Enservco posts growing YoY losses in delayed earnings report

LONGMONT — Enservco Corp. (NYSE American: ENSV), a Longmont-based provider of specialized well-site services to the oil and gas industry that delayed the release of its 2021 annual report to adjust for its utilization of certain deferred tax liabilities, grew its losses last year.

Sales for the fiscal year that ended Dec. 31, 2021, were $15.3 million, down 2% from $15.7 million in the prior year.

“The decline reflected the challenging first quarter of 2021 when commodity prices and rig counts still fully reflected the pandemic and drilling downturn that began in 2020 compared to the more historically typical first quarter of 2020 prior to onset of the pandemic,” the company said in its U.S. Securities and Exchange Commission filing last week.

Net loss for the full year was $8.1 million, or 74 cents per share, compared with a net loss of $2.5 million, or 60 cents per share, in the same period last year.

Still, Enservco officials pointed to improved fourth-quarter results as reason to feel optimistic. 

The company reported an improved net loss of $3.1 million, or 27 cents per share, in the fourth quarter, compared with a net loss of $3.7 million, or 69 cents per share, in the same quarter last year.

“We are encouraged by our sustained growth momentum that saw us close the year with our third consecutive quarter of year-over-year revenue increases and significant growth in all of our service areas, particularly in the more predictable hot oiling business,” Enservco executive chairman Rich Murphy said in a prepared statement. “We are benefiting from increased customer demand driven by higher commodity prices and the addition of new customers. We also have redeployed equipment to more active areas and are expanding our geographic footprint while executing at a high level for legacy and new customers. While activity levels have improved and pricing pressures have alleviated, the drilling and pandemic downturn of 2020 continued to adversely affect our bottom line through 2021.”

Enservco said in its disclosure that it is working to put together its quarterly reports for the first two periods of 2022. 

“We apologize to our stockholders for the delay in our filings and earnings call, but we want to ensure that our amended Form 10-Qs and Form 10-K accurately reflect the appropriate tax treatment that was impacted by the financing completed early in 2021,” Murphy said in April when Enservco announced it would delay its SEC filings. “Our auditors and third-party tax advisors are working diligently to complete these calculations as quickly as possible, and we expect to complete our 2021 filings as soon as practicable.”

The restatements are not related to operating matters and will not affect the company’s reported revenue or operating expenses, the company said in an April press release.

Enservco provides oilfield services across seven domestic oil and gas basins, with customers in Colorado, Montana, New Mexico, North Dakota, Oklahoma, Pennsylvania, Ohio, Texas, Wyoming, West Virginia, Utah, Michigan, Illinois, Florida, New Mexico and Louisiana.

This article was first published by BizWest, an independent news organization, and is published under a license agreement. © 2022 BizWest Media LLC.

on Facebook on LinkedIn