Select Sands Corp announced operational and financial results for the first quarter of 2022. The company sold 107,428 tons of frac and industrial sand during the first quarter of 2022, which was 13% higher than 94,670 tons sold in the fourth quarter of 2021 and 79% higher than 59,970 tons sold for the first quarter of 2021. Driving the consistent increase in quarterly sales volumes throughout 2021 and into 2022 was higher demand for the company’s premium quality product offerings as petroleum pricing remained strong.
Recorded revenue of $6.2 million and gross margin of $0.7 million in the first quarter of 2022 compared to $6.1 million of revenue and gross margin of $0.7 million in the first quarter of 2021, and revenue of $3.6 million and a gross loss of $0.04 million for the first quarter of 2021.
The company also reported a net loss of $0.1 million, or $0.00 per share, in the first quarter of 2022, compared to a net loss of $0.8 million, or $0.01 per share, in the fourth quarter of 2021 and a net loss of $0.8 million, or $0.01 per share, in the first quarter of 2021.
Zig Vitols, president and chief executive officer, commented, “I am pleased with our start for 2022, including the 13% increase in frac and industrial sales volumes we saw in the first quarter. During the period, we benefitted from a continued strong oil and natural gas pricing environment, and we expect to see ongoing growth in demand for our premium quality Northern White Sand and other product offerings for the remainder of 2022 and into next year. I want to thank our entire workforce for their continued hard work and dedication.”
Vitols continued, “During the first quarter of 2022, we saw mine gate sales grow to approximately 40% of total sales from virtually zero in the fourth quarter of 2021. This impacted revenue but not gross margin as mine gate sales do not include transportation charges. Our first quarter sales also reflected an overall increase in the amount of time it took for customers to return rail cars, which impacted our ability to fully capitalize on the strength of the spot sales market. Although the issue of slow returning of rail cars persisted into the second quarter, we are working closely with our customers to find a resolution. We expect late railcar returns to be substantially eliminated by late summer or early autumn of this year.”