Fairmount Santrol announced fourth-quarter and full-year 2014 sales volumes. The company reports a strong fourth quarter driven by total sales volumes of approximately 2.5 million tons, an increase of 15 percent compared with the prior-year period. Overall, fourth-quarter raw sand volumes were 2.1 million tons, and value-added coated product volumes were 0.4 million tons, up 11 percent and 41 percent, respectively, over the prior-year period.
The reported volume growth was driven by continued proppant demand across all basins. Compared with the prior-year period, fourth-quarter volumes were favorably impacted by increased unit train shipments, faster throughput at the company’s in-basin terminals, and improved rail service, all of which led to improved delivery efficiencies for our customers.
For the full year of 2014, total sales volumes were approximately 9.6 million tons, an increase of 27 percent compared with 2013. Overall 2014 raw sand volumes were 8.1 million tons, and coated volumes were 1.5 million tons, up 25 percent and 43 percent, respectively, over the prior year.
In late March, following the completion of its first year-end audit as a public company, Fairmount Santrol will provide full earnings results for the fourth quarter and full-year 2014. The company expects to report adjusted EBITDA at or above its previously announced guidance range of $390 million to $395 million for the full year.
“Fairmount Santrol achieved many milestones during 2014, including shipping record volumes, expanding and enhancing our industry-leading logistics capabilities, reaching key environmental and community targets, and executing our initial public offering,” said Jenniffer Deckard, president and chief executive officer. “We are proud of our accomplishments and thankful for the hard work and commitment of every member of our organization.”
Regarding the outlook for the coming year, Deckard said, “While we expect uncertain oil and natural gas prices to lead to challenging market conditions throughout 2015, we remain confident in the fundamentals of our business. We are maintaining a close dialogue with our customers, many of whom we have served for over 30 years, to understand short-term market trends and longer-term opportunities. We will continue to strengthen our partnerships and help our customers succeed. Our market strength, product quality, unique technologies and industry-leading logistics network will continue to position Fairmount Santrol to capitalize as the market rebounds.”