Resized DNOW Increases Revenue As Lost Profit Approaches Breakeven Point

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Petroleum products distributor and energy services provider NOW Inc. – which significantly reduced its business and footprint between late 2019 and early 2020 – released its second quarter 2021 financial results on Tuesday, showing so much return. expected year-over-year sales growth. , while sequential sales continued to grow strongly and the company’s net loss narrowed to near breakeven.

The Houston-based company, which does business at DistributionNOW, reported total second-quarter revenue of $ 400 million, up 8.1% year-on-year and 10.8% from the first. trimester.

The company said digital revenue made up 43% of SAP revenue.

NOW had second quarter gross profit of $ 85 million on a 21.3% margin, up from $ 68 million and 18.4% a year earlier and $ 75 million and 20.8% in the first quarter. The company’s second-quarter operating profit was stable, which was well above an operating loss of $ 29 million a year earlier and an operating loss of $ 8 million in the first quarter. The company reported a net loss of $ 2 million in the second quarter, a marked improvement also from a loss of $ 30 million a year earlier and a loss of $ 10 million in the first quarter.

NOW has no long term debt.

“I am encouraged by the stronger than expected performance this quarter, driven by sequential revenue growth of 11% and record gross margins, as the impact of our strategy produced gains on both top line business and bottom line, ”said David Cherechinsky, NOW President and CEO. “With total liquidity of $ 528 million and zero debt, we are uniquely positioned to grow organically and capitalize on promising inorganic opportunities.”

Geographically, the United States accounted for 74% of second quarter sales; Canada had 12.8 percent; and International had 13.3 percent. US revenue increased 13.8% year-over-year and 17.5% from the first quarter, with energy accounting for 80% of revenue and process solutions 20%.

Looking ahead, NOW expects sequential Q3 revenue to improve by the average number.

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