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Management s Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this Annual Report, including the following factors: general economic conditions, such as inflation and government efforts to reduce inflation or a recession; persistent volatility in national and global crude oil demand and crude oil prices; the possibility of inefficiencies, curtailments or …
The business is unprofitable at the operating level (-4.76% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 10.2% YoY. Margins deteriorated 2.6pp alongside, both lines moving the wrong way.
ROIC dropped from -3.26% to -7.18%, capital efficiency is deteriorating. Negative free cash flow of -$42M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$627M
▼ -10.2% YoY
Net Income (TTM)
-$73M
▼ -45.5% YoY
Op. Margin
-4.13%
▼ -2.6pp YoY
ROIC
-6.40%
▼ -3.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$3M
▼ -281.7% YoY
Op. Cash Flow (TTM)
$45M
▼ -86.2% YoY
Net Debt
$327M
Cash & Equiv.
$6M
5Y CAGR: +18.1%
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