DynaEnergetics Announces Global Price Increase

Rhea-AI Summary

DynaEnergetics, a subsidiary of DMC Global (Nasdaq: BOOM), will implement a 5% price increase on all products effective November 22, 2021. The decision follows a previously announced but postponed price hike aimed at supporting customers amid a competitive market. President Ian Grieves attributed the increase to rising labor and material costs and the expected phase-out of the CARES Act. He emphasized the efficiency of their integrated perforating systems, which help minimize inventory and labor at wellsites.

Positive

• Implementation of a 5% price increase may improve profit margins by offsetting rising costs.
• Increased oil and gas prices and well completion activity may drive demand for DynaEnergetics' products.
• Efficiency benefits of DynaEnergetics' products can enhance customer operations.

Negative

• Price increase may be perceived negatively by cost-sensitive customers.
• Potential backlash due to the timing of the increase amid competitive market pressures.

HOUSTON, Oct. 19, 2021 (GLOBE NEWSWIRE) -- DynaEnergetics, a business of DMC Global Inc. (Nasdaq: BOOM), today announced it will re-implement a 5% global price increase on all products shipped on or after November 22, 2021. DynaEnergetics announced a price increase in this year’s second quarter, but postponed its implementation in order to support customers navigating an extremely competitive market.

Ian Grieves, president of DynaEnergetics, said, “Concurrent with improved industry fundamentals that include sharply higher oil and gas prices and increased well completion activity, there has been a considerable escalation in labor and material costs. This price adjustment is necessary to offset those increases, as well as the anticipated wind down of the federal government’s CARES Act.”

Grieves added, “In today’s tight labor market, the efficiency and performance benefits of DynaEnergetics’ perforating systems are especially pronounced. Our DS systems are the only perforating products that are fully integrated, and factory assembled. They are delivered just in time to the wellsite, enabling customers to reduce inventory, streamline their supply chains, eliminate assembly operations and deploy fewer people to location.”

About DynaEnergetics
DynaEnergetics designs, manufactures and supplies a comprehensive suite of perforating products and systems for the global oil and gas industry. The business’ products are designed to enhance safety, productivity and operational efficiency of conventional and unconventional oil and gas wells. Continuous investments in quality, service and innovation keep DynaEnergetics and its customers at the forefront of the perforating sector.

Contact:
Ian Grieves
President
DynaEnergetics
+49.2241.1236.770
ian.grieves@dynaenergetics.com 

FAQ

What is the reason for DynaEnergetics' price increase on products?

The price increase is to offset rising labor and material costs, along with the anticipated end of the CARES Act.

When will the new pricing take effect for DynaEnergetics products?

The new pricing will take effect on November 22, 2021.

How much is the price increase for DynaEnergetics products?

DynaEnergetics is implementing a 5% global price increase.

What impact might the price increase have on DMC Global's stock (BOOM)?

The price increase may enhance profit margins, which could positively impact DMC Global's stock performance.