Bri-Chem Corp. Reports 2024 Financial Results: Sales and Earnings Decrease
Edmonton, Alberta – Bri-Chem Corp. (TSX: BRY), a major North American oilfield chemical distribution and blending company, released its financial results for the year and fourth quarter ending December 31, 2024. The company reported a decrease in sales and earnings compared to the previous year.
Financial Performance
For the three months ended December 31, 2024, Bri-Chem reported sales of $20,618,000, a 23% decrease from $26,775,000 in the same period in 2023. Adjusted EBITDA for the quarter was $1,174,000, a 161% increase from the $3,112,000 loss in the same period in 2023. However, as a percentage of revenue, adjusted EBITDA margin decreased from 7% to 6%.
For the twelve months ended December 31, 2024, sales were $83,072,000, a 22% decrease from $106,035,000 in the same period in 2023. Adjusted EBITDA for the year was $6,576,000, a 105% increase from the $6,900,000 earned in 2023. Adjusted net earnings for the year were $1,364,000, a 467% increase from the $6,485,000 loss in 2023. As a percentage of revenue, adjusted EBITDA margin decreased from 7% to 6%, while adjusted net earnings margin increased from a loss of 6% to 1.6%.
Operating Results
Operating loss for the three months ended December 31, 2024, was $1,525,000, a 248% increase from the $1,034,000 earnings in the same period in 2023. Operating loss for the twelve months ended December 31, 2024, was $4,731,000, an 117% increase from the $5,547,000 earnings in 2023.
Financial Position
Total assets at December 31, 2024, were $58,166,000, a 15% decrease from $68,372,000 at December 31, 2023. Working capital decreased by 72% to $4,459,000 from $15,927,000. Long-term debt remained at $6,731,000, while shareholders equity decreased by 13% to $19,608,000 from $22,542,000.
Impact on Shareholders and the World
The decrease in sales, earnings, and financial position may negatively impact Bri-Chem’s shareholders, as the company’s stock price may decrease in response to the financial results. Additionally, the company may need to take measures to improve its financial performance, such as cost-cutting measures or restructuring.
On a larger scale, the decrease in sales and earnings for Bri-Chem may indicate a larger trend in the oil and gas industry. Lower demand for oil and gas products due to economic and environmental factors, as well as increased competition, may be contributing to the decrease in sales and earnings for Bri-Chem and other companies in the industry.
Conclusion
Bri-Chem Corp. reported a decrease in sales, earnings, and financial position for the year and fourth quarter ended December 31, 2024. The decrease in sales and earnings may negatively impact the company’s shareholders, and the larger trend in the oil and gas industry may be contributing to the decrease in sales and earnings for Bri-Chem and other companies in the industry.
- Bri-Chem reported a decrease in sales, earnings, and financial position for Q4 and FY 2024.
- The decrease in sales and earnings may negatively impact the company’s shareholders.
- A larger trend in the oil and gas industry may be contributing to the decrease in sales and earnings for Bri-Chem and other companies.
