FORT WORTH, Texas (AP) _ FTS International Inc. (FTSI) on Tuesday reported second-quarter earnings of $103.6 million, up from $78.7 million in the first quarter.
Revenue was $493.3 million, up from $467.5 million in the first quarter
On a per-share basis, the Fort Worth-based company said it had profit of 95 cents.
FTSI completed 9,356 stages during the second quarter of 2018, or 334 stages per active fleet. This compares to 8,152 stages in the first quarter of 2018, or 296 stages per active fleet. The higher efficiencies drove annualized adjusted EBITDA per fleet back above $20 million per average active fleet.
Average active fleets during the second quarter of 2018 were 28, up from 27.5 in the first quarter of 2018.
The company reported that certain of its customers reduced their completions activity going into the third quarter due to changes in their capital budgets and higher than expected completions efficiencies. As a result, the company has decided to reduce its active fleets and currently expects to average 24 fleets in the third quarter.
“Due to temporary reductions in activity levels by our customer base, we face increased uncertainty in the second half of 2018 in terms of pricing and utilization,” said Michael Doss, CEO in the news release on the results. “However, recent conversations with both existing and target customers indicate they are gearing up for a strong start to 2019 and even the fourth quarter of this year, and we will remain ready. Despite these near-term headwinds, we will continue generating substantial cash flow and reducing our net debt. We have repeatedly demonstrated our fiscal discipline and ability to react quickly to changing conditions and will continue to do so.”
Capital expenditures were $28.5 million for the second quarter of 2018. Due to changes in the company’s fleet activation schedule, it now expects total capital expenditures in 2018 will range from $105 million to $115 million, a $30 million reduction from previous estimates.
The quarter’s results fell short of Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1.04 per share.
The provider of hydraulic fracturing services posted revenue of $493.3 million in the period, which also missed Street forecasts. Three analysts surveyed by Zacks expected $528.9 million.
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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on FTSI at https://www.zacks.com/ap/FTSI