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ChampionX Corporation (CHX-1.51%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details a merger agreement with Schlumberger Limited, under which ChampionX will be merged with and into a wholly owned subsidiary of Schlumberger. Each share of ChampionX common stock will be converted into the right to receive 0.735 shares of Schlumberger common stock.
ChampionX reported total revenue of $3.63 billion for 2024, a decrease from $3.76 billion in 2023. The decline was primarily due to lower sales volumes in Latin America and a decrease in revenues from a cross-supply agreement with Ecolab.
The company reported a gross profit of $1.19 billion, up from $1.14 billion in the previous year. This increase was attributed to productivity improvements and discretionary spend control.
Selling, general, and administrative expenses increased to $720.6 million from $633.0 million, primarily due to $37.8 million in transaction costs related to the pending merger with Schlumberger.
ChampionX's net income for the year was $327.1 million, compared to $318.7 million in 2023. Net income attributable to ChampionX was $320.3 million, up from $314.2 million.
The Production Chemical Technologies segment reported revenue of $2.29 billion, a decrease from $2.40 billion in 2023, mainly due to lower sales volumes in Latin America.
The Production & Automation Technologies segment reported revenue of $1.04 billion, an increase from $1.00 billion in 2023, driven by the acquisition of RMSpumptools.
Drilling Technologies reported revenue of $211.8 million, slightly down from $215.7 million in 2023, due to lower rig counts.
Reservoir Chemical Technologies reported revenue of $94.3 million, down from $96.2 million in 2023, due to lower sales volumes.
ChampionX's cash and cash equivalents increased to $507.7 million as of December 31, 2024, from $288.6 million at the end of 2023. The increase was primarily due to improved segment profit margins and deferred tax payments.
Capital expenditures for 2024 were $141.3 million, with significant investments in infrastructure and leased asset programs.
The company declared a quarterly cash dividend of $0.095 per share, reflecting an increase from the previous year.
ChampionX continues to focus on its strategic priorities, including operational excellence, customer-centric innovation, and sustainability leadership, as it prepares for the anticipated merger with Schlumberger.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the ChampionX Corporation annual 10-K report dated February 5, 2025. To report an error, please email earnings@qz.com.