Natural Gas Services releases financial results for Q1, the report indicates a US$4.2 million revenue loss compared to Q1 2017.
Natural Gas Services Group (NYSE:NGS), a leading provider of gas compression equipment and services to the energy industry, releases financial results for the three months ended March 31, 2018. The report indicates a US$4.2 million revenue loss compared to Q1 2017.
As quoted from the press release:
NGS reported rental revenue of US$11.5 million compared to US$11.9 million for the quarter ended March 31, 2017. Sequentially, rental revenue on a quarterly basis stayed relatively flat with a slight increase of US$59,000.
The company reported net income for the first quarter of US$225,000 compared to US$252,000 in the same quarter in 2017 and US$18.7 million in the prior quarter. Excluding the effect of the tax benefit from the Tax Act of 2017, prior quarter adjusted net income was US$352,000. Earnings per diluted share for the quarter ended March 31, 2018 was US$0.02 cents.
Highlights of the quarter include:
Revenue: Total revenue for the three months ended March 31, 2018 was US$14.7 million, a decrease from US$18.9 million compared to the three months ended March 31, 2017. This decrease was mainly a result of a US$3.6 million drop in sales due to fluctuations in the timing of our compressor sales activity. Total revenue, sequentially, decreased between quarters by US$1.9 million, to US$14.7 million from US$16.7 million, due to lower flare and parts sales and some rescheduled large horsepower compressor sales.
Operating Income: Operating income for the three months ended March 31, 2018 was relatively flat compared to the same period in the prior year at US$350,000 and US$343,000, respectively. Sequentially, operating income increased to US$350,000 from US$217,000 due to a decrease in stock compensation expense.
“Rental revenues continued to solidify this quarter and our rental backlog, including all horsepower classes, has grown dramatically, portending further gains in rental revenue. Total sales revenues were off due to lower flare activity, a large engine sale in the last quarter and delayed fabrication of some large horsepower compressor sales in favor of large horsepower rentals,” said Stephen Taylor, president and CEO.