KLNG - Earnings call transcript Q2 2024 | Koil Energy Solutions, Inc.

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Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Koil Energy's Second Quarter 2024 Conference Call. [Operator Instructions]

As a reminder, this call is being recorded today, Monday, August 5, 2024. to release forward-looking filed issued SEC. related in is with disclaimer press the Monday detailed Koil statements Energy's included the A morning and is koilenergy.com company's It on request. upon website, available also or the

on the which non-GAAP reliance of made. on place the the in release included measures A speak are of today's and cautioned date reconciliation is on financial call release undue statements, only Listeners the as these used press forward-looking and website. press to in not

obligation revise after any no forward-looking undertakes to reflect circumstances its also or statements the Energy Koil to of events made. date

I'd to time, this call At Wiik. like over Erik to CEO, ahead. the go Please turn

Erik Wiik

quarter thank underway briefing, all overview performance growth an drive and morning, joining us. on second Koil's our you the strategic update I'll and to trajectory. you initiatives present In today's of Good the for in

a Following growth. answer the view comprehensive more analysis my of market our your is current for will situation Koil Trevor financial provide happy of to Subsequently, we'll how be positioned review, I'll provide questions. performance. our Afterwards, and further

reduced which represent XX% from to EBITDA holding shift the share XX%. quarter performance, year, to over achieved underpinned while earnings mainly from QX, a XX% months execution. by revitalizing per quarter this XX%. the also margin second a another higher $X.XX from of gross to to increased of We're marked yet loss of year, profit will Gross X exemplary margin we diluted reporting and a doubled adjusted revenue and a strong shareholders. and EBITDA the proactive outstanding due benefit SG&A. first by year-over-year that grew growth We revenue the almost a steady strategy Compared advancements, Sequentially, and our last of improved healthy margin

were of multimillion installation system. well-proven a technology. engineering, second major safety contract the we quarter, dollar Koil's manufacturing, and a for This testing subsea During contract includes awarded control procurement,

clients, team's our facility. project product will is testament thrilled well undertake project schedule. a and on earned We're as also have stands achievements us offshore to to enhance of solutions. our integrated this in contract currently their The This allowing of to developing safety trust the underway that the

our quarters. results the have We're we made pleased during the last and progress with X

Our Koil's growth to continues performance year. on to drive this strategies significant X strategy set with key progress business accomplish our out

focus of spending requests our by existing our Firstly, upselling products opportunities additional bundling by followed quotations Typically multiple purchase project, now services. the on share has orders from same accounts per key for our see several we project. deepening revealed and for

Secondly, by consistently leveraging solutions, our and the lead we both have decreased costs unit times. standardized product further the

time. rating newly lead -- design now its market and instance, with become short designed renowned PSI the XX,XXX has For MQC the robust our plate, redesigned for pressure in

for growing Thirdly, re-termination focused demand the response includes our maintenance which the successfully has brownfield of umbilicals. services boosted streams, our to revenue subsea

approach Finally, our off. clients paying is abroad the following current to

second we and during performed in quarter. the America Africa instance, For South work

projects, being in Our of by made and of small on domestic forming international overseas a our accounts possible in with position partnerships key is their company pursuit markets markets. the necessitates working these the

operate combined is to planning us growth much operational higher at Our a level. improved strategy, allowing with

] to planning implemented projects and we project maximizing new contributing all have align throughput. ensure a departments and to production execution We approach forecasting our subsequently to [

are we maturity as results are upside impressive, confident drive journey. there continue further recent is that to our the growth While in we

our program we growth. without service to grown extensive focus year-over-year have the of product instance, our to opportunities pursue therefore, tripled overall not as service a product revenue. have an opportunity. review For We service We're, on this our a while identify see compromising revenue great portfolio we undergo and launching

the impressive service dedication hiring and delivering This passion these technicians. thank capital in supporting employees want to initiative to I and clients will be of results. our their our accompanied additional investment targeted for by

overview, Finance, that I'll of with our the now And turn Vice call over Ashurst. Trevor to President

Trevor Ashurst

Erik. you, Thank

minute take review our a We will results. quarter second to now

the months revenues reflects represents of generated This June improvement activity. X X ended . Gross revenues million, increase second $X.X XX, price XXXX, was this we in mainly increase the I XX, June XXXX. revenues recognizing quarter Koil compared was This represents in $X.X improvement mentioned XX% associated just past with to increase product-oriented for X% in $X.X generated the million a during higher and revenues project this million profit second XX% margin of a quarter For in ended or compared XX% of Energy quarter. XXXX when of which in revenues months for gross of when relative the to or of the fixed year-over-year $X.X margin revenues million XXXX. an gross

expenses decrease was administrative were of increased million costs project and lower and million increased compared The to sales $X.X XXXX. XX% cost general labor by driven to Selling, XXXX our in QX allocations to activity. in support R&D QX $X.X

profit reported increase to share. down gross a of revenue the per project the in increase million earnings by is compared share of net associated $XXX,XXX loss of and This second activity. the to or loss $X.XX for comparative bottom line. XXXX, approximately The was diluted quarter, $X income Moving net for $X.XX QX improvement to generating in price with company per a which fixed the driven translates

Moving sheet. to balance

having in capital million million cash which XX, working of as receivables. December of in million which Our This in XXXX, of and includes of year. of $X.X million this XX in million in net $X capital June compared included is cash $X.X capital, structure as million $X.X and composed net working receivables $X.X to $X.X is

building working in dip balance capital a some quarter, second our funds end. deployed towards led quarter at We which the cash in

of some working this has to converted been cash. capital However, since

have currently morning, in million free $X.X of cash and the over a this for positive As little year. cash flow we are

second the summary quarter. financial our for concludes This

the I you Erik. for your call turn thank over So will now to time. back

Erik Wiik

Trevor. Thank you,

by of project questions, your increasing view enhancements across Demand long-cycle growth. is the services operators' situation and our take such the production positioned developments market. how tieback. further we and demand global the been current and market provide This subsea has offshore driven I'll is as our Koil for products for Before

partially Although capital consolidation. discipline market ongoing offset and by

years. developments escalating increasingly investments our are to the replace deepwater clients, to in production over the fulfilling from world's role energy They According the that subsea needed anticipate an in reservoirs. natural producing will decline play needs coming currently vital

Mexico, Operator an the seems subsea basins North business. Sea. to most our Africa America, identified and oil Gulf reservoirs time the typical for resilient targeting as the gas increasingly be South and of is optimal This in such

and very range diverse installers, clients, ahead. subsea growth. EPC positioned profile drive compact further our service wealth is our therefore we operators, a a to opportunities to Koil well Given foresee of of and companies

barrier please solutions conclude, offer me high with preeminent We also a offshore gas opportunity We mission-critical that producing. Koil. service market position we Before and perform to the present projects. to renewable wells grant in oil a services keep deepwater in compelling entry. investing a for to We're case customers energy

strong is Koil foundation. fast-growing a a company with

That my would team second We the and have half remarkable concludes like debt. results. prepared our delivering entire for today. full to to gratitude quarter remarks no such Again, Koil first express long-term I

operator to take the call investor will questions. to the back I turn So

Operator

you. Thank

Mr. I'd We to like question-and-answer Wiik back will session. [Operator remarks. to closing question-and-answer turn now Instructions]. That over the for begin the concludes session. conference our

Erik Wiik

appreciate and very in participating right. much, All call. operator, you all Thank I you our

If you information and our page the any we you have on find questions, the filings have will web all that also submitted.

also directly you Trevor questions. have further if or You myself contact may

much. very you thank So

Operator

thank all and sir, presentation. you, Thank you attending for today's

You and may have now your disconnect wonderful lines, day. a

Koil Energy Solutions (KLNG) 5 Aug 242024 Q2 Earnings call transcript