Flotek Industries Inc (NYSE:FTK) announced lower-than-expected second-quarter results, sending its shares sinking double digits Wednesday afternoon.
The chemical company reported a net loss of US$1.30 per share on revenue of US$59.1mln compared with a net loss of US$0.07 on revenue of US$85.2mln in the previous year’s second quarter.
The Texas-based company reported an adjusted loss of US$0.34, falling below estimates of a net loss of US$0.07.
Flotek develops specialty chemicals for clients in the energy, consumer industrials and food and beverage industries.
Shares of Flotek sank more than 20% to US$2.26 in Wednesday afternoon trading.
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The company was dealing with the loss of a major client while also facing disruption in the citrus market due to disease and hurricane weather.
The drilling fluid it supplies to the energy sector is made using non-toxic citrus oil from orange peels, so the company is heavily impacted when the citrus crops have a rough season.
“We recognize that these challenges have been disappointing for our stakeholders, but are being met and are being addressed by our leadership team, board and employees," said CEO John Chisholm in the company’s press release.
For the year ahead, the company expects revenue from its consumer and industrial chemistry technologies segment to increase in the mid-single digits sequentially.