Insights on EOR and resource evaluation in the U.S. - Management highlighted the growing interest in CO2 injection for enhanced oil recovery (EOR) projects globally, indicating a shift in focus towards optimizing existing wells [75][102] Question: Anticipated demand for energetic products and frac activity - Management expects a rebound in frac activity throughout 2023, with energetic sales anticipated to be better than in 2022 [94][104] Question: Share buyback strategy - The company clarified that the recent share buyback was primarily to settle tax burdens for employees, with plans to resume open market buybacks as leverage ratios improve [99][112]