Foraco International reports Q3 2024
TORONTO, Ontario and MARSEILLE, France, Oct. 30, 2024 /CNW/ - Foraco International SA (TSX:FAR) ("Foraco" or the "Company"), a leading global provider of drilling services, is pleased to announce its results for the third quarter ended September 30, 2024. All amounts are denominated in US Dollars (US$) unless otherwise stated.
Q3 2024 Highlights:
Revenue:
Q3 2024 revenue totaled US$77.7 million, down from a record US$95.1 million in Q3 2023.
For the second consecutive quarter, two main regions achieved record performance. More specifically:
North America delivered US$35.8 million (+ 11% compared to Q3 2023)
Asia-Pacific (Australia) delivered US$24.7 million (+27% compared to Q3 2023)
Revenue increased by 2% primarily driven by tier-one clients notwithstanding a drop in demand from juniors customers, amounting to US$14.3 million and the strategic exit from the Russian market, which accounted for US$4.9 million.
Profitability:
EBITDA for Q3 2024 was US$16.1 million, or 20.8% of revenue, compared to US$25.0 million, or 26.3% of revenue, in Q3 2023. Most projects generated solid operating performance.
Net profit for the period was US$7.7 million representing 10% of revenue.
Tim Bremner, CEO of Foraco, commented, "The market drivers for drilling services remain strong led by the global demand for copper, related EV transition metals and gold. However, challenges persist amid current economic uncertainty, financing challenges for Juniors, and geopolitical risks. In this context, we continue to benefit from our strategic positioning in key markets across North America and Australia with long-term contracts, innovation capabilities and robust relationships with tier-one clients. Our leadership in the water services sector further enhances our competitive advantage. Thanks to these core strengths, I am pleased to report that , excluding the impact of the temporary decrease in activity with Juniors and our strategic exit from the Russian market, our revenue has grown by 2% over last year's record revenue."
Fabien Sevestre, CFO of Foraco, added, "During the quarter, we maintained solid financial metrics, with a 22.0% gross margin after depreciation, a 20.8% EBITDA margin and a 10.0% net profit margin. We optimized our operational workforce as needed and reduced our SG&A expenses. The increase in working capital requirements for the first nine months of the year is linked to supporting growth in North America and Australia. Additionally, we achieved a significant reduction in net financial expenses compared to the same period last year. Looking forward, we will maintain our focus on cost control and debt reduction."
Income Statement
(In thousands of US$)(unaudited)
Three-month period ended September 30,
Nine-month period ended September 30,
2024
2023
2024
2023
Revenue
77,656
95,060
232,629
283,503
Gross profit (1)
17,066
26,863
51,794
73,944
As a percentage of sales
22.0 %
28.3 %
22.3 %
26.1 %
EBITDA
16,142
25,002
50,106
67,945
As a percentage of sales
20.8 %
26.3 %
21.5 %
24.0 %
Operating profit
11,682
20,169
36,422
53,239
As a percentage of sales
15.0 %
21.2 %
15.7 %
18.8 %
Net profit for the period
7,733
12,366
24,007
31,421
Attributable to:
Equity holders of the Company
7,844
10,848
24,451
26,298
Non-controlling interests
(111)
1,518
(444)
5,123
