Mammoth announces trim with quarterly results
Mammoth Energy Services is adjusting its operations as it continues to deal with the end of its contract to help restore Puerto Rico's energy grid and reduced demands for oil-field services here at home.
CEO Arty Straehla said the company has cut its capital expenditures budget for 2019 from $80 million to $41 million and that its board has suspended quarterly cash dividends to shareholders.
“As a result of current market conditions, we have begun to right-size our operations, and we expect this process to be completed in the coming months,” Straehla stated in Thursday's earnings release.
The company reported a net loss of $10.9 million, or 24 cents a share, in the second quarter of 2019, compared to a net income of $42.7 million, or 95 cents a share, the same time a year ago.
Mammoth stated its total revenue in the second quarter of 2019 was $182 million,
compared to $ 534 million in 2018. Its adjusted earnings before interest, taxes, depreciation and amortization for the second quarter this year was $8.6 million, down from $149 million in the second quarter of 2018.
Straehla acknowledged in the company's earnings release that the second quarter of 2019 was challenging, as oil
and gas exploration and production companies Mammoth provides completion services for either delayed or cancelled planned completion operations on some wells.
Second quarter revenues provided by the company's pressure pumping, sand and other services divisions were down, year- over- year by amounts ranging from 15% to 30%.
But the biggest revenue hit using the same comparison involved Mammoth's Infrastructure Services division, which only
contributed $41.8 million in revenues in the second quarter of 2019, compared to $360 million the same quarter a year ago. The division includes Mammoth's subsidiary Cobra Acquisitions, which had been working in Puerto Rico to help the island government restore its electrical grid.
Since Mammoth began pulling its crews and equipment out of Puerto Rico, filings in a related court case showed that Cobra Acquisitions, the Puerto Rico Electric Power Authority and the
U.S. Federal Emergency Management Agency are targets of an ongoing criminal investigation examining how the company obtained contracts worth more than $1.8 billion to do that work.
Straehla said the company during the second quarter continued working through challenges of getting its equipment from Puerto Rico back to the mainland.
Mammoth's stock, traded on Nasdaq under the ticker symbol TUSK, closed off 45 cents a share for the day at $6.03.