Mammoth Energy Services posts first-quarter loss
Mammoth Energy Service officials said this week growing business opportunities for the company's electrical infrastructure division are encouraging.
Officials discussed that in a release announcing the company lost about $85.4 million, or $1.85 a share, on total revenues of about $97.4 million during the first quarter of 2020.
During the same quarter a year earlier, the company posted a net income of about $28.3 million, or 63 cents per share, on total revenues of about $262.1 million.
“The diversification strategy we implemented nearly three years ago is allowing us to focus on our infrastructure business ,” Ar ty St ra eh la, Mammoth's CEO, stated as part of the earnings release. “Infrastructure results are improving and we are encouraged by our new bidding opportunities.”
Straehla said most of the company's other divisions continue to see reduced or eliminated business opportunities because of volatile commodity markets created by demand reductions from the COVID-19 pandemic and the push earlier this year by Saudi Arabia and Russia to recapture global market shares they lost to U.S. crude exports the past several years.
Contributed revenues involving the company's pressure pumping services division, sand proppant services division, drilling services division and its other services division, which includes coil tubing, pressure control, flowback, cementing, a ci di zing, equipment rentals and crude oil hauling services, all were lower the first quarter of 2020, compared to the previous year.
Investors welcomed the earnings report's results on Monday, pushing the value of a Mammoth share traded on Nasdaq under the ticker symbol TUSK more than 17% higher for the day, to $1.29 per share.