Enservco serves up higher net losses in fourth quarter

Longmont’s Enservco Corp. (NYSE American: ENSV), which provides specialized well-site services to the domestic oil and gas industries, grew its net losses in both the fourth quarter of 2023 and for the full 2023 fiscal year.

Total revenue in the fourth quarter was $6.5 million, flat year over year, while the company’s net loss increased to $1.9 million from $1.7 million.

Enservco “wrote off goodwill recorded several years ago associated with prior business acquisitions in Q4 of 2023, amounting to $0.5 million, which negatively impacted the quarter,” the company said.

For the full 2023 fiscal year, sales were $22.1 million, up from $21.6 million in 2022, while Enservco’s net loss increased to $8.5 million from $5.6 million.

“This includes a $4.3 million non-cash gain on debt extinguishment recorded in 2022. Without this non-cash charge, the net loss decreased by $1.4 million in 2023 compared to 2022,” the company said. “Our gross profit margins continue to improve, and our general and administrative expenses continue to decrease on a comparative basis,” Enservco CEO Rich Murphy said in a prepared statement. “Our EBITDA loss continues to decrease as we execute on our long-stated goals of building a more sustainable and profitable business model, with reduced debt. Our total debt decreased to $8.7 million at year end 2023 from $12 million at the end of 2022 — a 28% decrease. We also recently announced entering into an agreement for an acquisition with Buckshot Trucking that we believe, if closed, would be transformative to the company by adding scale, improving margins, and reducing seasonality. As previously released, 2024 started off with significant improvements in our seasonal revenues. We look forward to sharing more information on the transaction and quarter one results in a few weeks.”