CARBO Ceramics Inc. recently reported net income of $30.1 million on revenues of $201.5 million for the quarter ended September 30. Revenues for the third quarter increased 33%, or $50.3 million, compared to the third quarter of 2012. The increase is mainly attributed to a 48% increase in proppant sales volumes offset by a 6% decrease in the average proppant selling price for all proppants. North American (defined as Canada and the U.S.) proppant sales volumes increased 63%, while international proppant sales volumes decreased 17%, compared to the same period last year.
Operating profit for the quarter increased 26%, or $9.2 million, compared to the same period in 2012. The increase in operating profit was reportedly primarily the result of higher proppant sales volumes, offset by a change in product sales mix with more sand-based products and an increase in SG&A expense. Net income for the quarter increased 26%, or $6.3 million, compared to the third quarter of 2012.
“Third quarter revenue set a new high for the company, driven by strong demand for CARBO’s high-quality, high-conductivity ceramic proppant, combined with market share gains,” said Gary Kolstad, president and CEO. “A quarterly record in ceramic sales volumes was also achieved, with ceramic proppant volumes up 41% sequentially while ceramic proppant pricing was relatively stable. To meet this demand for our products in the major U.S. shale plays, such as the Bakken, Eagle Ford and Permian, as well as in Canada, we drew down finished goods inventory levels.
“Being a leader in production enhancement technology remains CARBO’s focus,” he said. “To that end, we expanded our Production Enhancement solutions during the quarter and unveiled a new proppant technology. KRYPTOSPHERE is an ultra-conductive, ultra-high strength proppant technology engineered to maximize and sustain hydrocarbon flow at high closure stresses for the life of the well.”
For more information, visit www.carboceramics.com.