Despite revenue gains, Enservco posts third quarter loss

LONGMONT — Oil and gas well-site service provider Enservco Corp. (NYSE: ENSV) saw its sales grow by 72% in the third quarter but posted a net loss for the period. 

Revenues were $3 million during the most recent quarter, up from $1.8 million during the third quarter of 2020. 

Still, the Longmont firm posted a net loss of $200,000. That’s down from net income of $8.4 million during the same period last year. 

“The third quarter 2021 net loss included the impact of $2 million in PPP loan and accrued interest forgiveness and $600,000 in CARES Act payroll tax credits,” according to Enservco’s quarterly report. “The $8.4 million in net income in the year-ago third quarter included an $11.9 million gain on restructuring of the company’s senior revolving credit facility.”

In a statement accompanying the report, Enservco executive chairman Rich Murphy said, “Our renewed growth momentum carried into the third quarter as the industry continued to recover from the pandemic impact and steadily rising commodity prices drove increased customer activity and higher utilization rates for our fleet. As in our second quarter, we generated solid growth in all service segments in the third quarter, including hot oiling, frac water heating, acidizing and non-oilfield services.”

Improving conditions in the oil and gas industry are expected to buoy the company in upcoming periods. 

“Rig counts and wells drilled in the third quarter increased by double digits on both a year-over-year and sequential quarter basis, and these favorable tailwinds should help position us to sustain our revenue momentum during our fourth and first quarter heating season,” Murphy said. 

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