Step Energy Q4 EPS Basic C$0.24 and Diluted $0.23; Provides Market Outlook and CapEx Outlook
07:49 AM EST, 03/02/2023 (MT Newswires) -- STEP Energy Services (STEP.TO) overnight Wednesday reported a Q4 net income of $16.7 million, or $0.23 per diluted share, compared with a net loss of $6.2 million, or a loss of $0.08 per diluted share, a year earlier.
STEP generated consolidated revenue of $251.4 million versus $158.7 million for the same quarter of 2021.
Adjusted EBITDA was $48.6 million, compared with $17.3 million in the year-ago quarter.
STEP's board approved a $103 million capital expenditure budget for 2023, split into $55 million for sustaining capital and $48 million for optimization capital.
The company noted in its outlook that the recovery in demand for oil and gas across the world and a renewed focus on energy security is expected to continue driving demand for oilfield services in North America. In Canada, Q2 2023 activity levels are expected to be solid for fracturing and coiled tubing, although current market conditions are unlikely to result in the record levels of performance reached in Q2 2022.
In the U.S., visibility into the second half of the year is improving, with discussions ongoing with clients for fracturing services into the third and fourth quarters. The drop in natural gas prices will likely result in some fracturing capacity repositioning from the gas-focused regions into the more oil-focused regions, but demand has stayed steady to date, the company added.