Koil Energy Solutions, Inc. Announces Second Quarter 2023 Results
- Koil Energy reported consistent revenues of $3.5M in Q2 2023 compared to Q2 2022.
- Gross profit for Q2 2023 was $1.1M, representing 33% of revenues, compared to $1.5M, or 42% of revenues, in Q2 2022.
- Operating expenses increased by $0.1M to $1.6M in Q2 2023, mainly due to higher research and development costs and finance lease payments.
- Koil Energy reported a net loss of $0.4M in Q2 2023, compared to a net profit of $0.2M in Q2 2022.
- Modified EBITDA decreased to negative $0.3M in Q2 2023 from $0.2M in Q2 2022, reflecting lower gross margins.
- Working capital at June 30, 2023, was $3.5M, including cash of $2.3M and receivables of $3.7M.
- Shareholders' equity was $6.6M, or approximately $0.56 per common share, at June 30, 2023.
- None.
HOUSTON, Aug. 08, 2023 (GLOBE NEWSWIRE) -- Koil Energy Solutions, Inc. (OTCQB: KLNG) (“Koil Energy” or the “Company”), a specialist in deepwater production and distribution equipment and services, today reported results for the quarter ended June 30, 2023.
Koil Energy at a Glance:
Share Price†: | Cash*: | |||
52-Week Range†: | Book Value*: | |||
Shares Out.†: | 11.9M | Price / Book Value: | 1.0x | |
Market Cap†: | TTM Revenue: | |||
*As of 06/30/23; †As of 08/07/23 |
Charles Njuguna, Koil Energy’s CEO, commented, “Our second-quarter results generated solid free cash flow but fell short of our earnings expectations. We maintain a constructive outlook on the rest of the year as offshore activity remains strong and we continue to position ourselves to meet the operational and financial goals we set for the year. We have been busy engaging with our customers on a deeper level to better understand their offshore needs, and these efforts have instigated an increased level of bidding requests from our customers. As a result, we recently announced the receipt of several contract awards involving the design, engineering, and manufacturing of hose and steel tube flying leads and electrical and hydraulic distribution manifolds for various locations in the Gulf of Mexico, resulting in our project backlog increasing approximately fifty percent when compared to this time last year.
"While we have more work to do, we are focused on driving stability in our operations and supply chain to better manage cash flow, preserve liquidity, and meet our customer commitments. Bidding and project activity remain strong, and we are confident our streamlined operations and continued focus on our core strengths will allow us to increase productivity and steadily grow investment in our people, products, and technologies."
Operating Results
Koil Energy’s revenues for the three months ended June 30, 2023 (“Q2 2023”) of
Operating expenses were
Due to the factors discussed above, Koil Energy reported a Q2 2023 net loss of
Koil Energy reported a modified EBITDA of negative
Financial Position
At June 30, 2023, working capital totaled
About Koil Energy, Inc. (www.koilenergy.com)
Koil Energy Solutions is a leading energy services company offering subsea equipment and support services to the world’s energy and offshore industries. We provide innovative solutions to complex customer challenges presented between the production facility and the energy source. Our core services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services. Additionally, Koil Energy’s highly experienced team can support subsea engineering, manufacturing, installation, commissioning, and maintenance projects located anywhere in the world.
Forward-Looking Statements
Any forward-looking statements in the preceding paragraphs of this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials and execution of business strategy. For further information, please refer to the Company's filings with the Securities and Exchange Commission, copies of which are available from the Company without charge.
Investor Relations:
Trevor Ashurst
ir@koilenergy.com
281-862-2201
KOIL ENERGY SOLUTIONS, INC. | ||||||||||||||||
SUMMARY FINANCIAL DATA | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
Comparative Condensed Consolidated Income Statement | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Revenues | $ | 3,508 | $ | 3,499 | $ | 7,232 | $ | 7,100 | ||||||||
Cost of sales | 2,360 | 2,018 | 4,442 | 4,204 | ||||||||||||
Gross profit | 1,148 | 1,481 | 2,790 | 2,896 | ||||||||||||
Total operating expenses | 1,569 | 1,475 | 3,306 | 3,203 | ||||||||||||
Operating income (loss) | (421 | ) | 6 | (516 | ) | (307 | ) | |||||||||
Total other expense (income) | 8 | (181 | ) | 9 | (235 | ) | ||||||||||
Income (loss) before income tax expense | (429 | ) | 187 | (525 | ) | (72 | ) | |||||||||
Income tax expense | 4 | 10 | 5 | 15 | ||||||||||||
Net income (loss) | $ | (433 | ) | $ | 177 | $ | (530 | ) | $ | (87 | ) | |||||
Net income (loss) per share, basic and diluted | $ | (0.04 | ) | $ | 0.01 | $ | (0.04 | ) | $ | (0.01 | ) | |||||
Weighted-average shares outstanding, basic and diluted | 11,888 | 12,057 | 11,888 | 12,136 | ||||||||||||
Comparative Condensed Consolidated Balance Sheets | ||||||||||||||||
June 30, 2023 | December 31, 2023 | |||||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash | $ | 2,347 | $ | 2,353 | ||||||||||||
Other current assets | 5,023 | 4,532 | ||||||||||||||
PP&E, net | 3,092 | 3,305 | ||||||||||||||
Other non-current assets | 6,271 | 6,425 | ||||||||||||||
Total assets | $ | 16,733 | $ | 16,615 | ||||||||||||
Liabilities: | ||||||||||||||||
Current liabilities | 3,822 | 2,989 | ||||||||||||||
Other long-term liabilities | 6,293 | 6,518 | ||||||||||||||
Total liabilities | 10,115 | 9,507 | ||||||||||||||
Stockholders' equity | 6,618 | 7,108 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 16,733 | $ | 16,615 | ||||||||||||
KOIL ENERGY SOLUTIONS, INC. SUMMARY FINANCIAL DATA, CONTINUED (UNAUDITED) | ||||||||||||||||
Modified EBITDA: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(In thousands) | ||||||||||||||||
Net income (loss) | $ | (433 | ) | $ | 177 | $ | (530 | ) | $ | (87 | ) | |||||
Add: Interest expense, net | 2 | 3 | 4 | 5 | ||||||||||||
Add: Income tax expense | 4 | 10 | 5 | 15 | ||||||||||||
Add: Depreciation and amortization | 154 | 173 | 306 | 369 | ||||||||||||
Add: Share-based compensation | 16 | 14 | 40 | 71 | ||||||||||||
Add: Relocation costs | - | 29 | 9 | 29 | ||||||||||||
Deduct: Gain on sale of asset | (1 | ) | (134 | ) | (2 | ) | (188 | ) | ||||||||
Deduct: Reversal of litigation accrual | - | (100 | ) | - | (100 | ) | ||||||||||
Modified EBITDA (loss) | $ | (258 | ) | $ | 172 | $ | (168 | ) | $ | 114 | ||||||
Cash flow data: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(In thousands) | ||||||||||||||||
Cash provided by (used in): | ||||||||||||||||
Operating activities | $ | 912 | $ | 1,257 | $ | 238 | $ | 780 | ||||||||
Investing activities | (2 | ) | (420 | ) | (80 | ) | (767 | ) | ||||||||
Financing activities | (82 | ) | (100 | ) | (164 | ) | (250 | ) | ||||||||
Change in cash | $ | 828 | $ | 737 | $ | (6 | ) | $ | (237 | ) | ||||||
FAQ
What were Koil Energy's revenues in Q2 2023?
What was Koil Energy's net loss in Q2 2023?
What was Koil Energy's working capital at June 30, 2023?