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Mar 31, 2021
Archrock Q1 2021 Earnings Report
Archrock's financial performance showed signs of stabilization with a smaller revenue decline and a return to profitability, driven by cost control and asset sales.
Key Takeaways
Archrock reported first-quarter 2021 results with a revenue of $195.4 million and a net income of $4.2 million, marking a significant improvement from the net loss in the same quarter of the previous year. The company focused on cost control and strategic asset sales, achieving a contract operations gross margin of 63%. Archrock reaffirmed its 2021 Adjusted EBITDA guidance range of $335 million to $375 million.
Revenue was $195.4 million, down from $249.7 million in Q1 2020.
Net income was $4.2 million, a significant turnaround from a net loss of $61.2 million in Q1 2020.
Adjusted EBITDA was $97.9 million, compared to $112.9 million in the same quarter last year.
Contract operations gross margin percentage increased to 63% due to cost-cutting measures.
Archrock
Archrock
Archrock Revenue by Segment
Revenue by Segment
Contract Operations Revenue
CapyFin.comAftermarket Services Revenue
CapyFin.com Forward Guidance
Archrock reaffirmed its 2021 Adjusted EBITDA guidance range of $335 million to $375 million.
Positive Outlook
- Global economic recovery supported by vaccine rollout.
- Favorable supply dynamics and supportive commodity prices.
- Momentum building in U.S. onshore activity.
- Large horsepower focus and geographic diversity.
- Financial flexibility and existing idle capacity.
Challenges Ahead
- Effects of the COVID-19 pandemic on business, operations, customers and financial conditions
- Changes in customer, employee or supplier relationships
- Local, regional and national economic and financial market conditions and the impact they may have on Archrock and its customers
- Changes in tax laws
- Conditions in the oil and gas industry, including a sustained decrease in the level of supply or demand for oil or natural gas or a sustained decrease in the price of oil or natural gas
Revenue & Expenses
Visualization of income flow from segment revenue to net income