Impressive.
One word comment.
Dividend , missing since 2014 restarted. You don't do that unless you expect the good times to continue.
Impressed by "In the first quarter of 2023, McCoy received orders from five new customers and two new geographies for the DWCRT
; not to mention the recently introduced products.
As at March 31, 2023 , McCoy's backlog totaled $26.1 million ( US$19.3 million ), which will support strong revenue and earnings performance for the remainder of 2023. Looking ahead, increased production throughput, as well as diligent supply chain management and disciplined overhead expenditures, are expected to further demonstrate solid operating leverage as orders and revenues sustain at the levels seen in the past three quarters.
Despite current economic uncertainty and threats of a recession, over the short to medium term, global oil & gas market fundamentals continue to be positive, particularly in international regions. Increased drilling activity levels, paired with new international market entrants will serve to further enhance commercial opportunities for new products, as well as for our legacy capital equipment. With respect to international markets, we continue to see a growing trend of drilling contractors, new local and regional market entrants, and in some cases national oil companies, entering the Tubular Running Services (TRS) space, taking market share from large multinational service companies. This trend benefits McCoy considerably as it creates additional capital equipment demand over and above market growth from increased drilling activity alone, as these new entrants require significant capital investment in capital equipment to execute tubular running service contracts. McCoy is aptly positioned to respond to this demand with its strong brand of product quality and responsive, local customer support. Among its competitors, McCoy offers the broadest portfolio of TRS equipment and now offers market leading technologies that provide superior safety, efficiency and simplified operating procedures.
The global CRT market continues to grow as customers experience the advantages of running casing with the CRT versus conventional power tongs, in the form 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 quarter of 2023, McCoy received orders from five new customers and two new geographies for the DWCRT TM . Looking ahead, we expect continued growth in orders intake and revenue generation from this product line as more and more markets adopt this technology as the preferred method to run casing.
Turning to the North America land market, despite flat active drilling activity driven by low natural gas prices as well as economic uncertainties, we anticipate meaningful opportunities for our new offerings with the continued tightening labour market faced by many of our customers. This was seen in the recent $4.1 million of orders received for McCoy's FMS in April 2023 . Commercialized in 2022, the FMS technology provides casing running service providers with performance and safety advantages inherent with its unique design features. We expect to see continued success with this patented technology for the remainder of 2023 and beyond. However, the outlook for revenue growth for our traditional capital product lines in this region is cautious with potential softness in drilling activity and a lingering oversupply of capital equipment remaining.