KLX Energy Services Holdings, Inc. (KLXE) reported significant financial challenges in its latest 10-Q filing for the third quarter of 2024, reflecting a downturn in revenue and profitability compared to the same period in 2023. For the three months ended September 30, 2024, the company generated revenues of $188.9 million, a decrease of 14.4% from $220.6 million in Q3 2023. The decline was attributed to lower industry activity and pricing, with reduced weighted average prices contributing approximately 47% and lower volumes accounting for 53% of the revenue drop.
Operating income for Q3 2024 fell sharply to $1.1 million, down 93.3% from $16.4 million in the prior year. The company reported a net loss of $8.2 million for the quarter, compared to a net income of $7.6 million in Q3 2023. For the nine months ended September 30, 2024, total revenues were $543.8 million, down 21.7% from $694.2 million in the same period of 2023, with a net loss of $38.4 million compared to a net income of $28.4 million in the previous year.
The company's total assets decreased to $486.8 million as of September 30, 2024, from $539.8 million at the end of 2023. Current liabilities increased to $205.1 million, while long-term debt decreased to $235.2 million. Total stockholders’ equity saw a significant decline, dropping to $2.5 million from $38.8 million at the end of 2023.
KLXE's revenue by service offering for Q3 2024 showed declines across all segments: Drilling revenues fell to $39.4 million, Completion to $101.5 million, Production to $30.4 million, and Intervention to $17.6 million. The Rocky Mountains and Southwest segments experienced revenue decreases of 11.8%, while the Northeast/Mid-Con segment saw a 20.4% decline.
In terms of strategic developments, KLXE completed the acquisition of Greene’s Energy Group, LLC on March 8, 2023, for $1.1 million, enhancing its frac rental and flowback services. The integration of Greene's was finalized in Q3 2023, contributing to a bargain purchase gain in the financial statements.
The company is focused on improving liquidity and managing capital expenditures, with total capital expenditures for the nine months ended September 30, 2024, amounting to $49.8 million, up from $44.3 million in the same period of 2023. KLXE is also navigating ongoing volatility in commodity prices and inflation, which are impacting its financial results.
About KLX Energy Services Holdings, Inc.
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