Layne finally catches a break as Q1 losses narrow
Published June 15th, 2017
Layne Christensen finally seems to have caught a break, as its shares jumped by more than 16% overnight on the back of Q1 results which saw the company more than halve its net loss on continuing operations to $3.4 million, albeit on reduced revenues of $111.5 million.
Despite reduced demand for agricultural drilling services in the western US as a result of winter rainfall, the company is already benefitting from increased drilling activity by energy producers, and is constructing a high-capacity water pipeline and supporting infrastructure in the Delaware Basin in Texas.
“Based upon industry forecasts of longer lateral lengths and increasing drilling activity, we expect water usage within the energy sector to more than double over the next two years,” said CEO Michael Caliel in a statement.
The Q1 numbers followed an extremely disappointing fourth quarter, and showed significant sequential quarterly improvement in EBITDA within the Water Resources division.