Q2 2021 Financial Results CALGARY, Alberta, Aug. 12, 2021 (GLOBE NEWSWIRE) -- DIVERGENT Energy Services Corp. (“Divergent”, the "Company", or “DVG”) announces the release of its financial results for the three and six months ended June 30, 2021. All amounts are in thousands (000’s) of United States Dollars, unless otherwise noted.
HIGHLIGHTS FOR THE QUARTER
- Revenues of $1,991, an increase of 427% over Q2 2020.
- Operating income of ($57) and adjusted EBITDA of ($13) in Q2 2021 as compared to ($316) and ($201) in Q2 2020 demonstrated improved operating performance year over year.
- Cash flow in the quarter was sufficient to pay interest on debentures in cash, and not in shares of the Company as done in previous quarters.
INDUSTRY OUTLOOK
The continuous increases in the oil and gas commodity prices are expected to increase submersible pump sales across the United States in 2021. Both markets demonstrated strong pricing over the 2020/2021 winter months, a trend which has continued into the third quarter 2021. The amount of work available for the remainder of the year is dependent on the price of gas and how each client makes its internal decisions for the use of its working capital such as improving its balance sheet versus increasing production.
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.
The Company’s largest client has indicated that it intends to perform workovers for the remainder of the year at a pace similar to H1 2021, with the expectation that activity could increase should commodity prices continue on their current trend.
During the second quarter, the Small Business Administration (the “SBA”) was accepting applications for forgiveness of loans under its Paycheck Protection Program (the “PPP”). As previously announced, the Company anticipates that its $226 PPP loan will be forgiven as the funds had been used in accordance with the SBA guidelines for the loan. The Company has completed its application through its banking institution and has received notification from the bank that its use of funds meets the SBA guidelines for forgiveness. The bank has passed the application on to the SBA for final approval, for which we are still awaiting. Should the loan receive final approval, its forgiveness will have a positive impact on the Company’s working capital.
https://www.globenewswire.com/news-release/2021/08/12/2279828/0/en/DIVERGENT-Energy-Services-Announces-the-Release-of-Q2-2021-Financial-Results.html