Shares of the newly public KLX Energy Services Holdings Inc (NASDAQ:KLXE) shot up Thursday after the US provider of oilfield services reported a surge in its fiscal third-quarter sales on the back of a buzz of activity across all its operating segments.
In its latest quarter, ending on October 31, KLX Energy posted a 38.1% jump in revenue to $123.2 million from the corresponding period last year.
The jump in revenue extended across the country as sales from the company’s Rocky Mountains group grew 34.4% while its Northeast revenues jumped 66.2% and sales from its Southwest segment popped by 22.4%.
Investors responded with enthusiasm to the result, sending KLX Energy shares up by 27.3% to $25.20 in Thursday’s afternoon trading session.
During the quarter, KLX’s management completed the merger of the Aerospace Solutions business of KLX Inc with The Boeing Company and completed the spin-off of the Energy Services business into a public company.
Quarterly achievements gain attention
The company also agreed to acquire Motley Services, a large diameter coiled tubing service provider in the southwestern US, for $148 million.
In another advance, the newly public company has also been partnering with an engineering firm to co-develop a magnesium alloy-based line of dissolvable plugs.
“To date, we have completed extensive field trials in 26 well bores with 520 units in the Permian, Mid-Con and Rockies regions with excellent results,” said CEO Amin J Khoury in a statement.
“Commercialization is currently underway with excellent customer reception.”
The earnings side of the picture looked less impressive, as KLX saw its quarterly loss widen to $9.9 million from a loss of $1.8 million in the year-ago quarter. Stripping out items, however, its earnings came to $0.83 per share.
Outlook in focus
KLX Energy Services expects full-year revenue of $520 million.
KLX Energy is a US onshore provider of oilfield services focused on intervention and production activities for wells. KLX Energy supports its customers from over 35 service facilities located in the key shale basins, including the Permian, Eagle Ford, Rockies, Bakken, Marcellus, Utica and MidCon.
Contact Ellen Kelleher at [email protected]