Foraco International reports record quarter and full year 2023 results and proposes dividend distribution

TORONTO and MARSEILLE, France, Feb. 16, 2024 /CNW/ – Foraco International SA (TSX:FAR) (“Foraco” or the “Company”), a leading global provider of drilling services, is pleased to announce its results for the fourth quarter and full year ended December 31, 2023. All amounts are denominated in US Dollars (US$) unless otherwise stated.

Q4 2023 Financial Metrics (In million):

Revenue: US$ 86.6 m (+2% YoY)
EBITDA: US$ 18.7 m (+9% YoY from Q4 2022)
EBITDA as % of Revenue: 21.6% (up from 20.2% in Q4 2022)
Net Debt Reduction: US$ 65.2 m at year-end 2023 compared to US$ 76.2 m at year-end 2022

Full Year 2023 Financial Metrics (In million):

Revenue: US$ 370.1 m (+12% YoY)
EBITDA: US$ 86.7 m (+30% YoY)
Net Profit: US$ 33.9 m (9.2% of Revenue, +32% YoY)
Order backlog at year-end to be executed in 2024: US$ 236.1 m compared to US$ 217.4 m last year (+9%)
Proposed Dividend of C$0.06 per share

Tim Bremner, CEO of Foraco, reflected on the year, stating, “In 2023, Foraco achieved record revenue, profitability, and cash flow generation both quarterly and annually. We are now clearly recognized as one of the few companies firmly established as a market leader in the industry. Our strategy remains focused on operating within geopolitically stable regions and expanding our service portfolio within the critical sectors of battery metals, gold, and water management. Our strong position, the robustness of our business model, and our clients’ satisfaction and trust have resulted in an increased backlog to be delivered in FY 2024, which stood at US$236.1 million on December 31, 2023, compared to US$217.4 million on December 31, 2022 (+9%). To conclude this record year, I am pleased to announce that the Board of Directors, reflecting its confidence in the Company’s strength and outlook, has decided to propose a dividend of C$0.06 per share at the next shareholders’ meeting. On behalf of the Board and management team, I extend our deepest thanks to each member of the Foraco family for their invaluable contribution to our success.”

Fabien Sevestre, CFO of Foraco, shared insights into the financial achievements, “Our trustworthy and close relationship with our clients, along with our discipline in controlling risks, operations, working capital needs, capex, and SG&A costs, contributed to this consistently remarkable performance. During the quarter, we also managed to finalize the early redemption of our previous debt and refinance it, postponing the maturity and cutting the interest charge by 50%. Our net debt was reduced to US$ 65.2 million at year-end, and our leverage ratio to 0.75. This financial strength, along with the notable improvement in our EPS, expands our options for capital allocation. The appreciation in our share price over the past year represents a strong vote of confidence from the market. We are pleased that this appreciation, along with the proposed dividend distribution, rewards our shareholders for their long-term support.”

Income Statement

Full story available on Benzinga.com