Tulsa’s Cypress Energy Partners, L.P. reported a slight increase in second quarter earnings of $76.5 million compared to a year ago. But the earnings jumped 18% over the first quarter of 2018.
It resulted in a 21-cent a unit cash distribution, consistent with the last five quarters of business operations.
Peter C. Boylan III, Cypress Energy Partners, L.P.’s (“CELP”) Chairman and Chief Executive Officer stated, “We are encouraged by the sequential improvement in our operating results in the second quarter of 2018. All three of our business segments continued to show solid growth during the quarter as anticipated.”
He said Tulsa Inspection Resources celebrating its 15th anniversary and has been profitable every year of its history.
“Our customers have recovered nicely from the downturn, benefitting from the material improvement in commodity prices that have led to increases in spending on maintenance and growth capital expenditures which, in turn, has benefited our business.,” he said. “Our Pipeline Inspection and Integrity Services segments represented 96% of our revenues and 81% of our gross margin during the three months ended June 30, 2018.
“Our Water Services segment continues to benefit from higher rig counts, activity, and oil prices. Revenues from our North Dakota operations continue to significantly increase ($3.0 million during second quarter 2018, compared to $2.4 million during first quarter 2018 and $1.5 million during second quarter 2017, an increase of 100% from year-to-year) due to increased customer activity and the completion in January 2018 of a new pipeline gathering system into one of our facilities.”
- Revenue of $76.5 million for the three months ended June 30, 2018, compared with $74.6 million for the three months ended June 30, 2017, representing a 2.5% increase. For the quarter, revenue increased sequentially by 18% over the three months ended March 31, 2018 of $64.8 million.
- Gross margin of $10.9 million for the three months ended June 30, 2018, compared to $8.6 million for the three months ended June 30, 2017, representing a 27.1% increase. For the quarter, gross margin increased 34.6% over the three months ended March 31, 2018, with a gross margin of $8.1 million. The gross margin percentage was 14.3% for the three months ended June 30, 2018, compared to 11.5% for the three months ended June 30, 2017 and 12.5% for the three months ended March 31, 2018.
- Net income of $3.6 million for the three months ended June 30, 2018, compared to $0.5 million for the three months ended June 30, 2017. Net income included gains on asset sales of $1.6 million and $0.1 million for the three months ended June 30, 2018 and 2017, respectively. For the three months ended March 31, 2018, net income was $1.0 million.
- Read the entire report here.