RE:RE:Q2,2023The global CRT market continues to grow as customer preference shifts from running casing with traditional hydraulic power tongs to CRTs due to advantages of time and cost savings, risk reduction, and improved safety. This is another area of opportunity for McCoy with its DWCRT
TM tool introduced in 2019. In the first half of 2023, McCoy received orders from five new customers and two new geographies for the DWCRT
TM.
Looking ahead, we expect further growth in orders intake and revenue generation from this product line as we continue to gain market share with our product.
Turning to the North America land market, despite decreasing rig count and drilling activity negatively affecting our traditional capital equipment and aftermarket sales in the region, we continue to see robust order intake for our new FMS technology due to the performance and safety advantages inherent in its unique design, and the continued tightening labour market faced by many of our customers.
As we progress through the commercialization stage of our 'Digital Technology Roadmap' initiative, we expect future revenues to become less dependent on the cyclicity of drilling activity, and more driven by technology adoption, demand from new local and regional market entrants, and market share gains in new geographies.
For the remainder of 2023, we continue to focus on our key strategic initiatives to deliver value to all our stakeholders:
- Accelerating market adoption of new and recently developed 'smart' portfolio products;
- Taking advantage of the current market trajectory by focusing on revenue generation from new and existing customers;
- Focusing on capital allocation priorities; a) investment in growth through both organic and strategic M&A opportunities where returns are favourable and b) return excess cash to our shareholders in the form of share buy-backs and quarterly dividends.
We believe this strategy, together with our committed and agile team, McCoy's global brand recognition, intimate customer knowledge, strong balance sheet, and global footprint will further advance McCoy's competitive position and generate strong returns on invested capital.
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Sounds like the company is becoming less dependent on the "drilling cycle" and is more of a technological adoption story with cost savings, risk reduction, and improved safety as the drivers.
Excited that the company In the first half of 2023, received orders from five new customers and two new geographies for the DWCRTTM.