Fairmount Santrol announced results for the third quarter of 2016. Third-quarter revenues were $134.8 million, up 18 percent from $114.2 million in the second quarter of 2016 and down 21 percent from $171.0 million for the third quarter of 2015. Overall volumes sold were 2.4 million tons for the quarter, an increase of 24 percent from 2.0 million tons in the second quarter of 2016 and an increase of 19 percent from 2.0 million tons in the third quarter of 2015.
“We are encouraged by the early signs of improvement we saw in the proppant market during the third quarter,” said Jenniffer Deckard, president and chief executive officer. “Third-quarter volumes in our Proppant Solutions segment saw significant increases sequentially and over the prior-year period, as demand strengthened for both our raw frac sand and coated proppants. In addition, we instituted appropriate price increases on certain Northern White sand products late in the third quarter. As market conditions improve, we will continue to evaluate our operational footprint to ensure we are optimally positioned to quickly address upticks in demand and efficiently deliver product to both our Proppant Solutions and Industrial & Recreational customers. The third-quarter reopening of our Menomonie facility and the completed expansion of our Wedron facility earlier this year are expected to enable us to meet current demand for Northern White sand, which continues to grow.”
Proppant Solutions volumes for the third quarter of 2016 were 1.8 million tons, an increase of 36 percent compared with the second quarter of 2016 and up 20 percent compared with the prior-year period. Raw frac sand volumes were 1.7 million tons, a 35 percent sequential increase and a 27 percent increase compared with the same period a year ago. Coated proppant volumes were 96,500 tons, a 61 percent increase compared with the second quarter of 2016 and a 38 percent decrease from the prior-year period.
During the third quarter, average product price per ton across both raw and resin-coated sand was 6 percent below second-quarter average product price levels. This was largely due to product mix and to higher relative prices throughout the first half of the second quarter. At the exit of the third quarter, prices were slightly above second-quarter ending prices.