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TSX symbol “BRY”
Edmonton, Alberta, May 13 2021 / CNW /- Bri-Chem Corp. (“Bri-Chem” or “Company”) (TSX:BRY), a North American oilfield chemical distribution and blending company, is pleased to announce its financial results for the first quarter of 2021.
|
Ended three months |
|||||||
|
March 31 |
change |
||||||
|
(With “000” as the unit, except for the amount per share) |
2021 |
2020 year |
$ |
% |
|||
|
Financial Performance |
|||||||
|
Sales volume |
$ |
11,490 |
$ |
21,415 |
$ |
(9,925) |
(46%) |
|
Adjusted EBITDA(1) |
851 |
383 |
468 |
122% |
|||
|
As a percentage of revenue |
7% |
2% |
|||||
|
Adjusted operating income |
559 |
294 |
265 |
90% |
|||
|
Adjusted net income/(loss) (1) |
154 |
(470) |
624 |
(133%) |
|||
|
Net income/(loss) |
$ |
141 |
$ |
(470) |
$ |
611 |
twenty three% |
|
Diluted per share |
|||||||
|
Adjusted EBITDA |
$ |
0.03 |
$ |
0.02 |
$ |
0.02 |
101% |
|
Adjusted net (loss)/income |
0.01 |
$ |
(0.02) |
$ |
0.03 |
(130%) |
|
|
Net income/(loss) |
$ |
0.01 |
$ |
(0.02) |
$ |
0.02 |
(127%) |
|
Financial status |
|||||||
|
Total assets |
$ |
27,737 |
$ |
46,284 |
$ |
(18,547) |
(40%) |
|
Working capital |
9,888 |
15,637 |
(5,749) |
(37%) |
|||
|
Long-term debt |
7,216 |
7,983 |
(767) |
(10%) |
|||
|
Shareholders’ equity |
$ |
10,529 |
$ |
16,593 |
$ |
(6,064) |
(37%) |
The main highlights of the first quarter of 2021 include:
- Consolidated sales as of three months March 31, 2021 Yes $11.5 million, A 46% decrease compared to the same period last year due to the poor performance of the company’s fluid distribution department Canada with United States Due to the health impact of the ongoing novel coronavirus (“COVID-19”) pandemic, the entire industry is facing severe challenges, including the government’s response and economic restrictions imposed.
- Adjusted EBITDA for the first quarter is $ 851,000 relatively $ 383,000 By the first quarter of 2020, there will be an increase of 122% year-on-year. The increase is mainly related to cost-saving measures adopted by the management, a 20% salary reduction and government assistance programs.
- The adjusted operating income is $ 559,000 As of three months March 31, 2021 compare to $294 thousand A year-on-year increase of 90%.
- Diluted net income per share for the three months ended March 31, 2021 used to be $ 0.01 Net loss per share compared $0.02 Diluted earnings per share for the same period last year.
- Working capital, as of March 31, 2021, used to be US$9.9 million compared to $15.6 million in December 31, 2020, A reduction of 37%. The decrease is mainly related to the decline in inventory levels, as management has kept inventory reduced in response to COVID-19 and its impact on the demand for drilling fluids and related products.
Summary up to the month March 31, 2021:
Bri-Chem’s Canadian drilling fluid distribution division generated sales for the following businesses: 2.4 million USD Three months ending March 31, 2021 $3.8 million In the comparable period of 2020. The demand for drilling fluid products is driven by the current and future levels of capital drilling plans. Due to the ongoing impact of the novel coronavirus and due to market conditions, the plan was negatively affected in the first quarter of 2021 (“COVID-19”). Popularity includes government response and economic restrictions imposed.Number of wells drilled Western Canada The number of operating rigs in the first quarter of 2021 was 138, compared with 1,783 in the same period last year, a decrease of 34% (Source: Petroleum Services Association of Canada “PSAC”). This is a decrease of 29% compared to the first quarter of 2020 (source: Baker Hughes). Bri-Chem United States Sales revenue of drilling fluid distribution department US$4.7 million As of three months March 31, 2021 compare to $12.5 million Compared with the same period in 2020, it has dropped by 63%.The reason for the decrease is the decrease in customer demand, which is because the average number of active rigs in operation United States Fell to 405 March 31, 2021 From 784 at March 31, 2020.
Bri-Chem’s Canadian mixing and packaging division achieved sales of the following products: $1.7 million Decrease in the first quarter of 2021 1.2 million USD From sales US$2.9 million Comparable quarter of 2020. The reason for the decrease is due to the reduced demand for these services due to the COVID-19 pandemic and related government restrictions.U.S. mixed and packaged sales as of three months March 31, 2021 Yes USD 2.8 million compared to 2.2 million USD The same period in 2020 $ 543,000. The abandonment of wells in California remains consistent. This work is combined with the mass distribution of vaccines. United States The subsequent relaxation of restrictions on COVID-19 states resulted in an increase in revenue over the same period in 2020.
Adjusted operating income as of three months March 31, 2021 used to be $ 559,000 compared to $294 thousand same time last year.Adjusted EBITDA is $ 851,000 Compared with the first quarter of 2021 $ 383,000 The adjusted EBITDA as a percentage of sales for the first quarter of 2020 was 7%. The increase is mainly related to cost-saving measures adopted by the management, a 20% salary reduction and government assistance programs.
Appearance
As the distribution of vaccines and the lifting of economic restrictions continue to drive demand for energy, the world economy is regaining traction. In the case of tight producer budgets, the company’s ability to maintain disciplined capital expenditures and operating expenses will continue to prevent losses and maintain liquidity until drilling activities are further normalized. Although there are still uncertainties regarding the emergence of new COVID-19 variants and the timing of further lifting of economic and travel restrictions, the upward trajectory of crude oil prices in 2021 has exceeded the high achieved in 2020, encouraging management. Inducing producers to re-enter the market or increase their existing operational footprint will have a positive impact on the demand for drilling fluids before the second half of 2021. Canada And the United States.Canada and Canada’s federal stimulus package United States Given the expected growth in product demand and the company’s unique geographic footprint in the region, the federal government may have a favorable impact on the fluid mixing and packaging sector. United States Provide services for this type of work.
Stock option grant
Bri-Chem has granted the CFO of Bri-Chem the option to purchase up to 100,000 shares of common stock. The options are granted under Bri-Chem’s stock option plan for a period of three years, ten years from the date of grant.
About Bri-Chem
Through the combination of strategic acquisition and organic growth, Bri-Chem has become a leader in the wholesale distribution and mixing industry of wholesale drilling and completion, stimulation, production stimulation and production of chemical fluids in North America.We sell, mix, package and distribute various drilling fluid products in 25 warehouses throughout strategic locations Canada with United States. For more information about Bri-Chem, please visit: www.sedar.com Or on the Bri-Chem website www.brichem.com.
To receive Bri-Chem news updates, please send an email to ir@brichem.com.
Neither TSX nor its regulated service provider (as the term is defined in TSX’s policy) assumes any responsibility for the adequacy or accuracy of this press release.
Source: Bri-Chem Corp.
View original content: http://www.newswire.ca/en/releases/archive/May2021/13/c9947.html
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