Smart Sand, Inc. reported that third-quarter revenues were $63.1 million, a 16 percent increase compared to second quarter 2018 revenues of $54.4 million.
Third-quarter 2018 revenues increased by 61 percent compared to third quarter 2017 revenues of $39.3 million. The increase in revenues over the previous quarter was attributed to an increase in average selling price per ton, driven by pricing adjustments in contracted prices for changes in the price of oil. The increase in revenues year over year was primarily due to higher sales volumes and a higher average selling price per ton sold.
Overall tons sold were approximately 823,000 in the third quarter of 2018, just short of the company’s record 839,000 tons sold last quarter and a 26 percent increase over the 653,000 tons sold in the third quarter 2017.
Net income was $12.1 million, or $0.30 per basic and diluted share, for the third quarter of 2018, compared with net income of $10.0 million, or $0.25 per basic and diluted share, for the second quarter of 2018 and net income of $7.0 million, or $0.17 per basic and diluted share, for the third quarter of 2017.
Charles Young, Smart Sand chief executive officer, stated, “I’m pleased to report that Smart Sand has had another good quarter on multiple fronts. We had strong financial results despite some market slowdown late in the quarter, we substantially ramped up our sales volumes through our Van Hook Terminal and we began manufacturing our first wellsite storage systems to be deployed in the field under our service model.
“We’ve now completed our first fleet of silos and we’re looking to have our first wellsite storage systems operating in the field in late 2018 or early 2019. Smart Sand is now a fully integrated frac sand services company that offers complete ‘mine to wellsite solutions.’
“Our Van Hook terminal in the Bakken has seen an uptick in activity, up over 97 percent sequentially since going live in the second quarter of this year. We are looking to replicate this in other basins, particularly the Marcellus. We believe the benefits of our long-term growth strategy for in-basin delivery of sand are new contracted customers, increased spot sales, incremental margin from logistics services, and increased opportunities to market our wellsite storage solutions,” he concluded.