Smart Sand Inc. announced results for the fourth quarter and full year ended Dec. 31, 2022.
Revenues were $73.8 million in the fourth quarter of 2022, compared to third quarter of 2022 revenues of $71.6 million. Fourth quarter 2022 revenues increased by 110% compared to fourth quarter 2021 revenues of $35.1 million.
The company had lower shortfall revenues in the fourth quarter of 2022, compared to the third quarter of 2022, but this was offset by higher sand sales revenue in the fourth quarter of 2022. The increase in revenue in the fourth quarter of 2022, compared to the fourth quarter of 2021, was primarily due to higher volumes sold at higher average selling prices.
Overall tons sold were 1,175,000 for the fourth quarter, a 6% increase over 1,110,000 tons for the third quarter of 2022. Tons sold in the fourth quarter of 2022 increased by 35% compared to tons sold in the fourth quarter of 2021 of 872,000.
Sales volumes were substantially higher in the fourth quarter 2022, compared to the fourth quarter 2021, due primarily to increased oil and natural gas drilling activity in 2022 driven primarily by higher prices in oil and natural gas.
Revenues were $255.7 million for the full year 2022, compared to $126.6 million for the full year of 2021, an increase of 102% year-over-year. The increase in revenues over 2021 results was due to higher sales volumes and higher pricing in 2022.
Sand sales revenue in 2022 was $243.2 million compared to $117.4 million in 2021, an increase of 107% year-over-year, as a result of increased sand sales volumes and higher prices primarily driven by increased market activity in the operating basins the company serves.
Total tons sold were 4,333,000 for the full year 2022, compared to full year 2021 total tons sold of 3,189,000, an increase of 36% year-over-year. Sales volumes improved early in 2022 and remained strong throughout the year.
“Smart Sand delivered strong fourth quarter and full-year 2022 results,” stated Charles Young, Smart Sand’s chief executive officer. “Market activity was strong in the fourth quarter and is carrying on into the first quarter of 2023. The quality of our Northern White Sand coupled with our cost effective, efficient and sustainable logistics capabilities is allowing us to increase our market presence in the key operating basins we serve in the Eastern and Western United States. We are moving forward with the opening of our Blair, Wis., mine and processing plant and expect it to be online in the second quarter of 2023. This will allow Smart Sand to offer our quality sand and superior logistics services to the Canadian market. We are excited about the opportunity to begin competing in this important Northern White Sand market. We experienced increased sales and higher utilization of our SmartSystems fleet in 2022 and we expect the utilization of our fleet to continue to increase in 2023. Our industrial sand business continues to grow as well. Overall, Smart Sand delivered solid financial and operating results in 2022. We are focused on continuing to drive value for our shareholders in 2023.”