Deep Down Loss Widens
Deep Down, an oilfield services company, reported a net loss of $0.5 million, or $0.03 loss per diluted share in the second quarter of 2016, compared to a net loss of $0.03 million, or $0.0 per diluted share for the second quarter of 2015.
Revenues for the quarter ended June 30, 2016 were almost $6.0 million compared to revenues of $6.5 million for the quarter ended June 30, 2015.
The $0.5 million, 9 percent, decrease is primarily a result of several offshore projects being delayed, and some projects having longer than expected delays in the commencement of procurement and manufacturing activities, thus reducing the corresponding revenues to be recognized, the company said.
Ronald E. Smith, chief executive officer, said, “The industry continues to languish in low oil prices and many of our customers are continuing to reduce their number of personnel. We are seeing our customers shift from pure cost reduction, to a longer term view of cost rationalization with the uncertainty in the industry in mind. This renewed mindset is giving rise to new opportunities for smarter and more collaborative solutions, especially within companies that made major personnel reductions. Much of the industry expects oil prices to improve by year-end, however there is no clear indication that will happen, so we intend to focus on cost reductions and running operations as lean as possible.
“We expect our backlog to remain fairly stable, with more than 80% of it from major operators, and will continue to focus on our core product lines, while managing our costs.”