NGS Compression Rental Revenue Soars

By Mike Brezonick07 August 2019

Natural Gas Services Group Inc. (NGS) reported its second quarter 2019 compression rental income jumped 19% from the same period last year.

Stephen Taylor, president and CEO of the Midland, Tex.-based company, said revenues advanced US$2.4 million to US$13.6 million due to robust demand for high horsepower compression packages.

Taylor said the second period was strong for NGS. “We saw significant sales for the quarter, with the highest adjusted gross margin percentage for that segment since the first quarter of 2018.

“We ended the quarter with nearly US$30 million in cash, virtually zero debt and remain in an enviable financial position when compared to competitors operating in the oilfield services sector.”

Taylor said NGS remains on the lookout to grow its operating portfolio with business opportunities that would be a strategic fit.

NGS reported net income for the second quarter was US$573,000 compared to US$247,000 in the same quarter of 2018 and US$357,000 in the first quarter of this year.

Total revenue for the latest period was US$19.9 million, up from US$18.0 million in the first quarter and US$18.2 million in the second period of 2018.  NGS said the increase was driven by a greater number of units on rent with higher average rental rates.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, CompressorTech² News features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
CONNECT WITH THE TEAM
Mike Brezonick
Mike Brezonick VP, Power Division Tel: +1 262 754 4112 E-mail: mike.brezonick@khl.com
Pete Ballistrieri Sales Manager Tel: +1 262 754 4131 E-mail: pete.ballistrieri@khl.com
CONNECT WITH SOCIAL MEDIA
Latest News
FCI meter designed for gas flow measurement
Designed for gas compression, boilers, clean room air flow, engines and furnaces
Hydrogen Online Conference scheduled for Oct. 8
Event also includes an online exhibition
Olaf Berlien becomes new CEO of gas engine manufacturer INNIO
Current CEO Carlos Lange will join advisory board as planned