National Energy Services Reunited Q3 revenue tops estimates on service line activity
NESR•National Energy Services Reunited reported Q3 revenue of $504.70 million, up 71% year over year and above estimates, while adjusted EPS of $0.38 beat expectations. The company declared a $0.10-per-share cash dividend for Q3.
1. Quarterly results
Q3 revenue was $504.70 million, compared with analyst estimates of $495.93 million, and adjusted EPS was $0.38 versus estimates of $0.35. Adjusted net income was $39.60 million, above estimates of $36.20 million, while adjusted EBITDA of $95.90 million missed estimates of $98.17 million.
2. Activity and outlook
The company said changes in revenue and net income were primarily due to activity in hydraulic fracturing, well testing and wireline logging. It maintained 100% operational presence across all units despite regional conflict, and said negative free cash flow was mainly due to increased working capital requirements and higher capital expenditures. The company said refinancing provides greater financial flexibility and liquidity for expansion, and expects a new lithium extraction project to unlock growth in decarbonization applications.
3. Dividend
The company declared a $0.10-per-share cash dividend for Q3.
