Revenue up 24% - EBITDA up 67%
"The first quarter of 2022 was another successful step for
"During the quarter we improved our profitability, thanks to the strong performance of our operations. We also achieved to pass the increased labour and operational costs onto selling prices during the renegotiation of most of our long-term contracts. Our operational performance translates into the continuing improvement of our key profitability indicators. Q1 2022 EBITDA reached
Revenue
- Revenue for Q1 2022 amounted to
US$ 67.7 million compared toUS$ 54.6 million in Q1 2021, an increase of 24%. - Rig utilization rate was 53% in Q1 2022 compared to 48% in Q1 2021.
Profitability
- Q1 2022 gross margin including depreciation within cost of sales was
US$ 9.6 million (or 14.1% of revenue) compared toUS$ 6.1 million (or 11.1% of revenue) in Q1 2021, an increase of 58%. - Ongoing contracts reported solid performances. Increased costs were passed on most of the new selling prices upon the renewal and the renegotiation of long term contracts.
- During the quarter, EBITDA amounted to
US$ 8.6 million (or 12.6% of revenue), compared toUS$ 5.1 million (or 9.4% of revenue) for the same quarter last year, an increase of 67 %.
Income Statement
(In thousands of US$) | Three-month period ended | ||||
2022 | 2021 | ||||
Revenue | 67,740 | 54,551 | |||
Gross profit / (loss) (1) | 9,560 | 6,061 | |||
As a percentage of sales | 14.1% | 11.1% | |||
EBITDA | 8,527 | 5,114 | |||
As a percentage of sales | 12.6% | 9.4% | |||
Operating profit / (loss) | 3,609 | 803 | |||
As a percentage of sales | 5.3% | 1.5% | |||
Profit / (loss) for the period | 778 | (965) | |||
Attributable to: | |||||
Equity holders of the Company | 428 | (995) | |||
Non-controlling interests | 350 | 30 | |||
EPS (in US cents) | |||||
Basic | 0.43 | (1.11) | |||
Diluted | 0.42 | (1.11) |
(1) | includes amortization and depreciation expenses related to operations. |
Revenue
(In thousands of US$) - (unaudited) | Q1 2022 | % change | Q1 2021 |
Reporting segment | |||
Mining............................................... | 59,350 | 32% | 45,102 |
Water................................................ | 8,390 | -11% | 9,449 |
Total revenue..................................... | 67,740 | 24% | 54,551 |
Geographic region | |||
21,600 | 16% | 18,635 | |
15,168 | -19% | 18,828 | |
20,698 | 116% | 9,580 | |
10,274 | 37% | 7,508 | |
Total revenue..................................... | 67,740 | 24% | 54,551 |
Revenue for the quarter increased from
The increase in revenue in the Mining segment is the result of the favorable market dynamics with long-term rolling contracts started in 2021 and the capacity of the Company to deliver. The water activity decreased by 11% mainly due to the phasing of contracts compared to last year.
Activity in
In EMEA, revenue for the quarter was
Revenue in
In
Gross Profit
(In thousands of US$) - (unaudited) | Q1 2022 | % change | Q1 2021 | |
Reporting segment | ||||
Mining............................................... | 7,715 | 62% | 4,752 | |
Water................................................ | 1,845 | 43% | 1,289 | |
Total gross profit ................................ | 9,560 | 58% | 6,061 |
The Q1 2022 gross margin including depreciation within cost of sales was
Selling, General and Administrative Expenses
(In thousands of US$) - (unaudited) | Q1 2022 | % change | Q1 2021 |
Selling, general and administrative expenses | 5,951 | 14% | 5,238 |
SG&A increased compared to the same quarter last year mainly due to the level of activity. As a percentage of revenue, SG&A decreased from 9.6% in Q1 2021 to 8.8% in Q1 2022.
Operating result
(In thousands of US$) - (unaudited) | Q1 2022 | % change | Q1 2021 | |
Reporting segment | ||||
Mining ................................................................... | 2,501 | n/a | 421 | |
Water.................................................................... | 1,108 | n/a | 382 | |
Total operating profit (loss) ....................................... | 3,609 | n/a | 803 | |
The operating profit was
The following table provides a summary of the Company's cash flows for Q1 2022 and Q1 2021:
(In thousands of US$) | Q1 2022 | Q1 2021 | |
Cash generated by operations before working capital requirements | 8,527 | 5,114 | |
Working capital requirements | (12,615) | (7,655) | |
Income tax paid | (2,586) | (1,240) | |
Purchase of equipment in cash | (5,235) | (4,418) | |
Free Cash Flow before debt servicing | (11,910) | (8,199) | |
Debt variance | 5,422 | 3,906 | |
Interests paid | (2,365) | (534) | |
Acquisition of treasury shares | (313) | (154) | |
Dividends paid to non-controlling interests | - | - | |
Net cash generated / (used in) financing activities | 2,745 | 3,218 | |
Net cash variation | (9,165) | (4,881) | |
Foreign exchange differences | 232 | 329 | |
Variation in cash and cash equivalents | (8,933) | (4,653) | |
Cash and cash equivalents at the end of the period | 14,991 | 16,310 |
In Q1 2022, the cash generated from operations before working capital requirements amounted to
In Q1 2022, the working capital requirement was
During the period, Capex totaled
As at
Credit lines | 7,661 |
Long-term debt | |
Within one year | 7,437 |
Between 1 and 2 years | 10,216 |
Between 2 and 3 years | 9,919 |
Between 3 and 4 years | 74,464 |
Total | 109,696 |
As at
As at
Bank guarantees as at
Covid 19
The Company continues to report improved key profitability indicators compared to pre-Covid-19 activity in the context of favourable market conditions. While the Company believes that the worst of the impacts of Covid-19 on the business have been felt, there remains a level of uncertainty.
Impairment testing
As at
Based on the current activity trend, the Company considers that there is no triggering event which would justify an impairment testing as at
The exchange rates for the periods under review are provided in the Management's Discussion and Analysis of Q1 2022
EBITDA represents Net income before interest expense, income taxes, depreciation, amortization and non-cash share based compensation expenses. EBITDA is a non-IFRS quantitative measure used to assist in the assessment of the Company's ability to generate cash from its operations. The Company believes that the presentation of EBITDA is useful to investors as this is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the drilling industry. EBITDA is not defined in IFRS and should not be considered as an alternative to Profit for the period or Operating profit or any other financial metric required by such accounting principles.
Net debt corresponds to the current and non-current portions of borrowings and the consideration of payables related to acquisitions, net of cash and cash equivalents. The lease obligations are included in the net debt calculation.
Reconciliation of EBITDA is as follows:
(In thousands of US$) (unaudited) | Q1 2022 | Q1 2021 | ||||||
Operating profit / (loss).............................................. | 3,609 | 803 | ||||||
Depreciation expense ................................................ | 4,848 | 4,261 | ||||||
Non-cash employee share-based compensation.................... | 70 | 50 | ||||||
EBITDA ............................................................... | 8,527 | 5,114 |
On
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This document may contain "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws. These statements and information include estimates, forecasts, information and statements as to Management's expectations with respect to, among other things, the future financial or operating performance of the Company and capital and operating expenditures. Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereon or similar terminology. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" in the Company's Annual Information Form dated
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