Canada's Trican Q2 revenue slightly misses estimates on weather-related slowdown

Overview

• Canada oilfield services firm's Q2 revenue was flat yr/yr, slightly missing analyst expectations

• Adjusted EBITDA for Q2 declined sharply due to lower activity and margin compression

• Company returned C$18 mln to shareholders and raised quarterly dividend by 10%

Outlook

• Company expects competitive market conditions and pricing pressure to persist in the near term

• Trican sees constructive outlook supported by expanding LNG export capacity and resource play development

• Company expects new natural gas fueled fracturing fleet to be field ready in Q4 2026

Result Drivers

• SEASONAL ACTIVITY - Co said Q2 reflected a more typical spring break-up and wet weather, reducing activity compared to the prior year's unusually high demand

• PRICING PRESSURE COST INFLATION - Co reported ongoing pricing pressure and inflationary cost increases impacted operating expenses and compressed margins

• IRON HORSE ACQUISITION - Iron Horse contributed to scale but had a seasonally weaker Q2, further impacting consolidated profitability

Company press release: ID:nNFC4Wvxtn

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy."

• Wall Street's median 12-month price target for Trican Well Service Ltd is C$8.25, about 29.9% above its July 28 closing price of C$6.35

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• July 28 - NOV Inc Q2 revenue beats estimates, helped by offshore project strength

• July 27 - Baker Hughes posts smaller-than-expected Q2 revenue drop, tops profit estimates

• July 27 - Apollo Global to invest $1.5 billion in Keppel oil rig fund

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)