Select Sands Corp. announced operational and financial results for the second quarter of 2020, and the filing of its financial statements and associated management’s discussion and analysis. The company:
• Generated revenue of $0.04 million and a gross loss of $0.6 million versus $3.6 million of revenue and a gross loss of $0.8 million in the first quarter of 2020.
• Reported a second-quarter 2020 net loss of $1.2 million, or $0.01 loss per diluted share, compared to a net loss of $1.5 million, or $0.01 loss per diluted share, in the first quarter of 2020.
• Made significant progress during the second quarter and near completion on the company’s previously announced plant reconfiguration project to optimize and consolidate processing assets to improve costs. As a result, the plant reconfiguration project is nearing completion and has started processing all products at the Sandtown wet plant and 100 mesh at the Diaz location.
• Is benefitting from its lower production cost profile as sales activities have steadily increased from the beginning of the third quarter of 2020.
• Restarted customer shipments on July 1 and have steadily ramped up since that time. Sales volumes remaining at or close to levels prior to COVID-19 for the remainder of the year.
Zig Vitols, president and chief executive officer, commented, “The impact of the COVID-19 pandemic during the second quarter of 2020 on the global economy –and the oil and gas industry in particular – was unprecedented. While our topline results reflected the difficult operating environment, I am proud to report that our management and employee team rose quickly to the challenge by further reducing expenses as appropriate. In addition, we immediately transitioned our collective efforts to the completion of our plant reconfiguration project to ensure we would be ready to benefit from a lower cost profile once our customers’ well completion activities resumed. We were pleased to see that happen at the beginning of the third quarter and look forward to continued improvement in production and sales levels as we move through the remainder of the year.”