Revenue Increases 122% for U.S. Silica in 2017
Revenue for 2017 totaled $1.24 billion, compared with $559.6 million for the full year of 2016, an increase of 122%.
U.S. Silica Holdings, Inc. recently announced its financial results for the full year and fourth quarter ended December 31, 2017. Revenue for 2017 totaled $1.24 billion, compared with $559.6 million for the full year of 2016, an increase of 122%. Net income for the year was $145.2 million, compared with a net loss of $41.1 million for 2016. Overall tons sold totaled 15.1 million tons in 2017, compared with 9.9 million tons in the prior year.
Revenue totaled $360.6 million in the 2017 fourth quarter, compared with $182.4 million for the same period in the prior year, an increase of 98% on a year-over-year basis and 5% sequentially over the third quarter of 2017. Overall tons sold totaled 4.022 million, up 40% compared to 2.872 million tons sold in the fourth quarter of 2016 and relatively flat sequentially with the third quarter of 2017.
“We sold a record 3.2 million tons in Oil & Gas during the quarter, with relatively flat total contribution margin dollars sequentially, as we experienced some cost increases and lower Sandbox crew utilization due to a transitory slowdown in customer activity around the holidays and periodic disruptions to our business from the extreme winter weather,” said Bryan Shinn, president and CEO. “The Industrial & Specialty Products [ISP] business continued to outperform the market. Quarterly contribution margin for ISP of $21.3 million was up 12% on a year-over-year basis. We believe the ISP business can continue to grow its bottom line results at multiples of GDP as it benefits from an increasing mix of higher margin products.
“Looking back at 2017 in total, I am very pleased with the record results we delivered across the company and the significant progress the U.S. Silica team made toward our stated goal of substantially growing the profitability of our enterprise.”
For the first quarter of 2018, the company expects that volumes and pricing in the Oil & Gas segment will be flat compared with the fourth quarter of 2017. For ISP, first quarter volumes may reportedly be up slightly from the fourth quarter of 2018 with the restart of a large customer’s plant and some additional new business.
For more information, visit www.ussilica.com.