Oklahoma City’s Mammoth Energy Services reported its fourth quarter total revenue increased over the third quarter of 2020, but for the year, its revenue was down 50% compared to a year ago.
Total revenue for the fourth quarter was $85.1 million, up 21% from the $70.5 million at the end of the third quarter 2020 and up 26% from the nearly $67 million reported at the end of the fourth quarter 2019.
For all of 2020, Mammoth had total revenue of $313.1 million, down 50% from the $625 million for all of 2019.
The fourth quarter 2020 net loss was $11.9 million or 26 cents a diluted share compared to net income of $3.4 million or 7 cents a diluted share in the third quarter of the year.
Net loss for the year ended December 31, 2020 was $107.6 million, or $2.36 per fully diluted share, as compared to net loss of $79.0 million, or $1.76 per fully diluted share for the year ended December 31, 2019.
Mammoth’s adjusted EBITDA was $7.5 million for the fourth quarter compared to $22.1 million in the third quarter.
Arty Straehla, Chief Executive Officer of Mammoth said 66% of the company’s fourth quarter revenues came from the industrial sector.
“Given the anticipated demand in the industrial sector, we are well positioned to continue to grow our industrial business rapidly over the coming years. We expect to be ready to ramp up our oilfield service offerings when oilfield demand, pricing and margins strengthen,” he said in response to the earnings report.
The oil and gas and related sectors at Mammoth have suffered in the past year. Its well completion division had a 20% drop in the fourth quarter revenue from the third quarter and an even higher 49% decrease compared to a year ago.
Mammoth’s natural sand proppant division on the other hand had increased sales and revenue. Its sand sales in the fourth quarter went up 47% resulting in a 97% increase in revenue.
As a result of market conditions, the company temporarily shut down its contract land drilling operations beginning in December 2019 and its rig hauling operations beginning in April 2020.
Those same market conditions forced Mammoth to temporarily shut down its cementing and acidizing operations as well as its flowback operations beginning in July 2019 and its coil tubing and full service transportation operations beginning in July 2020.
Click here for Mammoth Energy press release filed with SEC.