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Sep 30, 2020
Newpark Resources Q3 2020 Earnings Report
Newpark Resources reported third quarter 2020 results with a net loss, but generated cash from operating activities and reduced debt.
Key Takeaways
Newpark Resources reported a net loss of $23.9 million for Q3 2020, but generated $15 million in cash from operating activities and reduced debt by $34 million. Revenues were $96.4 million, impacted by weather-related disruptions and COVID-19. The company is focused on free cash flow generation and debt reduction.
Generated $15 million cash from operating activities and reduced debt by $34 million.
Fluids Systems revenues declined due to weather disruptions in the Gulf of Mexico and COVID-19 impacts internationally.
U.S. land revenues in Fluids Systems increased 8% sequentially.
Mats and Integrated Services revenues improved 5% sequentially despite COVID-19 delays.
Forward Guidance
Newpark Resources expects more constructive conditions in the fourth quarter, with operating results benefitting from a rebound in the Gulf of Mexico, continued momentum in North American land markets, improvement in international markets, and fourth quarter seasonal strength in product sales within Mats and Integrated Services.
Positive Outlook
- Anticipated rebound in the Gulf of Mexico.
- Continued momentum in North American land markets resulting from the recent increase in rig counts.
- Improvement in the international markets.
- Fourth quarter seasonal strength in product sales within Mats and Integrated Services.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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