Deep Down revenues sink on delayed offshore projects
- Business & Finance
Oilfield services company Deep Down on Friday posted lower revenues for the second quarter of 2016, when compared to the prior-year quarter, due to delays in several offshore projects.
The company’s revenues for the quarter ended June 30, 2016 were almost $6 million compared to revenues of $6.5 million for the same period last year.
According to the company, the $0.5 million, or 9 percent, decrease is primarily a result of several offshore projects being delayed, and some projects having longer than expected delays in the beginning of procurement and manufacturing activities, thus reducing the corresponding revenues to be recognized.
Furthermore, Deep Down saw its net loss deepen during the quarter totalling $0.5 million, compared to a net loss of $0.03 million for the second quarter of 2015.
Ronald E. Smith, Chief Executive Officer, stated, “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.”
Offshore Energy Today Staff