Select Sands Corp. announced operational and financial results for the second quarter of 2019. Second quarter highlights include:
- Sold 30,068 tons of frac and industrial sand during the second quarter of 2019 as compared to 39,982 tons in the first quarter of 2019.
- Generated revenue of $1.4 million and a gross loss of $0.1 million in the second quarter of 2019, versus $1.6 million of revenue and a gross loss of $0.1 million in the preceding quarter.
- Reported a second quarter of 2019 net loss of $3.1 million, or $0.03 per diluted share, which included deferred income tax expense of $2.1 million.
Zig Vitols, president and chief executive officer, commented, “As expected, our second quarter results remained under pressure. While there is certainly a possibility of some additional spot contracts over the next few months, we generally anticipate similar weak results through the end of 2019 given the focus by our customers on free cash flow and disciplined capital spending, and considering that many have now used up a substantial portion of their 2019 capital budgets available for drilling and fracking of wells.
“Also substantially contributing to the current environment for frac sand providers has been the increased use of in-basin local sands that have come online in the southern U.S. oil producing basins,” Vitols said. “However, given the superior characteristics of Northern White Sand we are seeing that Northern White Sand will retain a niche share of the market in the basins being served. We also see that as oil and gas wells are being drilled to even lower depths such as in Permian’s Lower Delaware, O&G operators appreciate the benefit of 40/70 mesh Northern White Sand. We remain diligent in controlling costs and preserving working capital.”