Forum Energy Technologies, Inc. (FET), headquartered in Houston, Texas, reported significant financial developments in its 10-Q filing for the third quarter of 2024. The company, which operates in the oil, natural gas, industrial, and renewable energy sectors, experienced a revenue increase of 15.9% for the three months ended September 30, 2024, totaling $207.8 million, compared to $179.3 million in the same period of 2023. For the nine months ended September 30, 2024, revenue reached $615.4 million, an 11.2% increase from $553.7 million in the prior year.
The growth in revenue was driven primarily by the Artificial Lift and Downhole segment, which saw a 39.5% increase in revenue, largely attributed to the Variperm acquisition completed in January 2024. This acquisition contributed $27.4 million in revenue and $6.1 million in net income from January to September 2024. Conversely, the Drilling and Completions segment reported a slight decline in revenue, down 4.3% year-over-year, impacted by decreases in several product lines.
Despite the revenue growth, FET reported a net loss of $14.8 million for the third quarter of 2024, a significant decline from a net income of $8.0 million in the same quarter of 2023. For the nine-month period, the net loss expanded to $31.8 million, compared to a loss of $2.1 million in the previous year. This downturn in profitability was influenced by increased interest expenses, which rose to $7.7 million due to higher borrowings related to the Variperm acquisition.
Total assets as of September 30, 2024, increased to $973.7 million from $821.1 million at the end of 2023, driven by the acquisition and growth in accounts receivable. However, total liabilities also rose to $530.2 million, up from $408.4 million, reflecting increased borrowings under the credit facility and the Seller Term Loan.
FET's cash and cash equivalents decreased to $33.3 million from $46.2 million at the end of 2023. The company reported net cash provided by operating activities of $53.7 million for the nine months ended September 30, 2024, a significant improvement compared to net cash used in operations of $3.1 million in the same period of 2023.
In terms of strategic developments, FET amended its credit facility in October 2024, allowing for the issuance of $100 million in senior secured bonds due 2029, with proceeds intended to redeem outstanding 2025 Notes and repay borrowings under the Seller Term Loan. The company continues to focus on product development aimed at reducing costs and emissions for oil and gas operators while expanding its presence in renewable energy applications.
About FORUM ENERGY TECHNOLOGIES, INC.
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