Apr. 23 at 9:43 PM
$CLB Core Laboratories sees Q2 EPS 17c-21c, consensus 19c
Sees Q2 revenue
$128M-
$134M, consensus
$128.9M. The company states: "Recent tariffs announced by the U.S., along with OPEC's decision to increase oil production, have resulted in a decline in crude oil prices. The uncertainty of demand for crude oil caused by ongoing trade negotiations, combined with the OPEC+ announcement of increased production quotas, has raised the likelihood that crude oil inventory levels will rise. Core maintains its constructive long-term outlook on international upstream projects for the remainder of 2025 and beyond.
The IEA, EIA, and OPEC+ continue to forecast growth in crude oil demand to be between 0.7 and 1.3 million barrels per day for 2025. This demand is mainly driven by non-OECD countries in Asia, India, emerging markets in the Middle East, and Africa. Outside the U.S., large-scale international oil and gas projects are expected to be more resilient to the near-term volatility of crude oil prices. Core sees international project activity to be steady, with committed long-term upstream projects from the South Atlantic Margin, North and West Africa, Norway, the Middle East,and certain areas of Asia Pacific.
The Company believes that activity levels associated with smaller-scale, short-cycle crude oil development projects will be more sensitive to a decrease and/or continued volatility of crude oil prices. As such, changes in crude oil prices are anticipated to have a greater impact on drilling and completion activity levels in the U.S. onshore market. Core Lab believes that the proposed tariffs will not apply to the vast majority of service revenue and product sales provided by the Company. Core Lab's services account for over 75% of the Company's total revenue, and are currently not subject to tariffs.
Core's product sales have been less than 25% of total revenue, and are primarily manufactured in the U.S.; import tariffs would not apply to approximately 50% of these products, as they are consumed in the U.S. drilling and completion markets. Products manufactured in the U.S. and delivered to international clients may attract tariffs depending on the outcome of international trade negotiations. Certain raw materials imported and used in the Company's U.S manufacturing of products may attract import tariffs applied by the U.S. The Company is currently taking steps to mitigate the impact of potential tariffs."
