Deep Down books loss despite higher revenues
Houston-based oilfield services company Deep Down reported a net loss for the second quarter of 2019 compared to a profit in the prior-year period despite increase in revenues driven by higher number of projects underway.
Deep Down said on Wednesday that its 2Q 2019 revenues improved 28 percent to $5.3 million compared to $4.1 million in the same quarter of 2018, primarily due to a higher number of projects in process.
The company reported a net loss of $112,000 for the quarter compared with 2Q 2018 net income of $292,000.
“Despite a slight decline in gross margin to 37 percent, gross profit in the second quarter of 2019 improved to $2.0 million compared to $1.7 million in the same period last year due to higher revenue,” the company stated.
On June 30, Deep Down had working capital of $6.5 million, including cash of $3 million, and total shareholders’ equity of $17.1 million.
Charles Njuguna, CFO of the company, added: “We believe Deep Down remains well-positioned to execute on our business goals given our $6.5 million in working capital, anticipated operating cash flows and the potential for future opportunistic asset sales.
“We also continue to identify opportunities for overhead and other cost reductions, which we believe can provide material benefits to our bottom-line performance in future periods.”
Offshore Energy Today Staff
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