Forum widens fourth-quarter loss
Forum Energy Technologies has seen its loss widened in the fourth quarter 2020 on asset impairments and restructuring costs as well as revenue drop of some 44 per cent.
The Houston-based energy sector products company recorded Q4 2020 loss of $32.7 million, or $5.85 per diluted share. This result compares to a net loss of $12.4 million, or $2.25 per diluted share, same time last year.
Sequentially, Forum also widened its loss from $3.86 per diluted share, despite revenue increase of $9 million.
The company generated revenue for the quarter, ended 31 December 2020 of $113 million, compared to $200 million in the corresponding period in 2019.
Full-year revenue stood at $512 million, versus $956 million in 2019.
Orders received in the quarter increased by $32 million to $124 million, sequentially.
For the Q4 2020, Forum recognised special items of $88 million gain from the ABZ and Quadrant valve brand asset sale. The gain was offset by $86 million of asset impairments and restructuring costs as well as $7 million in foreign exchange losses and $2 million of transaction expenses.
Full-year 2020 loss narrowed from $567 million in 2019 at $97 million.
Cris Gaut, chairman and CEO, said:
“In the fourth quarter, drilling and completion activity accelerated as oil and natural gas prices improved.
“In order to improve our returns as the market recovers, we restructured our portfolio, exiting lower margin products that would dilute our results.
“During the fourth quarter, we closed the sale of our ABZ and Quadrant valve brands for $105 million in cash, reducing our net debt by roughly one-third. Compared to the prior year end, net debt was down $141 million to $201 million at December 31, 2020.
“We ended the fourth quarter with $129 million in cash on-hand and only $13 million drawn on our credit facility, resulting in liquidity of $240 million.”