Forum sinks deeper in the red
Forum Energy Technologies has recorded loss in the first quarter 2020 of $37 million, or 33 cents per diluted share, compared to loss of $8 million, or $7 cents per diluted share, for the prior-year comparable period.
Sequentially, Forum widened its loss from $11 cents per diluted share, with revenue decrease of $17 million.
For the Q1 2020, Forum recognized special items (impairments of goodwill, intangibles, and fixed assets) of $15 million, or 13 cents per share, adding to adjusted net loss of $20 cents per diluted share.
The Houston-based oilfield products company generated revenue for the quarter ended March 31, 2020 of $183 million, compared to $272 million in the corresponding period in 2019.
Forum said it booked first-quarter 2020 orders of $171 million and ended this quarter with approximately $262 million of total liquidity.
Cris Gaut, chairman and chief executive officer, remarked,
“The recent unprecedented decline in oil demand and oil prices, associated with the coronavirus shutdown, is causing a collapse in drilling and completions activity, especially in North America.
“As drilling and completions activity declines to historically low levels, demand is very low for the new capital equipment and shorter cycle products Forum provides.
“We began to see the effect of this lower demand on Forum’s results in the first quarter 2020, but we expect a more significant negative impact on subsequent quarters this year.