Deep Down, an oilfield services company, has reported a net loss of $0.7 million, or ($0.05) loss per diluted share in the third quarter of 2017, compared to net income of $1.0 million, or $0.06 per diluted share same time last year.
Revenues for the quarter ended September 30, 2017 were $3.5 million compared to revenues of $9.2 million for the quarter ended September 30, 2016.
The $5.7 million (62 percent) decrease is primarily the result of delays in the start of certain customer projects, and fewer projects in process in 2017, coupled with the start of procurement and manufacturing activities on certain customer orders that resulted in higher than normal revenues in the three month period ended September 30, 2016.
Gross profit for the Q3 2017 was $1.0 million, or 30 percent of revenues, compared to $3.3 million, or 36 percent of revenues for the quarter ended September 30, 2016. The $2.3 million and 6 percent decrease in gross profit was a result of lower revenues during the quarter ended September 30, 2017.
Modified EBITDA loss for the quarter ended September 30, 2017 was ($0.9 million) compared to a Modified EBITDA of $1.5 million for the quarter ended September 30, 2016. The $2.4 million decrease is primarily attributable to our decrease in gross profit, as mentioned above.
At September 30, 2017, the company had working capital of $9.5 million, including cash of $5.7 million.
Ronald E. Smith, CEO, said: “While we are disheartened by delays in some key projects we expect to be working on, and the resulting disappointing results, we are cautiously optimistic that strategic partnerships we are pursuing will provide material benefits for us in 2018 and beyond, even as we continue to engage with our existing and new customers on their projects.
“We are continuing to engage in more discussions with different customers on what is commonly referred to as brownfield work, which is where operators seek to derive further benefit from their existing infrastructure, rather than develop new fields. We continue to view this as a growth opportunity for the company, and are making concerted efforts to enhance our market position in this area.
“Our balance sheet continues to be strong, we continue to evaluate opportunities to optimize our cost structure, and we are continuing to engage with our customers as they make plans for their projects in 2018 and beyond. Through these efforts we remain strongly committed to creating the most value for our customers, shareholders and employees.”