Oil States International, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total revenues of $692.6 million, down 11% from $782.3 million in 2023. The company experienced a net loss of $11.3 million, or $0.18 per share, compared to a net income of $12.9 million, or $0.20 per share, in the previous year. The operating loss for 2024 was $1.7 million, a stark contrast to the operating income of $23.2 million reported in 2023. The decline in revenues was primarily attributed to reduced customer investments in U.S. land-based operations, competitive market conditions, and the company's strategic exit from underperforming service offerings.
In terms of operational changes, Oil States implemented several restructuring initiatives throughout 2024, including the consolidation and exit of certain service locations and the exit of specific service offerings. These actions resulted in non-cash impairment charges totaling $24.6 million, which included $10 million related to goodwill in the Downhole Technologies segment. The company also recognized $10.8 million in intangible asset impairments and $3.8 million in operating lease asset impairments. Despite these challenges, the Offshore Manufactured Products segment saw a revenue increase of 4% year-over-year, driven by higher demand for international and offshore project-driven services.
The company reported a total employee headcount of 2,439 as of December 31, 2024, with 60% in the Offshore Manufactured Products segment, 18% in Completion and Production Services, and 19% in Downhole Technologies. The restructuring efforts included workforce reductions in the U.S. and the integration of certain short-cycle consumable product operations into the Downhole Technologies segment to enhance operational synergies. The company’s backlog in the Offshore Manufactured Products segment decreased to $311 million from $327 million in 2023, with bookings totaling $392 million in 2024.
Looking ahead, Oil States anticipates that the ongoing volatility in crude oil and natural gas prices, along with inflationary pressures and regulatory changes, will continue to influence customer spending and investment decisions. The company expects that approximately 70% of its backlog as of December 31, 2024, will be recognized as revenue during 2025. Additionally, the company plans to invest approximately $25 million in capital expenditures during 2025, funded through available cash and internally generated funds. The management remains focused on optimizing operations and exploring opportunities for growth in offshore and international markets.
About OIL STATES INTERNATIONAL, INC
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