TETRA Technologies, Inc. reported a decline in revenue and profitability for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total revenues were $141.7 million, down 6.4% from $151.5 million in Q3 2023. Product sales increased slightly to $71.8 million from $69.0 million year-over-year. However, the company experienced a net loss of $3.0 million for the quarter, a significant drop from the net income of $5.4 million reported in the same quarter of the previous year.
For the nine months ended September 30, 2024, total revenues decreased to $464.6 million from $473.1 million in 2023, while net income attributable to TETRA stockholders fell sharply to $5.6 million from $29.7 million. The gross profit for the nine months also declined to $108.7 million, down 11.9% from $123.4 million in 2023.
The decrease in revenues was attributed to several factors, including seasonal impacts and operational disruptions caused by hurricanes affecting the Gulf of Mexico, which delayed project timelines. The Completion Fluids & Products Division saw a revenue increase of 0.8% year-over-year, while the Water & Flowback Services Division experienced a 4.5% decline due to weaker onshore activity in the U.S.
Strategically, TETRA has made significant investments in technology and secured contracts, including a multi-well completion fluids contract in Brazil and a project in the Gulf of Mexico expected to commence in Q1 2025. The company also entered a Memorandum of Understanding with Saltwerx for potential bromine and lithium production from the Evergreen Brine Unit, indicating a focus on expanding its low-carbon energy market presence.
Financially, TETRA's cash and cash equivalents decreased to $48.4 million as of September 30, 2024, from $52.5 million at the end of 2023. The company reported total assets of $501.2 million, up from $479.0 million at the end of the previous year, driven by increased property, plant, and equipment investments. Long-term debt rose to $179.7 million from $157.5 million, reflecting new borrowings under a Term Credit Agreement established in January 2024.
Overall, TETRA Technologies is navigating a challenging market environment while pursuing strategic initiatives to enhance its operational capabilities and market position.
About TETRA TECHNOLOGIES INC
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