Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

News Update


Sand Producer Posts Improved Year-Over-Year 2018 Despite Q4/18 Downturn
News Update

Share on Stocktwits


The depressed fracking sand market impacted this Canadian company during last year's final quarter, but overall it sold more sand and increased revenue in 2018.

Select Sands Corp. (SNS:TSX.V; SLSDF:OTCMKTS) announced in a news release its Q4/18 and full-year 2018 operational and financial results.

The company's full-year results were improved over those of 2017. Overall, Select Sands reported a 2018 net loss of $0.5 million, or $0.01 per share, compared to a net loss of $1.6 million, or $0.02 per share, the previous year. Similarly, adjusted EBITDA was $2.5 million in 2018 and $0.1 million in 2017.

Specifically, the oil services firm sold 20% more fracking and industrial sand in 2018 than in 2017, 363,610 tons versus 303,607 tons. It increased revenue in 2018 by32% to $20.1 million from 2017's $15.1 million. Gross profit grew 59% to $4.6 million in 2018, up from $2.9 million in 2017, reflecting 3.8% gross margin improvement.

As for its Q4/18 results, Select Sands underperformed compared to Q3/18. It reported a net loss of $2.5 million, or $0.03 per share in Q4/18, greater than its net loss of $0.1 million, or $0.00 per share, in Q3/18.

Q4/18 sales of fracking and industrial sand were down quarter over quarter, at 24,897 tons versus 81,626 tons.Q4/18 revenue was $0.9 million for a gross loss of $0.5 million, whereas Q3/18 revenue was $4 million for a gross profit of $0.7 million.

At the end of Q4/18, the company had $4.8 million in cash and cash equivalents, $2.1 million in inventory on hand and $6 million in working capital. These figures were lower than those of Q3/18, which were $5.3 million, $2.6 million and $6.4 million, respectively.

President and CEO Zig Vitols explained in the release that the downturn in Q4/18 resulted from weaker demand for fracking sand, along with explorers and producers in the southern U.S. oil-producing basins using more brown sand instead of Select Sands' Northern White sand.

The latter trend has since reversed somewhat, he added, but the company "will remain diligent in managing our cost profile as we wait for a continued gradual but steady frac sand market recovery, particularly in the demand for Northern White, that we expect to occur through the remainder of 2019."


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Want to read more about Oil & Gas - Equipment and Oil & Gas - Services investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe