Enservco Corporation (ENSV) experienced an incline of 6.87% in the aftermarket. However, the last trading session closed at $1.31 with a decrease of 4.38%.
Second Quarter 2021 Financial Results
ENSV announced second-quarter 2021 financial results on 5th August 2021. Total sales experienced an increase of 44 percent to $3.1 million in the second quarter ending June 30, 2021. Higher commodity costs, greater client activity, and pricing increases for the Company’s hot oiling service were all factors that contributed to the rise.
Moreover, production services revenue came out to be $2.2 million, more than $1.4 million the previous quarter. However, the deficit in the production services category decreased by 73% to $117,000 from $431,000 a year earlier, reflecting stronger revenue and the impact of cost-cutting initiatives. Completion services revenue climbed 13% year over year to $858,000.
Furthermore, the sales, general, and administrative expenses decreased 20% year over year to $1.0 million from $1.2 million. This owed to cost-cutting initiatives and lower staff and stock-based compensation costs, which were somewhat offset by increased public company costs associated with share sales. Last but not least, despite a 44 percent rise in income, total operating expenditures in the second quarter were constant at $6.0 million.
First Quarter 2021 Financial Results
ENSV released First Quarter 2021 Financial Results on 13th May 2021. The report issued by the company states that the total revenue fell to $5.1 million in the first quarter of 2021 whereas the revenue from production services was $1.8 million, down from $3.2 million the previous year. In the first quarter, production services lost $123,000, compared to a loss of $292,000 the year before. Total operating expenditures fell 36% year over year to $7.5 million from $11.6 million in the first quarter. This is owed mostly to decreased finishing services costs. Moreover, the impact of cost-cutting initiatives taken in 2020 resulted in a 43 percent drop in sales, general, and administrative costs in the first quarter, to $1.0 million from $1.8 million.
The company recorded a $2.4 million operational loss in the first quarter, compared to a $2.3 million operating loss in the same quarter the previous year. Furthermore, the first-quarter net loss was $2.2 million less than 23% from the same period the previous year’s net loss of $2.8 million. Reduced interest expenditure in the first quarter of 2021 was largely due to a severe decrease in the Company’s total debt and the suspension of interest expense recording on the Company’s loan agreement after the debt restructuring in the third quarter of 2020.