Company pivots its business towards more stable jurisdictions. Temporary revenue contraction while maintaining good profitability. Best quarter ever in North America and Australia. TORONTO and MARSEILLE, France, Aug. 2, 2024 /CNW/ - Foraco International SA (TSX:FAR) ("Foraco" or the "Company"), a leading global provider of drilling services, is pleased to announce its results for the second quarter ended June 30, 2024. All amounts are denominated in US Dollars (US$) unless otherwise stated. Q2 2024 Highlights: Revenue amounted to US$ 77.9 million, compared to a record US$ 100.1 million in Q2 2023. Two key regions marked their best quarter ever: North America saw an increase of 3%, reaching US$ 32.1 million. Asia-Pacific (Australia) experienced a 38% increase, reaching US$ 22.2 million. In the EMEA region, revenue decreased US$ 7.8 million following the Company's strategic decision to exit unstable jurisdictions (Russia and some countries in West Africa). Revenue in South America decreased by US$ 20.7 million from last year's record quarter (US$ 39.0 million), due to a lack of financing in the junior mining sector and an early winter season on high-altitude projects. Gross Margin, including depreciation within the cost of sales, was a solid US$ 17.9 million (23.0% of revenue) compared to US$ 25.9 million (25.9% of revenue) in Q2 2023. Most projects generated solid operating performance, which partially offset the under-absorption of fixed costs. EBITDA amounted to 21.0% of revenue (US$ 16.4 million) compared to 23.8% of revenue (US$ 23.8 million) for the same quarter last year. Tim Bremner, CEO of Foraco, reflected on the quarter, stating, "We have achieved notable successes in our two main  markets, North America and the Asia-Pacific region, where we generated all-time record revenue. The decrease in revenue in EMEA is the result of our strategic decision to reduce exposure in unstable jurisdictions, including Russia and some countries in West Africa. In South America, we faced challenges mainly due to reduced funding  for junior miners particularly in the lithium commodity and adverse weather conditions. We are therefore confident that our strategy to focus on tier-one clients in mining-friendly countries will offer significant opportunities, driven by the demand for mineral commodities. We believe that the revenue contraction will be temporary as a result of our strategic decision to pivot the Company." Fabien Sevestre, CFO of Foraco, shared insights into the financial performance, stating, "During the quarter we have  maintained healthy financial metrics with a 23% gross margin after depreciation (compared to 26% in Q2 2023), a 21% EBITDA margin (compared to 24% in Q2 2023), and a 10% net profit margin (compared to 11% in Q2 2023). We also reduced our SG&A expenses by 18% compared to Q2 2023. The US$ 23.5 million increase in working capital requirements is entirely linked to supporting our developments in North America and Australia. We have achieved a 50% reduction in net financial expenses compared to H1 2023, thanks to more favorable interest rates from our new financing secured in Q4 2023. Looking ahead, we will continue to focus on debt reduction while staying active in strategic investments." Income Statement (In thousands of US$)(unaudited) Three-month  period ended June 30, Six-month  period ended June 30, 2024 2023 2024 2023 Revenue 77,884 100,066 154,973 188,444 Gross profit (1) 17,916 25,964 34,728 47,082 As a percentage of sales 23.0 % 25.9 % 22.4 % 25.0 % EBITDA 16,391 23,812 33,964 42,943 As a percentage of sales 21.0 % 23.8 % 21.9 % 22.8 % Operating profit  12,116 18,857 24,740 33,071 As a percentage of sales 15.6 % 18.8 % 16.0 % 17.5 % Net profit for the period  7,809 11,054 16,273 19,055 Attributable to: Equity holders of the Company 7,760 8,814 16,606 15,449 Non-controlling interests