Berry (bry)(BRY) Newsfile·2024-11-14 23:00Core Viewpoint - Bri-Chem Corp. reported a significant decline in financial performance for Q3 2024, primarily due to decreased US drilling activities and a lower average rig count, leading to reduced sales and earnings across its divisions [1][3][9]. Financial Performance - Consolidated sales for Q3 2024 were 26.83 million in Q3 2023, attributed to lower US drilling activity [2][5]. - Adjusted EBITDA for Q3 2024 was 1.051 million in the same period last year, with EBITDA as a percentage of revenue decreasing from 4% to 3% [2][8]. - Operating earnings for Q3 2024 were 1.185 million in Q3 2023 [2][4]. - The adjusted net loss per diluted share for Q3 2024 was 0.01 per diluted share in the same period last year [2][4]. Segment Performance - The Canadian drilling fluids distribution division generated sales of 3.9 million in Q3 2023, reflecting a slowdown in select commodity items [6]. - The US drilling fluids distribution division saw sales drop to 15.5 million in Q3 2023, a decrease of 24%, due to a decline in the US rig count [6]. - The Canadian blending and packaging division reported an increase in sales to 3.9 million in Q3 2023, driven by higher cementing and stimulation activities [7]. Financial Position - As of September 30, 2024, working capital was 16 million a year earlier, primarily due to an increase in accounts payable [5]. - Total assets decreased to 70.5 million, a decline of 19% year-over-year [2]. Industry Outlook - The oil and gas industry faces challenges such as volatile commodity prices and restrained growth in US drilling activity, with major companies focusing on returning cash to shareholders rather than increasing production [9]. - There is optimism for fiscal 2025, contingent on stabilized commodity prices and favorable drilling policies following recent US election results [9].