DMC Global posts small loss in final quarter of 2020

BROOMFIELD — Oilfield services provider DMC Global Inc. (Nasdaq: BOOM) closed out a difficult year for the energy industry with a sub-$1 million loss in the final three months of 2020.

The company’s fourth-quarter earnings of $57.11 million beat analyst expectations by $4.31 million and its loss-per-share figure of 5 cents was in line with consensus targets, according to data from finance site Seeking Alpha.

The sales beat was primarily driven by the restart of some well-drilling activity in North America that was shelved early on during the pandemic.

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Overall, the company lost $927,000 in the period.

For the entirety of 2020, DMC had revenues of $229.2 million, a full 42% lower than the year prior, and lost $1.4 million. The year was marred by a collapse in demand for oil after much of the world sheltered in place to avoid further spread of COVID-19, meaning far fewer people were filling up their cars for commutes or boarding planes for travel.

The resulting drop of oil prices forced energy operators to drastically cut their capital expenditures, including purchases of DMC’s drilling equipment.

DMC laid off about a third of its workforce early in the spring, but in a statement, CEO Kevin Longe said the company’s balance sheet is better than ever thanks to recovery in the energy markets and an ongoing equity sale allowing it to add cash at will in exchange for new shares.

“Our at-the-market equity program is providing added financial flexibility as we explore opportunities to accelerate our growth and deliver strong, sustainable returns for our stakeholders,” he said.

The company said it expects to produce sales in the range of $55 million to $62 million in the first quarter of 2021, or in line with its revenue results in the final quarter of 2020.

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