Oilfield services provider DMC Global Inc. (Nasdaq: BOOM) had a decidedly mixed quarter.
In its third-quarter earnings release Thursday, the Broomfield company’s total sales of $55.3 million were down 28% from the previous quarter this year and are 45% down from the same quarter last year as the energy industry continues to struggle with the pandemic’s severe effects on travel.
However, that figure beat its previous revenue guidance of $45 million to $50 million for the period and beat Wall Street consensus estimates by $8.78 million, according to data from finance site Seeking Alpha.
The company said its oilfield products segment saw a 122% increase in U.S. sales from the second quarter to the third, while its international sales dropped 27%, and it saw an unexpected 8% revenue increase in its composite metals segment.
While those figures seem promising, CEO Kevin Longe warned that the larger macroeconomic environment for new well drilling remains weak heading into the winter, when public health experts expect COVID-19 to spread further.
“Despite the recent improvement in well completion activity, the environment for North America’s unconventional oil and gas industry remains challenging, and most operators and service companies are actively streamlining operations and reducing costs,” he said in a statement.
DMC now expects its fourth-quarter sales to range between $50 million and $55 million.
In additional securities filings Thursday, the company said it will offer up to $75 million in new stock at its discretion at market prices.
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October 24, 2020 at 06:29AM
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