Mammoth posts second-quarter loss
Mammoth Energy Services' inf ra st ructure business “turned a corner” after the release of a critical report during the second quarter of this year, company officials said Thursday.
Arty Straehla, its CEO, discussed the segment's achievements as part of its second-quarter 2020 operational and financial results.
“In looking at our financial results, it is clear that our infrastructure services segment has turned a corner, with gross margin increasing to 17% during the second quarter of 2020 and adjusted EBITDA in this segment growing nearly 50% quarter-over-quarter for the last two consecutive quarters,” he said.
“The initiatives taken by our infrastructure management team have laid a solid foundation for growth.”
Mammoth's infrastructure subsidiary, Cobra, builds electrical transmission and distribution systems.
Other Mammoth subsidiaries provide well completion, equipment rental, drilling and completion consultancy services and sand used as part of well hydraulic fracturing processes to various customers.
Second-quarter results
Mammoth Energy Services posted a net loss for the second quarter of 2020 of about $15.2 million, or 33 cents per share, on total revenues of $60.1 million.
In the second quarter of 2019, it had posted a net loss of $10.9 million, or 24 cents per share, on total revenues of $181.8 million.
The company's second quarter 2020 adjusted earnings before interest, taxes, depreciation and amortization were $ 6.9 million, compared to $8.6 million the same quarter in 2019.
The company' s infrastructure division subsidiary contributed $30.6 million in revenue during the period, up 19% over the first quarter of the year.
Straehla noted a Rand Corporation report prepared for the U.S. Department of Homeland Security issued earlier this year concluded that the selection of Cobra to make electric grid repairs on Puerto Rico after Hurricane Maria was reasonable, as were the company's rates.
“We believe these are important data points as we continue to pursue payment from PREPA (the Puerto Rico Electric Power Authority) for the quality work performed by our team,” he said.
Revenues from Mammoth' s pressure pumping, sand proppant, drilling and other services divisions were all down during the second quarter, compared to the first quarter of the year.
“While the oil-field portion of our service offerings have experienced significant challenges as of late given the current industry and macroeconomic environment, we continue to maintain our oilfield equipment and plan to be ready to ramp up our service lines once demand returns,” Straehla said.