Forum Chops Loss and Ups Revenue Despite Harvey Impact
Forum Energy Technologies recorded net loss in the third-quarter 2017 of $15 million, or 15 cents per diluted share, compared to net loss of $78 million, or 81 cents per diluted share, for the prior-year period.
Sequentially, net loss also narrowed from $78 million, or 81 cents per diluted share.
Adjusted net loss for the quarter was 10 cents per share, excluding 5 cents per share of special items, same as the adjusted net loss in the second quarter of 2017.
The Houston-based oilfield products company generated revenue for the quarter ended September 30, 2017 of $199 million, compared to $138 million in the corresponding period in 2016. Sequentially, revenue decreased close to $2.5 million.
These results were in line with analysts estimates, with revenue slightly off.
Forum said that its results were adversely affected by Hurricane Harvey, with an estimated impact to operating income of about $4 million. Eleven manufacturing and operations facilities were directly impacted by the storm, resulting in foregone revenue and under-absorption of manufacturing costs.
For the quarter, drilling & subsea segment revenue was $55 million, up 8 percent for the prior-year quarter, but down close to 15 percent sequentially.
The completions segment revenue was $60 million, while production & infrastructure segment revenue also increased some 57 percent at $85 million year-on-year.
The company said it has ended the quarter with $156 million of cash on hand.
For the Q4 2017, Forum estimates its EBITDA of $20-$24 million, with revenue growth of 23-30 percent sequentially, including the consolidation of Global Tubing it recently acquired.
Subsea World News Staff