Revenues Increase 12% for CARBO Ceramics in 2018
CARBO’s 2018 revenues of $210.7 million increased 12%, or $21.9 million, compared to revenue of $188.8 million in 2017.
CARBO Ceramics Inc. recently reported financial results for the fourth quarter and fiscal year 2018. Revenues for the 2018 fourth quarter of $49.6 million decreased 18%, or $10.7 million, compared to revenue of $60.3 million in the same period of 2017. The largest contributors to this decrease were declines in sales of base ceramic and sand products.
The company’s operating loss for the fourth quarter of 2018 increased to $18.9 million, compared to $17.3 million in the same period of 2017, primarily due to the loss on the sale of the Millen plant. Approximately 55% of the operating loss for the fourth quarter of 2018 consisted of non-cash expenses.
CARBO’s 2018 revenues of $210.7 million increased 12%, or $21.9 million, compared to revenue of $188.8 million in 2017. The increase was the result of solid revenue growth in environmental, industrial, and oilfield technology products and services.
“Our transformation strategy continued to show solid progress during 2018,” said Gary Kolstad, CEO. “Gross loss was reduced by $31 million year-on-year and adjusted EBITDA improved $20 million year-on-year with a $22 million increase in revenue. These improvements were the result of focusing on growing our technology products and services, as well as continued cost reductions. In addition, excluding the sale of the Millen plant, we maintained cash neutrality in the second half of 2018 during a period of lower oilfield activity. Maintaining healthy cash balances is our highest priority.”
Oilfield sector revenue for 2018 increased 14% compared to 2016, comprising approximately 78% of total consolidated revenue. In the Industrial sector, 2018 revenue increased 24% and represented about 7% of total consolidated revenue. Comprising approximately 15% of total consolidated revenue in 2018, revenue in the Environmental sector revenue increased 39% over 2017.
“Base ceramic revenue for 2018 increased 3% year-on-year while frac sand related revenue increased 21% year-on-year,” said Kolstad. “The decline in the industry’s demand for frac sand, seen in the second half of 2018, impacted our sand sales volumes resulting in a decline relative to the first half of 2018.
“Our transformation strategy is working. We are very pleased with the profitable growth in our Industrial and Environmental business sectors. The growth of these two sectors should result in a balanced portfolio that is less susceptible to swings in oil and gas commodity prices. We are also pleased with the oilfield technology products and services profitable growth, and expect to retain our leadership position in those products and services.”
For more information, visit www.carboceramics.com.