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Mar 31, 2020
Newpark Resources Q1 2020 Earnings Report
Newpark Resources reported results for Q1 2020
Key Takeaways
Newpark Resources reported a net loss of $12.1 million, or ($0.14) per share, for the first quarter of 2020. Total revenues for the first quarter of 2020 were $164.6 million compared to $211.5 million for the first quarter of 2019.
Total revenues for the first quarter of 2020 were $164.6 million.
Net loss for the first quarter of 2020 was $12.1 million, or ($0.14) per share
57% of first quarter 2020 consolidated revenues were derived outside of the U.S. land E&P market.
Company purchased 15% of outstanding bonds during the quarter, using available liquidity under bank facility.
Forward Guidance
Company continues to manage through the impact of the COVID-19 pandemic.
Positive Outlook
- Company has been working diligently over the last several years to reduce dependency on the US shale market, executing strategic actions across both segments.
- Company has strengthened position and diversified revenue base.
- Heavy IOC and NOC concentration in both the international and Gulf of Mexico markets will result in greater revenue stability relative to U.S. land.
- Accelerating growth in the utilities and other non-E&P markets remains a significant focus, as the economy reopens.
- Company joined the fight against COVID-19, leveraging chemical blending capacity and expertise to help meet the increased need for a variety of cleaning products
Challenges Ahead
- Unprecedented collapse of the oil & gas industry created by the demand destruction of the coronavirus and the resulting imbalance of supply and demand, has caused the price of oil to decline to historical lows.
- Collapse in oil prices is going to have long lasting effects on the U.S. land market, requiring additional structural action to right-size for the new market reality in Fluids Systems segment.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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