- Q4 2023 Financial Metrics (In million):
- Revenue:
US$ 86.6 m (+2% YoY) - EBITDA:
US$ 18.7 m (+9% YoY from Q4 2022) - EBITDA as % of Revenue: 21.6% (up from 20.2% in Q4 2022)
- Net Debt Reduction:
US$ 65.2 m at year-end 2023 compared toUS$ 76.2 m at year-end 2022
- Revenue:
- Full Year 2023 Financial Metrics (In million):
- Revenue:
US$ 370.1 m (+12% YoY) - EBITDA:
US$ 86.7 m (+30% YoY) - Net Profit:
US$ 33 .9 m (9.2% of Revenue, +32% YoY) - Order backlog at year-end to be executed in 2024:
US$ 236.1 m compared toUS$ 217.4 m last year (+9%) - Proposed Dividend of
C$0.06 per share
- Revenue:
Income Statement
(In thousands of US$) | Three-month period | Year | |||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
Revenue | 86,590 | 84,903 | 370,093 | 330,555 | |||||||
Gross profit (1) | 19,918 | 18,479 | 93,862 | 71,272 | |||||||
As a percentage of sales | 23.0 % | 21.8 % | 25.4 % | 21.6 % | |||||||
EBITDA | 18,726 | 17,126 | 86,671 | 66,544 | |||||||
As a percentage of sales | 21.6 % | 20.2 % | 23.4 % | 20.1 % | |||||||
Operating profit | 13,469 | 12,002 | 66,708 | 46,384 | |||||||
As a percentage of sales | 15.6 % | 14.1 % | 18.0 % | 14.0 % | |||||||
Net profit for the period before one-off refinancing costs | 7,230 | 6,687 | 38,652 | 25,780 | |||||||
Net profit for the period | 2,494 | 6,687 | 33,916 | 25,780 | |||||||
Attributable to: | |||||||||||
Equity holders of the Company | 2,415 | 6,523 | 28,714 | 19,761 | |||||||
Non-controlling interests | 79 | 164 | 5,202 | 6,019 | |||||||
EPS (in US cents) | |||||||||||
Basic | 2.45 | 6.61 | 29.07 | 20.01 | |||||||
Diluted | 2.41 | 6.48 | 28.57 | 19.59 | |||||||
(1) This line item includes amortization and depreciation expenses related to operations |
Highlights – Q4 2023
Revenue
- In Q4 2023,
Foraco's revenue wasUS$ 86.6 million compared toUS$ 84.9 million generated in Q4 2022, a 2% increase.
Profitability
- Q4 2023 gross margin, including depreciation within cost of sales, was
US$ 19.9 million (representing 23.0% of revenue), compared toUS$ 18.5 million (or 21.8% of revenue) recorded in Q4 2022. The uplift was driven by the satisfactory performance of contracts. - For the quarter, EBITDA totaled
US$ 18.7 million (or 21.6% of revenue), from theUS$ 17.1 million (or 20.2% of revenue) for the corresponding quarter of the previous year.
Balance Sheet
- On
November 8, 2023 , the Company undertook an early redemption of its US-dollar-denominated senior bonds. They were originally issued in 2021 with a maturity date set forDecember 2025 . In line with this redemption, the Company entered into two separate financing agreements: Desjardins inCanada , providingC$76 million with a 10% annual repayment and a maturity of 3.5 years reschedulable over 6 further years. Caisse d'Epargne (Natixis Group ) inFrance , offering €30 million with €22.5 million to be amortized over the next four years and a final payment of €7.5 million in 2028. This refinancing reduces the Company's interest expense, modify the debt maturity profile, and implement a back-ended amortization schedule. Concurrently, an additional liquidity line ofC$15 million has been secured with Desjardins.
Highlights – FY 2023
Revenue
- For the year ending
December 31, 2023 , the revenue amounted toUS$ 370.1 million , representing a 12% increase over theUS$330.6 million recorded in FY 2022. This rise in revenue is due to the solid performance of main contracts and the delivery of more-added drilling services.
Profitability
- In FY 2023, the gross margin, inclusive of depreciation within cost of sales, was
US$ 93.9 million (or 25.4% of revenue), a significant 32% increase fromUS$ 71.3 million (or 21.6% of revenue) in FY 2022. This increase resulted from good contract performance, improved selling prices, and the delivery of more value-added drilling services. - During FY 2023, EBITDA amounted to
US$ 86.7 million (or 23.4% of revenue), a 30% increase fromUS$ 66.5 million (or 20.1% of revenue) for FY 2022. - The Free Cash Flow of the year was
US$29.1 million compared toUS$ 17.4 million in FY 2022.
Net debt
- As of
December 31, 2023 , the net debt, accounting for the impact of IFRS 16, stood atUS$ 65.2 million , reflecting a notable reduction fromUS$ 76.2 million as ofDecember 31, 2022 . - Our Net debt to EBITDA ratio at year-end 2023 is 0.75 versus 1.15 at year-end 2022.
Financial results
Revenue
(In thousands of US$) - (unaudited) | Q4 2023 | % change | Q4 2022 | FY 2023 | % change | FY 2022 |
Reporting segment | ||||||
Mining | 75,877 | 2 % | 74,235 | 321,697 | 13 % | 286,065 |
Water | 10,713 | - | 10,668 | 48,395 | 9 % | 44,490 |
Total revenue | 86,590 | 2 % | 84,903 | 370,093 | 12 % | 330,555 |
Geographic region | ||||||
26,123 | -8 % | 28,277 | 119,188 | 14 % | 104,345 | |
31,796 | 8 % | 29,543 | 131,884 | 26 % | 104,640 | |
16,261 | 17 % | 13,954 | 68,439 | 28 % | 53,295 | |
12,411 | -6 % | 13,130 | 50,582 | -26 % | 68,275 | |
Total revenue | 86,590 | 2 % | 84,903 | 370,093 | 12 % | 330,555 |
Q4 2023
The solid revenue was driven by the continued performance of main contracts and the provision of value-added drilling services which more than compensated for the decline in activity in certain regions. The rig utilization rate for Q4 2023 held steady at 55%, marginally up from 54% in Q4 2022, with underlying disparities across regions, CIS reporting lower rates, and other regions witnessing higher utilization.
North American operations reported a
South American revenue increased to
In the
Revenue for the EMEA region saw a 6% decrease, moving down to
FY 2023
The uptick in revenue for the Mining and Water segments can be attributed to favorable market dynamics, with the Company having renegotiated and extended its long-term rolling contracts since the previous year. Coupled with the Company's proven capacity to deliver, this has generated significant growth.
North American operations saw a 14% surge in activity, with revenues climbing to
In
In the
In the EMEA region, revenue for FY 2023 amounted to
Gross profit
(In thousands of US$) - (unaudited) | Q4 2023 | % change | Q4 2022 | FY 2023 | % change | FY 2022 |
Reporting segment | ||||||
Mining | 17,567 | 8 % | 16,214 | 81,220 | 36 % | 59,963 |
Water | 2,351 | 4 % | 2,265 | 12,642 | 12 % | 11,309 |
Total gross profit / (loss) | 19,918 | 8 % | 18,479 | 93,862 | 32 % | 71,272 |
Q4 2023
For Q4 2023, the gross margin, inclusive of depreciation within cost of sales, reached
FY 2023
In FY 2023, the gross margin, inclusive of depreciation within the cost of sales, rose to
Selling, General and Administrative Expenses
(In thousands of US$) - (unaudited) | Q4 2023 | % change | Q4 2022 | FY 2023 | % change | FY 2022 | |||
Selling, general and administrative expenses | 6,449 | 0 % | 6,477 | 27,154 | 9 % | 24,888 |
Q4 2023
SG&A was stable compared to the same quarter last year. As a percentage of revenue, SG&A remained stable at 7.4% of the revenue.
FY 2023
SG&A increased compared to the same period last year mainly due to the level of activity. As a percentage of revenue, SG&A decreased from 7.5% in FY 2022 to 7.3% in FY 2023.
Operating result
(In thousands of US$) - (unaudited) | Q4 2023 | % change | Q4 2022 | FY 2023 | % change | FY 2022 | |
Reporting segment | |||||||
Mining | 12,112 | 15 % | 10,551 | 57,830 | 51 % | 38,409 | |
Water | 1,357 | -6 % | 1,451 | 8,879 | 11 % | 7,975 | |
Total operating profit / (loss) | 13,469 | 12 % | 12,002 | 66,708 | 44 % | 46,384 | |
Q4 2023
The operating profit was
FY 2023
The operating profit reached
Financial position
The following table provides a summary of the Company's cash flows for FY 2023 and FY 2022:
(In thousands of US$) | FY 2023 | FY 2022 |
Cash generated by operations before working capital requirements | 86,671 | 66,543 |
Working capital requirements | (5,038) | (9,745) |
Income tax paid | (12,194) | (9,302 |
Purchase of equipment in cash | (26,135) | (20,042) |
Free Cash Flow before debt servicing | 43,304 | 27,454 |
Proceeds from / (repayment of) debt net of issuance costs | (20,434) | (7,932) |
Interests paid | (14,224) | (10,068) |
Acquisition of treasury shares | (1,475) | (1,032) |
Dividends paid to non-controlling interests | (2,035) | (1,714) |
Net cash generated / (used in) financing activities | (38,168) | (20,746) |
Net cash variation | 5,136 | (6,709) |
Foreign exchange differences | (256) | (1,224) |
Variation in cash and cash equivalents | 4,880 | 5,485 |
Cash and cash equivalents at the end of the period | 34,289 | 29,409 |
In FY 2023, the cash generated from operations before working capital requirements amounted to
During the same period, the working capital requirements was
During the period, Capex totaled
As at
As at
The Net debt to EBITDA ratio as at
Bank guarantees as at
Strategy
The Company's strategy is to assist its customers in exploring or managing their deposits throughout the entire cycle, with a special focus on the life of mines extension activity. The Company intends to continue developing and growing its services across the world with a focus on stable jurisdictions, high tech drilling services, optimal commodities mix including battery metals and gold - with a significant presence in water related drilling services - and a gradual implementation of advanced digital applications. The Company expects to execute its strategy primarily through organic growth and targeted acquisitions.
The Company addressed the environmental, social and governance (ESG) requirements, and implements a pragmatic and measurable approach to ESG with quantitative KPIs to maximize improvement and efficiencies.
Currency exchange rates.
The exchange rates for the periods under review are provided in the Management's Discussion and Analysis of Q4 2023.
Non-IFRS measures
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 because it 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 to be 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 payable related to acquisitions, net of cash and cash equivalents.
Reconciliation of the EBITDA is as follows:
(In thousands of US$) (unaudited) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | ||||||
Operating profit / (loss) | 13,469 | 12,002 | 66,708 | 46,384 | ||||||
Depreciation expense | 5,156 | 5,034 | 19,591 | 19,830 | ||||||
Non-cash employee share-based compensation | 102 | 90 | 372 | 330 | ||||||
EBITDA | 18,726 | 17,126 | 86,671 | 66,544 |
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Caution concerning forward-looking statements
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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