National Energy Services Reunited Corp. (NESR), a national, industry-leading provider of integrated energy services in the Middle East and North Africa (MENA) and Asia Pacific regions, has seen its revenue for the second quarter of 2019 hit $160 million, growing 22% year-over-year.
Reporting its financial results for the quarter ended June 30th, 2019, it emerged that the Company had a net income for the second quarter of 2019 totaling $11.4 million as compared to a net loss of $5.5 million for the second quarter of 2018.
“We are very delighted with our outstanding results this quarter,” commented Sherif Foda, Chairman of the Board and CEO of NESR.
“We celebrated the first-year anniversary of the Company in June and it is amazing how much has been achieved in such a short time. In this quarter alone, along with the refinancing of our debt facility at very favorable terms, we have secured and expanded our core contracts in Saudi Arabia for more than five years. We continue to make inroads in new countries like Bahrain as we did earlier in Kuwait and Chad. With these and all of the incremental contracts we have won over the last year, we are in a very strong position to kick off the remaining part of the year and the foreseeable future,” he added.
“As we have been continuously emphasizing since last year, the MENA region will be at the forefront of the international recovery and spending will continue to grow. This is now being recognized with broad market acceptance. We believe that as the National Champion of the region, we are uniquely positioned to capitalize on this ongoing activity growth,” Mr. Foda continued.
“We are presently growing at more than double the rate and we believe we can further accelerate this growth in the coming quarters with the commencement of several of our previously announced and upcoming projects. We are proud to be from the region and aspire to continue to be key partners to our customers who share our vision of creating long-term sustainable In-Country Value,” he said.
Total debt as of June 30th, 2019 is $366.5 million with $5.3 million of such debt classified as short-term. Working capital for the Company totaled $229.7 million as of June 30th, 2019. Net debt totaled $296.9 million as of June 30, 2019.
Net debt has increased by $19.7 million since December 31st, 2018 to fund working capital growth as well as a consequence of a slowdown in collections in some countries. While collections are approximately $35.0 million below the prior year run rate, we expect collections to improve during the second half of 2019.
Founded in 2017, NESR is one of the largest national oilfield services providers in the MENA and Asia Pacific regions. With over 3,700 employees, representing more than 40 nationalities in over 15 countries, the company helps its customers unlock the full potential of their reservoirs by providing production services such as cementing, coiled tubing, filtration, completions, stimulation and pumping, and nitrogen services.