CLB - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Core Lab Q1 2022 Earnings Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference to Larry Bruno, Chairman and CEO. Please go ahead.

Larry Bruno

Thanks, Anthony. Americas; and in Pacific. good the the Africa in East; Middle evening morning good Europe, afternoon and Good in Asia like Core of importantly, all Earnings to analysts We'd most and Call. our our First Laboratories' shareholders, to Quarter XXXX employees, welcome I'm Core's Financial This Gwen joined Officer; Head and Chris Vice Senior Core's President by of and Hill, morning, Chief Gresham, Investor Relations. divided into X be segments. will call The start making remarks by statements. will Gwen forward-looking regarding performance. some opening factors comments, including review high-level important QX have a of of Core's then We'll

In strategies to tenets long-term then addition, Core's regarding that the overview shareholder will shareholder financial we'll the three comments financial review and Chris have detailed company build give additional value. and employs a value.

now two Gwen on technologies the progress to statements. some comments we'll as a our Q&A will some successful and worldwide. well as highlighting and I'll Then the the Core's operations discussing Chris, the guidance. projects and provide Lab's on segments, phones review Core forward-looking for operating deployment for of major continued remarks detailing turn outlook Following and Core's introduction call open company's of session. I'll Gwen then over

Gwen Gresham

and include we well update us no AFM. morning, during SEC reports registration any information, we undertake statements are to and company's of as materially obligation differ the the types the that the discussed XX-K forward-looking annual or a that statements this uncertainties whether These on forward-looking in cause revise of other are result our uncertainties that We new to our and as risks recent This from report and could estimates by and statements. publicly forward-looking a Before with These events future most Form or otherwise. statements statements filed the some subject risks any start call of mention forward-looking as I'll discussion of other this conference actual number may results information. projections, include make would business to of outlook.

included press Our comparable non-GAAP announcing be the said, measures first back in our that Larry. our to measures. most website. With also measures financial include Non-GAAP also Reconciliation pass the discussion release to the can directly on found results. comments is GAAP financial I'll quarter

Larry Bruno

Gwen. Thanks,

XXXX the landscape. business pandemic impact As to continued global began, our

caseloads the the sharply first in compared employees more for all COVID-XX to During QX a increase Core in quarter, and across Core both than very Lab XXX% variant tested This staff spread XX% Lab's operations. our our than as global QX, impacted More rose internal Omicron XXXX. among regions. global clients of in cases positive

other government-imposed to horsepower, had meaningful meet incurred and equipment quarantine on that direct In On Lab a staff that Lab of and to sharp expenses lines. XX or addition, associated Core had because overtime shutdowns. because positive project costs rates say, more impact staff people rental quarantine the mechanical on runs cases individuals increased COVID-XX were tested operating among than, high staff the work. miss our employees of among as Core a number requirements day QX between business X infected either and exposure uninfected rise COVID-XX days of average, of time Being The has to cases in business.

Description, on our these service or challenges, to into for The to mild and and in QX. and Fortunately, oil countries, ready February reported realignment of is peaked largely of Core hospitalizations The the its crude no focused in other our trends Core rise, our cyber signaling assay operations surge Core as these impacted hydrocarbons a suspension Core to product illnesses services as have the is the duration Lab COVID-XX our January still military positive disruptions well crude March. crude that analysis. delever in continues oil to laboratory remains clients impacting the anticipate for might In Compounding negatively for and impacted when demand and several commenced, concern two, COVID-XX to by also further of condition future In organization; the safety. by: client in in activity pose throughout advancement. operations demand needs. not cases in Ukraine engagement been demand realign. as traditional for new conflict against were both patterns recent one, fully and key Production orders several supply introducing Lab's QX Ukraine oil lean service COVID-XX for suspended over at Enhancement, Europe. Eastern ongoing. headwinds Europe crude geographic cases, in years. fundamentally out In oilfield analytical three, if laboratory the staff rise attacks in Ukraine oil particularly and other sales Reservoir Because product demand The offerings global with sharp or for facilities sales declined military caused experienced QX objectives markets; forecasting challenges ambient halted. been patterns preceded impacted services short maintaining completed future Europe. business return of by Europe the deaths global is Still, company. least Western client be of Currently direct we Ukraine, has sanctions of demand employees' for logistical continued key After parts project clients' strategic next supply for and continues execute direct demand to previously Cases and in disrupted in product and Despite continuing altered, of impractical. crude work committed these in military actions segments.

increased first by Core X%. year-over-year of revenue Lab's XXXX, quarter the For

expectations both growth in international year-over-year the arenas, operations on the headwinds Russian For XXXX, collateral remainder we and continued the areas. most both in in those impact Core's improvement the European in pose of expect U.S. and although conflict business Ukraine now and to segments

always to relies by over service. our the employees resilient review served that latest has strategies review to call. XX-plus shareholders, Core used will shareholder as our on value leveraging history year interest The company. and talk publicly Now culture, traded Lab's clients problems the this Core a which build financial tenets to solve and Lab's well dedicated innovations section technology our of I'll of Core in be one more operational customer about and innovation, of

cash Core financial free navigate long-standing, and return and maximize we through While maximize cash being on invested shareholders. capital its the flow, to tenets, returning current pursue opportunities, growth X challenges remain excess will free our on long-term to focused those

to for challenges during them I continue required management QX on, I Core's the in all to as moment our we our Before a and their the employees navigate for X the financial more prepare years. review. the endured thank XXXX of it agility past meeting the and dedication, and adaptability needs the and serve for market. of have to thank for unprecedented we turn many responsiveness detailed also I'll team for Chris clients' great and personal of to move now needs. hard active want that work loyalty clients' want to sacrifices over

Chris Hill

Larry. Thanks,

FX last rate specifically quarter, for excluded financial gave the of gains and Before tax any the or our of effective on we we review an and calls losses assumed call XX%. guidance the past performance impact the

prior today current periods. accordingly, our exchange gain discussion So foreign or any excludes loss and for

efforts $XXX,XXX of items facility gain a from charge expense Core's included efficiencies for financial due for results consolidation noncash the XXXX include debt and ongoing clients facility first reached shares network. compensation with and are first financial for also severance with expense quarter The with charge performance million a operational stock optimize $X.X million of expense of employees associated the the global Ukraine. a results severance quarter of associated consolidation also associated eligible our retirement The future for who of $X.X the discussion bad age. from in the certain for been have Additionally, our and vesting their financial expenses excluded These have and to receivables results. of

was revenue year-over-year. quarter, the in in looking first approximately X.X% typical each the but income sequential million X.X% statement, year. first seasonal from quarter, prior we quarter in from of the associated at The with is that experienced continuing million up operations decline $XXX.X now decrease $XXX.X So the down

international also to a the direct quarter, expected strong negatively which quarter. operations into conflict both due the and disrupted resurgence cases impacted COVID progressed during The than sales Russia-Ukraine product Additionally, of our services. more first military were action during

up activity nicely the land completion and restrictions as was the declines, revenue, in with However, quarter, was international, last quarter. revenue is exited and U.S. improved at down more service but million from X% the $XX.X market associated continues approximately last quarter, show for began which activity service the decrease seasonal we regions. to Of lower typical many in and continued revenue, up than this quarter. The first levels strength, although also sequentially COVID primarily million is $XX.X disruptions year

up oil with Russia-Ukraine Service work, assay particularly year. the and $XX.X associated also tied activity, over quarter, Europe, of service revenue last Our the revenue. revenue service but from were and in elevated which impacted in the decline sequentially, an which down attacks in negatively increased offset by to partially conflict. XX% sequentially cyber level U.S. international sales, helped equally X% Product U.S. XX.X% crude is million international the was for

first orders, quarter, sales product which vary another. large not from several X orders in and we the quarter larger can quarter. international Last bulk are Our international to repeat did typically delivered

international which increased sales Product sequential sales As Ukraine. led a over sequentially XX.X% The the energetic were by into increased product in sales X% suspension the decline sales over products, X% also sequentially. result, of sequentially. was and down our product of includes U.S.

the offset So quarter, decrease U.S. the for international sales sales. in the the product sequential helped improvement product in

up ex-items has the quarter. of salaries. Moving temporary The most last fully from as the quarter the services during on in cost cost of restored reductions first XXXX of service revenue, to employee-based pandemic. company was approximately quarter increased the XX% XX% established for the Cost of of company restored services,

of for rate absorption labor in anticipated of discrete tax and million, G&A Cost to amortization continue pretty $XX.X over is recorded quarter The a sales. of flat in an with million. The by quarter. revenue million ex-items manufacturing last our combination quarter. remainder recorded earnings a So million, of the tax manufacturing million first surge the a items in with the efficiencies to benefit and quarter of GAAP year compared to as quarter, full last from and quarter. the recorded margin our basis, we rate somewhat to in $X and and million, is On unrepatriated last year, lower of XX% globe quarter the a We improve a tax the projected million base of on associated the improvement to from $XX the across will COVID, million withholding release the rising loss of includes incremental of expected of each sensitive quarter. G&A levels. the ex-items ex-items million Effective the in be $X.X tax Depreciation quarter for GAAP was which future $X.X we expense decrease of packaging $XXX,XXX. transportation, from materials, quarter, the product quarter quarter growth yielding line raw was subsidiary, the for operating to related ex-items to be for XXXX. disruptions expense in impact of the of geographic approximately quarters distributed Russian our $X.X ex-items are an last in the to mix quarter through the quarter. last Income was for historical foreseeable anticipate in tax $X.X costs. sales of quarter caused costs be a not manufacturing toward to future. the to down we flat margins and trend was for earnings would EBIT of increase basis, we was the and $X.X million $X.X Interest for benefit reduced progress revenue expect million was relatively compared $XX.X this EBIT XX% X%. $X.X

approximately the be down the from operations However, last the $X.X GAAP effective to we million, quarter. to the operations loss continuing -- on $X.X a for share $X.X diluted ex-items project operations continue from operations continuing share was and quarter. and diluted loss per $X.XX for the for continuing quarter recorded basis, was tax Income from million $X.XX quarter we continuing On from Earnings ex-items the GAAP XX%. a million was company's a from per rate for quarter.

Receivables balance the $X to sheet. $XX.X prior and the million were increased million Turning approximately from quarter.

return anticipate Our $XX.X last million future quarter the days, the lower approximately up for improve end. was year. $X March comparable quarter DSOs to days days DSO or in consistent which remained turns to from quarters. XX and We will X.X, last at first for is XX level a quarter achieved at that last Inventory XX Inventory XXXX, up were our million, quarter. XX, from of

As highlighted, experience transportation, and the cost previously packaging labor, in increasing to increase cost an the materials, of inventory. company continues which raw of are

Additionally, carrying orders this product the of supply will Suspension chain disruptions. already sales challenge which into were that inventory mitigate continue Ukraine require to the in for accounts also of persists, amount a of for larger to processed increase some quarter. help

side will improve XXXX, international both we balance in U.S. land improved the as We the the And through continue to activity and of line anticipate levels progress inventory turns sheet. now markets. liability with for

a debt first to from or the Our net considering long-term of $XXX $X was quarter. million $XX quarter cash and reduced debt was of million the million, decrease million $XXX last end of at

compared was million ratio million quarter, notes our well senior our started in reducing of last the is X.X bank to leverage facility. credit $XX comprised and X Lab currently Since as X.X of quarters, company's as last our leverage has at approximately Our outstanding COVID commitment revolving in our the Core focus debt reduced our the $XXX X XXXX, and ratio. debt stated net out maintaining pandemic under

to will company. strategy We with the our delever continue longer-term

cash at Looking flow.

was For first million cash million. for quarter flow XXXX, from and of quarter, $X.X the paying after for cash million activities was the $X.X our flow CapEx free of operating $X

activity capital be expenditures levels aligned XXXX. We the for of remainder with to managing continue will

metric beyond. We a remainder company's those our to on $XX continue generating initiatives. flow, at also we expenditures For free Lab another This the continue capital financial to yield the models important ability guidance cash we of growth as to will expenditures we to cash to over turn and shareholders comparing Core look positive the free for utilize expect million. generate discipline when projecting to cash for of discounted flow Core full and capital be to range flow Gwen for ahead year, update million free asset-light cash and strict assess capital XXXX are $XX model in and free primarily believe company's I'll results, quarter generated its an targeted evaluating and an particularly who now flow and marks it opportunities shareholders valuations. cash with where business outlook. positive is

Gwen Gresham

Thank you, Chris.

As oil crude have tighten approaching under XX% rig expanded, continues market demand Core fundamentals gradual and in prices oil for contract coming more Russia remain for commodity With industry in pre-COVID-XX the crude Core levels, oil geopolitical the on crude continues is reflected preparing consistent international growing a global crude the activity, count increase of on the of the in prices. oil active multiyear to driven exposed With conflict demand, and Russia-Ukraine segments elevated Lab a These in market and tightening XXXX. indicators the sanctions supply, capital higher with to oil oilfield oil sees of for projects. crude resulting by resulting equipment both an market. the commodity international having plans revenues spending cycle. are activity, in leading international business increase as expanded its these international with more than crude

cycle. benefiting we traded somewhat with Core studies America from long-cycle drilled development need rather activity, rock than development, rock events projects by rig correlated and a Wells revenue continue The provides Atlantic growth private in be focus beyond, changes be Description onshore event. and projects, opportunities field for larger stimulation the short- albeit subsequently participates East. international revenue North a both operators. or sampled immediate to segments reservoir both count. XXXX realize Latin operators reservoir with collected the and to discipline and in on before America to and publicly led can projects fluid by is completion before drilled increased with and margin, into fluid cored and stimulated Middle samples Core's additional reservoir particular and emerge, capital South moderated to completed, Reservoir and need have As characterization for of wells large-scale fluid and expansion

excludes of of $XXX For quarter approximately levels X%. million increasing losses the XXXX uncertainties offshore be improve, markets, by business and quarter revenue guidance U.S. the for for operating Russia-Ukraine to from million second income and to international, to the primarily levels to $X.XX. exchange. foreign range the $XXX of is million conflict. potentially in underlying The Core and of company's expected deepwater is projects associated Core in second $XX.X our projects quarter XXXX, based activity moderate and improvement from operations -- offset $X.XX second yielding with operating second XXXX million, quarter in XXXX gains on to margins projections $X.X and EPS to

assumes quarter also an XX%. effective guidance of second tax The rate

forward, a Looking in expected followed the that, the I'll outlook cycle fundamentals. remainder positive by further acceleration it the multiyear back we international half over anticipate to of remains for Furthermore, year. improvement continue the market Core's second XXXX supported unfolding, second by turn during With oil of to quarter, with Larry. crude sequential

Larry Bruno

Thanks, Gwen.

First, team The service of solutions, integrity our to providing the our visible our servicing and success. of during I'd employees Core Lab's is clients and very has to team's superior collective like the thank foundation been current clients. for dedication challenges to global innovative

Turning Description. first to Reservoir

QX of experiencing relatively although Pacific conflict, sharp COVID-XX of many high across during QX caseloads. sequentially. in Asia well Russia-Ukraine and the of For X%. in and with the $XX.X are first costs, tied $X.X cases increase Operating at ex-items quarter, part in income early along were quarter. and margins disruptions million, in million Europe as The impacted Restoration down costs as the was COVID-related the parts revenue X% came operating the still the to employee slowed margins inefficiencies regions,

operations As Russia been associated previously mentioned, Europe Ukraine in sanctions. Core and suspended military some and the conflict demand are Lab being in for the have by and impacted services

look that the ahead, we North and project while harbinger and as we East growing for still of trend a beyond, will we a Reservoir America As particularly landscape the throughout improving an South well pre-COVID below Middle see play and in rig international levels, count out XXXX Description, regions.

multiyear, planned pleased opportunities first be on carbon programs. news, these capture address Core fronts. other of that experts quarter unconventional its on analysis was logs. cores KOC currently evaluation a prospective the challenges. focus leveraged upon quarter and conventional advanced The an concluded conducted reservoir Lab Core in core reservoir to visualization models multiwell and of as and prediction and first additional Lab image Lab and Core's for of Company. building to work. Oil geological Lab XXXX, An the well RAPID and techniques. This well technologies flow analytical study Core third-party services, log also workshop penetration of the to recently and of borehole sequestration program hydrocarbon recognition incorporating multiple data Core of Kuwait potential proprietary week-long included is and that stated database was allow platform is a KOC's assisting comprehensive Core and being teams workshop Lab well, the a its developed tight petrophysical great for large interpretation to interpretation In During success included technical conventional fields their utilizing was as the targets. petrophysical KOC that Oracle-based, proprietary data. Fracture were proprietary workshop culmination and organize scanner web-enabled, expanding was Core other dual-energy is CT conducted assessment calibration and technical include of that XD the fluid which productivity. reservoir pay expansion analysis on

initiation During with subsurface This to carbon geologic integrity rock Birol sequestration and the the University will and as reservoir joint focus Houston global as project announced consortium fluid-fluid risks of associated multi-company a challenges Dr. with capacity, capture Dindoruk and fluid of industry of a containment sequestration. well subsurface expertise in carbon collaboration quarter, first analyze with leverage Core's the Core and on injectivity compatibility. characterization in

CarbonNet Talos also pleased evaluation years Project Energy the is underground carbon carbon during capture sequestration these Core multiple would and risk strategic Inc. Core, Valley, capture a carbon into provide COX CarbonNet and it announce pipeline on bring appraisal any offshore Along the failing transporting storage substantial opportunities. core quarter, Bass Basin quarter advanced If and shared injecting Australia. with assurance to projects sites first a Victoria's Strait. opportunities, sequestration capture properly of offshore addition, XXXX, in the Latrobe the COX in during in to located deep together under via well project A in expertise the through fluids. direction to phase the was and targeted publicly of conventional complexities the Southeast alliance projects. for laboratory extracted of of In first media of flow recent and commenced evaluating COX the these porous and technical the sequestration essential successful, fluid with sequestration subsurface Gippsland of next Gular formation Project, Lab's pore the natural assess announcements on from geological testing geology for the is subsurface assessing in in-situ Core XX-plus types the

to down diagnostics strengths Production was margins XX% quarter at for customers sequentially, $XX.X and income operating their Core came both $X.X well Enhancement XXXX. and Operating million, the Revenue up optimize XX% ex-items of in but helped were completion where moving completions. from Enhancement systems Production year-over-year. Now energetic Lab's X% first in million

whether perf into services aim diagnostic For system improve products The first allows expertise XX which combined Core's Leveraging company's specific to completions developed these innovator level, into restimulation time simultaneous been reveals Production treatment process. is Furthermore, them the introduction to product program Barnett stage-level a products and unique incorporates the diagnostic clients has to deploying energetic compared the Core's diagnostic introduce project recompletion Enhancement providing GoTrace diagnostic as Core's Lab industry-leading integration completion technology in products. into granularity that TotalEnergies Core's more when effectively an do the the By announce evaluating system proprietary to by perforating cluster Recently, at utilized Shale. energetic tracers perforating in more this of GoTrace directly alternatives. of evaluation a significantly allows with diagnostic diagnostic X team the TotalEnergies organically to our solution. cost analysis fields, questions. of system, diagnostic well Core GoTrace the participation, clusters confirmed is and the and effectively the tracers innovative, review. performance. with new perforating technology optimizing effectively clusters, Anthony treatment able an the That Core's created for pending GoTrace clusters years, X was monitor We and will GoTrace services, pleased than and Core's open GoTrace your call for operational the now to its Core's patent were determine stimulated, system thus in well concludes stimulated. better appreciate both in performance. were

Operator

Instructions] from first [Operator Gengaro Stifel. come question Stephen will with Our

Stephen Gengaro

year well. if for I growth international mid-teens, when a XXXX the with back about, integrated should macro, the honestly, seems probably in the RD you and is mind. that? we things you would about we as talking of don't about your And of large half business like think of the couple full of A of context what and you're the lot names -- How me, start in sort for service oil think it

Larry Bruno

question, Yes. Stephen. Good

maybe here. think around go world let's I the

asterisk we're in those line think I'll that an expectations, on I So now. put but with

the North our so U.S., planet, as so we America, outside no perspective. So around in the change for look

the I think So in ranges line broadly are industry. that the held with pretty around

little maybe a there. little Middle maybe change, a there. East, upside change, upside America, no South no

Russia, of international is would view this asterisk to market the change. it on Pacific, today. expectation Asia relates what based and put Europe. The on see Ukraine our point we no from as We'll have those to soften I

challenging all the So think it unlikely. up, growth now maybe double for becomes segment more digit add I when we and

Stephen Gengaro

can said And of in business amount some or you give us on doing Russia? And the that? or you're of how handling were kind have you color doing you're

Larry Bruno

Yes.

to said we've in has our X% historically of and business. what region, that Russia the X% near Russia is been So

Stephen Gengaro

Great. Okay.

Larry Bruno

Stephen, that. other sorry, on just one qualifier

see has areas -- nearby Russian anything, from think the and with not to up. down, Russia sanctions. because areas, is beyond we We the because demand work Ukraine So gone and there, coming reaching directly inching the not realign as if other region the this Europe the has realignment oil in probably of it's it oil in

we in demand to first drop off could so saw And crude a that pose, assay for we That it, realign. into the in Europe the call that work think has quarter. rebound oil a

Stephen Gengaro

to one them. you're of going of be That of my that's was sort to one follow-ups seeing what but offset, Okay. was

the as both And on sort first you're get of going quarters like that and you on you into margin the the that? of forward, just do visibility headwinds get in the margin Okay. seeing What's second away other incremental quarter. question, they in look the How or segments fade normal front front to third incrementals? and sort start the the and to driving start more what's albeit

Chris Hill

compensation. merit restored. forward coming retirement sort about think to looking are well. match you Well add as little restoring later plans, -- kind of through, we've -- if smaller and those this fully not that as this There's restored at XXX(k) think that bit is plans. adjustments annual now need year going is of base still confident not employees' whether Chris, They're Stephen. And of more we do that the or also we on feel make But We're back. a

employees So evaluating us. done, be we're to I back we've headwinds. that, think, some things are going to pay year the big full progresses, of behind But kind get the those are as that but

back. but you see improve, trend as start only see line margins, should we to start start to incremental not grow, So to top

in That's some not but talked real, globe. around the here U.S. about I just think we've inflation. the

more going some the than real. are services, costs up. the So it's It's of probably and impacted Enhancement Production group but our inventory

The changed. in and Production you line we But to in expand would nothing's really as So and as still efficiencies have. improve well. to that's expect the manufacturing our we some group still Reservoir top start of there headwinds Description things leverage Enhancement is

Stephen Gengaro

one you quick final just mentioned said this, one And changed. because you nothing's just there fundamentally,

with, So has business? the and in I of couple business with world anything competitively last the has the just international RD or sort changed RD -- the competitive of the way landscape your fundamentally all dealt issues years evolved internationally COVID and we've the on

Larry Bruno

Steve, from activity it’s levels clients. all the on

pace I pushed on to think COVID the yes, So activity board have the been their right. may on played projects drawing that got

pick the places, particularly but there – things it’s up in activity operational seeing are We is the leverage RD of in business. still level. largely on an the side The

Operator

next Holt. from Pickering, will Our Zurcher & question Instructions] Tudor, [Operator with Taylor come

Taylor Zurcher

about question, forward. the Production Enhancement. curious path or path glide road margin I'm of First really just sort

there at the But some issues land an constructive half were the really year, from in play backdrop. completions activity QX. I in got operating here So last solidly in pretty back a mean, background, in digits you U.S. double were And income perspective. obviously, of the you've doing margin

So volumes inflation back quite year. exit exiting the the highlighted this half half year-over-year this But if to might year play. should look Enhancement over of the on nicely the at what and compare year, just And we that improving curious, of you dynamics that be XXXX for like Production Chris, a some XXXX second basis? the or

Chris Hill

Yes.

expand others products, at be can QX, side. still from little some I of on in services to still and think would say, higher just Production in that looking add, where first to to we sort XX% kind on would might the I of and stuff have they we're but Enhancement off a XX% expect bit then margins resetting margins

you been disruptions on the say, So in would where end if the QX. But of start manufacturing that did we year. have view of inflation, at the factor. to in, biggest kind might has We be you a dial I take can

going starts disruptions let's should there some we reoccur there But improvement QX those and to sort and improvement, should hopefully, don't be of don't see some that inflation say, there. stabilize, be forward, So continuing. in

Larry Bruno

for and to well our a did Production add sector. a had with to and business thanks outperformed across those strong Enhancement think, of sales. we quarter on the I'd last Part is year, there, how side year I can Taylor, the that here point lumpy. get that reinforcing the strong be a bit to -- fourth very We comments that, Chris' Yes. that international real try

we have a not that QX. repeat of in So did

quarter, quarters obviously, that this didn't product we for plus planned happen. in into that obviously first -- subsequent expect Ukraine, year were sales which the We had

to there's as We little points to And orders lumpiness bit have of I we're have Chris' QX. -- a in so international didn't think echo that natural ship. going there,

upcoming We the expect of quarters. them in some

at So the several I quarters. see you'll performance an over you -- the see we'll trend, look next think there if improving

Taylor Zurcher

But highlighted follow-up imagine I made Understood. the lot you simple progress made a on during far. what's And I you CCUS, is script of You've QX. thus progress a in next? some And the got which is my it's of question, just curious meaningful already revenues what's moving that working things to generate how some all we projects forward, speak. to next CCUS CCUS as time look and on forward? going might you're from some that on just take recognizing moving

Larry Bruno

Yes.

those clients than is clients past approaching the government oil call us landscape. Taylor, had gas on. core changed I now projects projects is going more of to to into say, think execution the thing And that over bit was is of those traditional it's what time evaluation analysis. been, so, program, it, refresh things maybe other a fluid came little on regulations working existed of last, when I'll It -- have and and this. carbon projects done it just XX changed nontraditional about their our of occasional decades. or One A portfolio couple are are audience -- years that's the the and some dialing couple that they many the for is over they're the in capture a we've up of driving be storage

study CCS oil and capture ago. several of all members have plans storage companies. our their not inaugural X years That into So would and the carbon any dialed are consortium had gas

So in for CCS of growing. Most is and the those planning base the still. the the client I oil across projects are industry phase across industry, think non-oil the

I'll queue. was months to start we're with we work that's for doing actually of target for our of to XX in say the well go what XXx CarbonNet proprietary probably those quarters. when There's X going And now Talos, ago. sort they're Project when As like taking do strategic into board assessment that our our samples. stride just set projects those consortium up it to several it, XX I on there the call that the is would been we're that and to very with that's study plus, our alliance phase, fluid core our hit more

Taylor Zurcher

just last the might really if but in encouraging. on technology That's GoTrace. I be can, One much out days, I sort of early market. question never me, for It heard have there about which is that

to if if I'm highlighted, you any you curious Total. just doing value of you there's to relates that So share outside a intriguing could little sounds us about work it. But you're you highlight conversations and would bit with it the sort customer technology like be with provides for other anecdotes that as an But add having might that, hear the curious technology of it can more Total? customers love

Larry Bruno

Yes.

how Lab-like like problems. run about talk the boy, about business drive Core you lot a of staff and that to motivates really we a So brainstorm example It to lot innovation. and, of our a

to level. – And I more completion call pump the it problem, better stage of you the would limitations with a won’t at in one problems put so is a in diagnostics way the probably tracers past it, is

And get so you granularity. not did the

As – the up, clusters. gone didn’t if whether stages individual know was the you number of have contributing, could stage tell know clusters you the didn’t you but and

level. some So at more how granularity get might better the that that prompted cluster look we at

to And so were that when survive we triggered could very we to as that get diagnostic gun the the tracers same and trying moment. we off destroy to that whether goes event our at had so out in place is tracers energetic energetic figure not to the

into place do here, the those same so time, industry, I time in first the there’s an And the opportunity the perforate energetics for that to mentioned perforations all at in as now simultaneously. and call the

time and to don’t and there see And they’re out into and well on the opportunity of rig are on to have this the so what then clients in the if that communication. seeing tracers down the perforate is come you saving pump perforations then

And an confidential. and And holding granularity the the there it quiet didn’t they’re you were it was and we pretty there’s getting. that reason about so hear advantage

does company the both that We’re only energetics and tracer diagnostics.

we’ve real a So got we feel there. competitive advantage like

the We’re lined where got, to a all capabilities position manufacturing analytical I now the client. call we’ve in just that capabilities will and service up getting it,

it the early promise. minutes we More industry. early on that, to call come introduction got it’s I’ll nothing in and of hours, think – There’s this. early great the yes, in like it So

Okay.

earnings slate anything this I full we think else have don’t got on we’ve a our morning, calls of pretty so call list.

continues international So operational beyond. in the XXXX client in and improving we’ll wrap the well here. both In leadership Core’s up U.S. to and for markets company activity position levels summary,

our and the or optimize We been reservoirs in sector. generating focused and invested the needs. global base operationally on will focused on never to technologically their company free client-focused have client to and address positioned most service cash better oilfield help their advanced, remain returns optimization capital. uniquely technologically We remain company evolving The reservoir are

In bring value introduction by its to penetration. opportunities. of our balance to our shareholders in addition to investing quarterly dividends, near will we’ll to driven new Core the term, both growth cash growth the always via while problem-solving technologies In free continue market sheet opportunities, use strengthen and

have a that that thanks the The our in possible. employees Board of these and results to So executive team made and closing, and worldwide the shareholders Lab. Laboratories our Core all analysts give special cover of we Core appreciate thank management

associated achievements. be We’re continuing their proud to with

update. time next thanks look So our spending for with we Good and us, bye forward to now. for

Operator

you conference Thank presentation. today's The for now has attending concluded.

may You disconnect. now

Core Laboratories (CLB) 28 Apr 222022 Q1 Earnings call transcript