OTCPK:GSFVF - Post by User
Post by
OptsyEagleon May 09, 2011 9:31pm
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Post# 18551521
As I See It ...
As I See It ...They were shut down for 3 out of 13 weeks with a slower ramp up then previously thought. The revenue estimate was about $40 million, they come in at $30 million operating for only about 75% of the time. Add to that the reality, that you can't really just stop all operations on a days notice and not compensate your customers for some of the financial inconvenience. This would mostly likely be done by a reduction in the revenue you ask for when the work resumes and you fulfill those contracts.
As for the loss instead of a trivial amount of profit, I would imagine that when you shut down operations for 25% of the time, some of your own costs must continue and that could not help but make the amount of profit difference we are talking about.
So the only real question that still remains is; does Gasfrac have the technology to garner a larger and larger share of the fracturing business?