STEP Energy Services Ltd. closed 2024 with a $1.76 million net income, well below the $50.41 million reported for 2023. However, the company said in a media release that its consolidated revenue ($955 million) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) ($169.1 million) were the best since 2022, when oil and natural gas prices were significantly higher than they were in 2024.
The company said its net income was hampered by an impairment expense of $36.7 million. “The impairment was taken on real estate and fracturing pumps with Tier 1 and Tier 2 engines (the tiers established by the U.S. Environmental Protection Agency to control emissions) and associated ancillary fracturing equipment held in the U.S. fracturing cash generating unit”, it said.
The company reported a revenue of $722.7 million for the full year, up from $580.2 million for 2023.
For the fourth quarter, the company posted a net loss of $44.6 million, versus a net loss of $5.2 million for the corresponding quarter a year prior. Earnings for the fourth quarter accounted for $2.5 million in share-based compensation expense, transaction costs of $2.2 million, $2.4 million in finance costs, and impairment expense of $23.9 million.
In 2024, STEP strengthened its foothold in the North American coiled tubing technology sector by acquiring the proprietary technology and intellectual property for the STE-conneCT downhole tool. The company said it has also collaborated with a major U.S. client to enhance ultra-deep coiled tubing capabilities.
In December, STEP and 2659160 Alberta Ltd. mutually agreed to terminate their arrangement with ARC Energy Fund 8 due to the inability to secure necessary minority shareholder approval.
Source: By Paul Anderson from Rigzone.com