NGSG’s Rental Revenues Climb 16%
Push Second Quarter Earnings US$2 Million Higher
Natural Gas Services Group of Midland, Texas, said its second quarter revenues rose to US$22 million, up from US$20.3 million in the corresponding period of 2013, due to a 16% gain in rental revenue.
The increase to US$19.5 million from US$16.7 million more than offset a US$1 million drop in compressor sales.
Earnings before interest, taxes and depreciation (EBITDA) were US$10.4 million, compared to US$10.2 million for the similar period of 2013. Net income fell to US$3.4 million from US$3.8 million due to the lower compressor sales and a higher depreciation expense.
“Our 16% year-over-year rental revenue growth continued at a strong pace with gross margins in this product line, and the company as a whole, strengthening again this quarter. Shipments of gas compressors into liquids and oil-shale oriented basins continued at a good rate and our planned fabrication expansion is on track to open in the fourth quarter of this year,” said Stephen Taylor, president and CEO.
“Compressor sales volumes were off a bit this quarter due to some delayed orders, but our backlog is intact and we anticipate that this equipment will ship through the balance of the year.”