Loading...
•
Jun 30, 2020
Select Water Solutions Q2 2020 Earnings Report
Select Energy Services' financial performance was challenged due to rapid declines in market activity, but cost savings measures were implemented to protect the balance sheet.
Key Takeaways
Select Energy Services reported a revenue of $92.2 million for Q2 2020, a significant decrease compared to previous periods. The company experienced a net loss of $53.0 million, and a gross loss of $23.7 million. However, cash flow from operations was $56 million, and the company maintained a strong cash position with $166 million in cash and no debt outstanding.
Revenue for the second quarter of 2020 was $92.2 million, a decrease from both the previous quarter and the same quarter in 2019.
Net loss for the second quarter of 2020 was $53.0 million, compared to a net loss of $291.2 million in the first quarter of 2020 and net income of $8.1 million in the second quarter of 2019.
Cash flow from operations for the second quarter of 2020 was $56.0 million.
The company had a total available liquidity of $262 million, including $166 million of cash, with no debt outstanding at the end of the second quarter of 2020.
Revenue by Segment
Forward Guidance
Select Energy Services expects challenges in the industry for the coming quarters but anticipates being able to capitalize on opportunities created by the current market dislocation.
Positive Outlook
- Cost savings measures are expected to allow the company to operate in a manner that protects the balance sheet and cash flows.
- The company expects savings of 40-45% relative to Q4 2019 run-rate to be fully realized in Q3 2020.
- Company expects to continue providing superior service quality that customers expect.
- Company expects to deliver innovative solutions to meet customers' needs.
- Company expects to generate long-term returns for investors.
Challenges Ahead
- There will certainly be challenges in the industry for quarters to come.
- The COVID-19 pandemic and related economic repercussions are negatively impacting the business.
- The current significant surplus in the supply of oil is negatively impacting the business.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...