Core Laboratories Inc. reported third quarter 2024 revenue of $134.4 million, marking a 3% sequential increase and over 7% year-over-year growth. The company's operating income, ex-items, reached $18.2 million, yielding operating margins of 14%, a 100 basis point sequential improvement. Diluted earnings per share, ex-items, stood at $0.25.
The Reservoir Description segment saw revenue climb 3% sequentially to $88.8 million, with operating margins exceeding 17%, a 370 basis point sequential improvement. This growth was driven by demand for reservoir rock and fluid analysis, despite geopolitical conflicts and Gulf of Mexico weather disruptions. The Production Enhancement segment also grew 3% sequentially to $45.6 million, with operating margins of 6%, primarily due to higher international product sales.
Core Lab continued its financial discipline, reducing net debt by $11.8 million to $120.5 million, bringing its leverage ratio to 1.47, the lowest in over six years. The company generated $10.4 million in free cash flow for the quarter. Additionally, Core Lab secured multiple contracts to evaluate Carbon Capture and Sequestration (CCS) sites and was selected by Kuwait Oil Company for a comprehensive fluid analysis campaign in the Arabian Gulf.
New proprietary technologies were deployed, including the patented Pulverizor™ technology for offshore plug and abandonment operations, which reduces rig overpull. The solid Flow Profiler Oil™ technology was also utilized in Alberta, Canada, to confirm oil production from individual laterals in complex unconventional wells. For the fourth quarter of 2024, Core Lab projects revenue between $128.5 million and $135.5 million, with EPS expected to range from $0.20 to $0.25.
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