Calgary oilfield services provider's stock rises despite leadership shakeup and financial setbacks in North America and Argentina
Calfrac Well Services CEO Pat Powell has resigned abruptly, a day after the company reported a quarterly loss.
According to BNN Bloomberg, the Calgary-based oilfield services provider confirmed Powell also stepped down from its board of directors and stated it is searching for a permanent replacement.
Calfrac did not provide a reason for Powell’s departure but acknowledged his contributions and extended well wishes.
In the company's quarterly earnings release on Thursday, Powell had expressed satisfaction with the team’s recovery in 2024 despite challenges in North America.
Calfrac's revenue for the fourth quarter of 2024 was $381.2m, reflecting an 11 percent decline from the third quarter. MarketSceener reports that the company attributed this decrease primarily to a typical seasonal slowdown in activity.
He also voiced confidence in Calfrac’s ability to manage “current headwinds.”
For the last three months of 2024, Calfrac posted a net loss of $6.4m, or seven cents per diluted share. This reversed its $13.2m profit from the same period in the previous year, when earnings were 15 cents per diluted share.
Calfrac, which operates in North America and Argentina, saw its stock price rise over five percent on the Toronto Stock Exchange by late morning Friday, reaching $3.69.
This leadership transition follows the earlier departure of President and Chief Operating Officer Lindsay Link, who retired from the company and its board of directors on January 4, 2023.
