Select Sands Corp. reported that its pre-audit Q4 2021 frac and industrial unit sand sales were 94,670 tons, representing a 6% increase from Q3 2021 sales of 89,096 tons and a 79% increase from Q4 2020 53,009 tons.
Pre-audit revenue and sales volumes for full year 2021 more than doubled from 2020 to $19.7 million and 328,978 tons, respectively, compared to $9.7 million and 161,149 tons for full year 2020. After recording a gross margin loss of $333,767 in full year 2020, the full year 2021 gross margin profit is estimated at $1.6 million.
Zigurds Vitols, president and chief executive officer, commented, “Supported by increasing petroleum prices, we are seeing a continued increase in customer field activity levels as evidenced by the steady growth in our sales volumes throughout 2021. The overall industry wide frac sand demand in the Eagle Ford Basin is expected to continue its growth in 2022. Partially offsetting the positive impact of the improved industry fundamentals has been the related growth of certain costs, including energy and fuel expenses as well as trucking costs.
“The increase in sales tons remains encouraging as the company brings on more customers. The strategic location of our mine operations in Arkansas, compared to traditional Northern White Sands producers located in the Upper Midwest allow for shorter cycle times for rail delivery. The result is that Select Sands can offer its customers a high-quality product with a reliable, relatively quick response time compared to other Northern White Sand supply options that serve the Eagle Ford as well as other basins in the Southwest.”
The company’s sales unit volumes for Q1 2022 are expected to be between 100,000 and 110,000 tons.