Tulsa-based Matrix Service Company reported a $28 million loss in the second quarter of its fiscal year and as a result, the company’s stock price dropped 35% on Wall Street.
Revenue for the second quarter totaled $318.7 million compared to $340.6 million a year earlier. The loss amounted to $1.04 per share compared to earnings of 14 cents a share for the same quarter of the prior fiscal year.
Despite the slowdown in the oil and gas industry, Matrix’s Storage Solutions segment managed to generate $142.8 million in revenue compared to $125.7 million in the same period in trhe prior year. Matrix leadership said the increase was due to increased tank and terminal work and higher levels of work in Canada.
John R. Hewitt, President and Chief Executive Officer said, “As a result of challenges in the Industrial and Electrical Infrastructure segments, we have made a series of strategic changes that we believe are necessary for our business over the long term. These organizational changes in our iron and steel, and power delivery businesses include talent enhancements as well as overhead and capital expenditure reductions. These actions will lead to improved operating performance across the organization as we continue to position the Company to maximize shareholder value.”
Subsequent to the end of the quarter the Company announced that it has been selected by Eagle LNG Partners LLC for the engineering, procurement, fabrication and construction of a LNG export facility to be built in Jacksonville, Florida. This project, which is expected to commence in 2020 is not reflected in the Company’s backlog as of December 31, 2019.
The opportunity pipeline remains strong for crude, LNG and NGL storage and export terminal construction along the Gulf Coast. Additionally, the Company is seeing increased opportunities in the Upper Midwest and Mid-Atlantic regions of the United States and in Canada.
The company’s Oil Gas and Chemical segment also reported a loss in the quarter. The segment generated $56 million revenue, down more than $30 million compared to the previous year. Matrix blamed the loss on lower levels of turnaround work.
The firm’s Electrical Infrastructure segment also lost earnings. Revenues totaled $30 million compared to $58.2 million a year earlier.
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Source: Matrix release