Core Laboratories stock posts Q3 growth as profit stays under pressure

Core Laboratories reported mixed third-quarter results on October 28, with revenue improving from the previous quarter while profitability remained below the year-earlier level. The figures were published by PR Newswire.

Revenue improves sequentially

Third-quarter revenue reached 132.1 million US dollars, up 6 percent from the second quarter but down 1.8 percent from the same period a year earlier. Operating income was 12.1 million US dollars, compared with 20.9 million US dollars a year earlier, while diluted GAAP earnings per share came in at 0.12 US dollars versus 0.30 US dollars.

Core Laboratories reported adjusted operating income of 12.6 million US dollars and adjusted earnings per share of 0.16 US dollars. The company also generated 1.7 million US dollars in free cash flow and repurchased 87,873 shares for approximately 1.1 million US dollars.

International demand shapes outlook

Reservoir Description revenue rose 7 percent sequentially to 84.3 million US dollars, supported by stronger international laboratory demand. Production Enhancement revenue increased 4 percent sequentially to 47.8 million US dollars, helped by product sales in the United States and international markets.

For the fourth quarter, Core Laboratories expects revenue between 128.5 million and 134.5 million US dollars and earnings per share between 0.12 and 0.20 US dollars. Management expects revenue to remain broadly flat sequentially, citing Middle East disruptions and normal seasonal moderation in US land completion activity.

Global reservoir services specialist

Core Laboratories provides reservoir description and production enhancement services and products for oil and gas operators. Its activities include laboratory analysis, reservoir characterization, completion diagnostics and technologies designed to improve production, with operations spanning more than 50 countries. The company also supplies specialized laboratory instruments for the petroleum industry.

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