First Quarter ResultsHi everyone,
According to Tony Pagnucco, Bri-Chem's Chief Financial Officer, they are aiming to release their first quarter results on or about Wednesday May 15, 2024. I personally am not expecting any good results this quarter, given that rig counts continue to fall (although slower than at the previous rates and still with a moderately healthy drilling market), product raw materials and freight costs keep rising, and their competition remains very strong.
However, over the long term, I do expect marginal overall improvement with continued profits (small but still earnings increasing overall, not including or compared to any extraordinary items) turned in, reduced debt and inventory levels achieved (now with higher interest rates/costs - this is an extremely important component of their business), with management doing their best job not only to survive but actually grow sales and profits as best they can. It is a tough job but perhaps doable???
They have somehow survived a few oil price/drilling market crashes over many years and can possibly still be a decent small player in the drilling, completion, stimulation, and production of the chemical fluids industry, longer term. While their products are just speciality priced commodities, they do have a few special niche areas they could exploit more.
Plus, if they continue to somehow right size the company, it currently or could become a potential take over target (if management was onside). I can see the stock price dipping down into the higher twenty cent range for a while before any recovery is made back to much higher levels, only based upon achieving superior results. Good luck to all BRY shareholders as it seems it is going to continue to be a bumpy ride up and down.
Angles