DIVERGENT Energy Services Announces the Release of Q3 2021 Financial Results
17 11월 2021 - 11:00PM
DIVERGENT Energy Services Corp.
(“Divergent”, the "
Company", or
“
DVG”
) announces the release of
its financial results for the three and nine months ended September
30, 2021. All amounts are in thousands (000’s) of United States
Dollars, unless otherwise noted.
HIGHLIGHTS FOR THE QUARTER
- Revenues of
$2,185, an increase of 194% over Q3 2020.
- Operating income
of $264 and adjusted EBITDA of $308 in Q3 2021 as compared to $61
and ($130) in Q3 2020 demonstrated improved operating performance
year over year.
- The Company
received confirmation of forgiveness of the Payroll Protection Plan
(“PPP”) loan of $226.
INDUSTRY OUTLOOK
The continuous strength in oil and gas commodity
prices are expected to increase submersible pump sales across the
United States for at least the next 12 months as customers utilize
commodity price hedges to ensure revenue certainty. Both commodity
markets demonstrated strong pricing increases over the past 12
months, which is forecasted to continue well into 2022. The amount
of work available for the Company over the next twelve months is
dependent on the continued strength in commodity prices and in turn
how each client makes its internal decisions for the allocation of
its capital, be it improving its balance sheet by way of paying
down debt or increasing production through investment in field
operations.
The Company’s largest client has indicated that
it intends to continue its coal-bed methane workover program for
the next 12 months at a pace similar to that experienced during Q3
2021, barring potential weather-related disruptions and assuming
commodity prices continue on their current trend. While rig counts
are increasing in Wyoming, our oil customers who use ESPs have not
yet committed to making investments in their field operations
despite their improved balance sheet positions.
In the ongoing COVID-19 pandemic, the Company
continues to maintain its health and safety protocols, working from
home when necessary and where practical, and actively monitoring
the health of our employees.
FINANCIAL AND OPERATING HIGHLIGHTS –
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021
Select Financial Information for the three and
nine month period ended September 30, 2021 have been summarized
below. Tables contain first quarter results for 2021 and 2020.
Refer to the Company’s unaudited condensed consolidated financial
statements and related management’s discussion and analysis
(“MD&A”) for a full description.
(All figures in ‘000’s of US dollars except
number of shares and per share data, unless otherwise stated)
Unaudited Interim Condensed Consolidated Statements of
Net Income (Loss) and Comprehensive Income (Loss)
|
|
Three months ended September 30, |
|
|
|
|
|
Nine months endedSeptember
30, |
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenue |
|
$2,185 |
|
$743 |
|
$5,897 |
|
$2,885 |
|
Cost of sales |
|
|
(1,557) |
|
|
(599) |
|
|
(4,518) |
|
|
(2,301) |
|
Provision for slow moving
inventory |
|
|
21 |
|
|
289 |
|
|
181 |
|
|
94 |
|
Gross profit |
|
|
649 |
|
|
433 |
|
|
1,560 |
|
|
678 |
|
General and
administration |
|
|
(371) |
|
|
(416) |
|
|
(1,214) |
|
|
(1,478) |
|
Depreciation and
amortization |
|
|
(2) |
|
|
45 |
|
|
(7) |
|
|
(17) |
|
Stock based compensation |
|
|
(12) |
|
|
(1) |
|
|
(19) |
|
|
(9) |
|
Results from operating
activities |
|
|
264 |
|
|
61 |
|
|
320 |
|
|
(826) |
|
Finance income (expense) |
|
|
300 |
|
|
(147) |
|
|
2,183 |
|
|
66 |
|
Net income
(loss) |
|
|
564 |
|
|
(86) |
|
|
2,503 |
|
|
(760) |
|
Other comprehensive income
(loss) |
|
|
(218) |
|
|
121 |
|
|
(32) |
|
|
(160) |
|
Total comprehensive
income (loss) for the period |
|
$346 |
|
$35 |
|
$2,471 |
|
|
($920) |
|
Income (loss) per
share |
|
|
|
|
|
Net income (loss) – basic and
dilutive |
|
$0.02 |
|
$0.00 |
|
$0.08 |
|
|
($0.01) |
|
|
|
|
|
|
|
Unaudited Interim Condensed Consolidated Statements of
Financial Position
|
|
September 30,2021 |
|
December 31,2020 |
ASSETS |
|
|
|
Current assets |
|
|
|
Cash |
|
$447 |
|
$63 |
|
Prepaid expenses, deposits and advances |
|
|
131 |
|
|
77 |
|
Receivables, net of allowance |
|
|
765 |
|
|
975 |
|
Inventories |
|
|
684 |
|
|
1,261 |
|
|
|
|
2,027 |
|
|
2,376 |
|
Non-current assets |
|
|
|
Property and equipment |
|
|
142 |
|
|
171 |
|
Right-of-use assets |
|
|
543 |
|
|
630 |
|
Total
Assets |
|
$2,712 |
|
$3,177 |
|
LIABILITIES |
|
|
|
Current liabilities |
|
|
|
Accounts payable and accrued liabilities |
|
$1,076 |
|
$1,401 |
|
Current portion of lease obligations |
|
|
160 |
|
|
170 |
|
Interest payable |
|
|
175 |
|
|
91 |
|
Paycheck protection program loan |
|
|
- |
|
|
53 |
|
Promissory notes |
|
|
450 |
|
|
156 |
|
Debentures |
|
|
- |
|
|
4,356 |
|
|
|
$1,861 |
|
|
6,227 |
|
Non-current liabilities |
|
|
|
Lease obligations |
|
|
362 |
|
|
452 |
|
Promissory notes |
|
|
1985 |
|
|
2,300 |
|
Government loan |
|
|
25 |
|
|
186 |
|
Debentures |
|
|
629 |
|
|
- |
|
Total
Liabilities |
|
$4,862 |
|
$9,165 |
|
SHAREHOLDERS’
DEFICIT |
|
|
|
Share capital |
|
$19,613 |
|
$18,364 |
|
Contributed surplus |
|
|
5,819 |
|
|
5,800 |
|
Warrants |
|
|
240 |
|
|
141 |
|
Accumulated other comprehensive loss |
|
|
(1,077) |
|
|
(1,045) |
|
Accumulated deficit |
|
|
(26,745) |
|
|
(29,248) |
|
Total Shareholders’
Deficit |
|
($2,150) |
|
($5,988) |
|
Total Liabilities and
Shareholders’ Deficit |
|
$2,712 |
|
$3,177 |
|
|
|
|
|
The Company’s complete set of September 30, 2021
quarter end filings have been filed on the SEDAR website at
www.sedar.com and are also available on the Company’s website at
www.divergentenergyservices.com.
For Further Information:
Ken Berg, President and Chief Executive Officer,
kberg@divergentenergyservices.com
Ken Olson, Interim Chief Financial Officer,
ken.olson@divergentenergyservices.com
ABOUT DIVERGENT ENERGY SERVICES CORP.
Headquartered in Calgary, Alberta, Divergent
provides fluids management products and services for the water, gas
and oil industries through its wholly owned subsidiary Extreme Pump
Solutions LLC. Product lines including Electric Submersible Pumps
and the future development of an Electromagnetic Pump
technology.
DIVERGENT Energy Services Corp., 2020, 715 – 5th Ave SW,
Calgary, AB T2P 2X6, (403) 543-0060, (403) 543-0069 (fax),
www.divergentenergyservices.com
FORWARD LOOKING STATEMENTS
This press release contains forward-looking
statements, including, without limitation, statements pertaining to
anticipated future operational activity levels of Divergent and of
a majority of its customers, and statements pertaining to interest
payments on the Company’s debentures. All statements included
herein, other than statements of historical fact, are
forward-looking information and such information involves various
risks and uncertainties, including: the risk that the anticipated
slowdown in sales and service of submersible pumps by Divergent’s
customers lasts longer than expected or impacts Divergent’s
revenues more severely than expected, the risk that the COVID-19
pandemic and the low oil and gas price environment cause additional
negative effects on Divergent’s business, the risk that the
suspension of trading of the Company’s common shares by the TSXV
cannot be lifted in a timely manner or at all, and the risk that
the Company cannot remedy the outstanding interest payments under
the terms of its debenture indenture in a timely manner or at all.
There can be no assurance that such information will prove to be
accurate, and actual results and future events could differ
materially from those anticipated in such information. A
description of assumptions used to develop such forward-looking
information and a description of risk factors that may cause actual
results to differ materially from forward-looking information can
be found in the Company's disclosure documents on the SEDAR website
at www.sedar.com. Forward-looking statements are based on estimates
and opinions of management of the Company at the time the
information is presented, including expectations provided to
Divergent by its customers. The Company may, as considered
necessary in the circumstances, update or revise such
forward-looking statements, whether as a result of new information,
future events or otherwise, but the Company undertakes no
obligation to update or revise any forward-looking statements,
except as required by applicable securities laws.
This press release contains financial outlook
information ("FOFI") about prospective revenue reductions, which
are subject to the same assumptions, risk factors, limitations, and
qualifications as set forth in the above paragraphs. FOFI contained
in this press release was made as of the date hereof and was
provided for the purpose of providing an update regarding an
anticipated material reduction in near-term revenue. Divergent
disclaims any intention or obligation to update or revise any FOFI
contained in this press release, whether as a result of new
information, future events or otherwise, unless required pursuant
to applicable law. Readers are cautioned that the FOFI contained in
this press release should not be used for purposes other than for
which it is disclosed herein.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
(Not for dissemination in the United States of
America)
Divergent Energy Services (TSXV:DVG)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Divergent Energy Services (TSXV:DVG)
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부터 12월(12) 2023 으로 12월(12) 2024