Industrial and Specialty Products Segment Helps U.S. Silica Achieve Solid 2018 Third Quarter
Revenue in the Industrial and Specialty Products segment grew 17% sequentially and 106% over the third quarter of 2017 to $120.7 million in the 2018 third quarter.
U.S. Silica Holdings, Inc. recently announced revenue of $423.2 million for the third quarter of 2018, compared with $427.4 million in the second quarter of 2018, which represents a 1% sequential decline and an increase of 23% over the third quarter of 2017. Overall tons sold grew 7% sequentially and 18% over the third quarter of 2017 to reach 4.804 million in the third quarter of 2018.
“I am proud that our team overcame headwinds in our Oil & Gas sand business to deliver one of the best quarters in company history,” said Bryan Shinn, president and CEO. “We again demonstrated the strength of our customer relationships, offerings and diversified business model.
“Our Industrial and Specialty Products segment had another record-breaking quarter, setting highs for revenue, contribution margin and contribution margin per ton. These impressive results were driven by a full quarter of earnings from our recent acquisition, EP Minerals, several recent price increases and favorable product mix. I’m very excited about our prospects in ISP. We have a robust new business pipeline with more than 100 projects in the queue. These products should add substantial value to our business in the next few years.
“In Oil and Gas sand, we grew volumes 10% sequentially and continued to ramp our new Permian basin mining facilities. This achievement was impressive given the slowdown in well completions driven by Permian well offtake capacity issues and E&P 2018 budget exhaustion. While we did experience pricing pressure during the quarter on Northern White sand and spot sales, our contracts held up well.
“Our SandBox unit averaged 82 crews during the quarter, and though we saw lower load volumes from the slowdown in completions activity, this decline was partially offset by higher profitability per load. Sandbox has a strong pipeline of new work with recent contract awards from several operators for multiple crews planned to start in the next two quarters. We also have developed and launched several new innovative solutions to better serve our customers and grow the business.
“I am positive on the outlook for our Oil and Gas businesses in 2019. While we will likely see more white space on our customer’s calendars for the rest of this year, we believe these near-term challenges are transitory. Budgets will reset in 2019, takeaway capacity will be expanded and the record inventory of DUCs will begin to be completed. All of which should provide positive catalysts for sand and logistics demand. Further, we expect to see more higher cost Northern White sand capacity idled in the next few quarters, which will help balance supply and demand and support stable pricing.”
Revenue in the Oil and Gas segment was $302.5 million for the third quarter of 2018, compared with $324.1 million in the second quarter of 2018, down 7% sequentially and up 6% over the third quarter of 2017. Tons sold reached 3.821 million for the third quarter of 2018, compared with 3.465 million tons sold in the second quarter of 2018, up 10% sequentially and 21% over the third quarter of 2017.
Revenue in the Industrial and Specialty Products segment grew 17% sequentially and 106% over the third quarter of 2017 to $120.7 million in the 2018 third quarter, compared with $103.4 million in the second quarter of 2018. Tons sold totaled 0.983 million for the third quarter of 2018, compared with 1.024 million tons sold in the second quarter of 2018, down 4% sequentially and up 6% over the third quarter of 2017.
Additional details are available at www.ussilica.com.