Secure Energy Services Inc., based in Calgary, is a key player in waste management and energy infrastructure across North America. Specializing in industrial waste processing, hydrocarbon recovery, and storage, Secure plays a critical role in the energy value chain. In 2024, the company made significant strategic shifts, including asset sales, to refocus on core business areas and fuel its growth.
2024 First-Half Financial Results
For the first half of 2024, Secure Energy reported revenues of $5.4 billion, a 46% increase from the previous year. This growth was mainly driven by oil purchase and resale, which rose by 61%. However, adjusted EBITDA declined slightly to $246 million, down 9%, primarily due to the sale of non-core assets.
In January 2024, Secure completed the sale of 29 facilities for $1.149 billion. This sale, mandated by the Competition Tribunal of Canada following Secure's acquisition of Tervita in 2021, involved 18 processing sites, 6 industrial landfills, 4 brine disposal wells, and 2 storage caverns. These facilities were critical for managing oilfield waste for producers in Western Canada.
Transformation Strategy and Asset Sale
The divestiture of these non-core assets aligns with Secure's strategy to focus on higher-value projects. These facilities, though critical for waste management in the oil and gas sector, were considered less essential to the company's new direction. The transaction has strengthened Secure's financial position, providing flexibility to allocate capital toward strategic investments, particularly in hydrocarbon storage infrastructure.
Hydrocarbon Infrastructure Strategy
Secure is increasingly focusing on energy infrastructure, particularly in hydrocarbon storage. The company already boasts extensive infrastructure for hydrocarbon transport and storage and continues to invest in additional capacity, such as the Clearwater terminal, specializing in heavy oil processing. This terminal is crucial as the expansion of the Trans Mountain pipeline and growing demand for heavy oil treatment drive higher volumes.
Secure has also expanded its pipeline transport capacity for hydrocarbons, enhancing storage flexibility and flow optimization for customers. This strategy ensures recurring revenue and mitigates volume risks through long-term contracts with minimum volume commitments.
Conclusion
Secure Energy continues to reshape its operations to focus on higher-value sectors, particularly hydrocarbon storage infrastructure and energy waste management. The sale of 29 facilities in 2024 underscores this shift toward core activities while boosting financial capacity for future investments. With a strategy focused on infrastructure optimization and prudent asset management, Secure is well-positioned to capitalize on growth opportunities in the coming years.
You will find in the attachment to this article the presentation file of the company.
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