NGS Compression Rental Revenue Soars
07 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.