OKLAHOMA CITY, May 15, 2023 /PRNewswire/ — Energy and Environmental Services, Inc. (OTC: EESE) today announced its unaudited financial results of operations for the quarterly period ended March 31, 2023.
“We have begun 2023 with strong results. Our sales revenues are up 37.5% over the first quarter 2022. Our gross profit was up 29.5% over the first quarter 2022. We posted these results despite lower average oil prices for the period and a conservative capital expenditure approach from producers.” said CEO Leon Joyce. “We expect higher oil prices later in 2023 with strengthening demand for our products,” added Joyce.
Q1 2023 Financial Highlights
- EES sales revenues increased $1,651,300 or 37.5% from $4,400,600 for the First Quarter 2022 to $6,051,900 in the First Quarter 2023. Gross profit was up $723,800 or 29.5% from $2,450,200 in the First Quarter 2022 to $3,174,000 in the First Quarter 2023.
- Operating expenses increased by only $447,300 or 20.4% from $2,188,700 in the First Quarter 2022 to $2,636,000 in the First Quarter 2023, which reflects a proportionate drop in selling and general and administrative costs.
- EBITDA was $1,961,900 in the First Quarter 2023 compared to $550,400 for the First Quarter 2022.
- Net income for the First Quarter 2023 was $1,357,400 compared to $265,500 in the First Quarter 2022. EES net income and EBITDA for the First Quarter 2023 were substantially aided by employee retention credits of $1,015,300.
Capital Resources
As of March 31, 2023, EES had working capital of $7,036,600 versus $5,571,100 for December 31, 2022. Cash provided by operating activities during First Quarter 2023 was $1,395,100 versus cash provided of $353,200 in First Quarter 2022.
Outlook
Joyce stated, “The US oil and gas industry has been slow to engage in 2023. The year 2022 had an average WTI price of $95 per barrel and today WTI is $72 per barrel. But market reports indicate a growing Chinese economy will push world demand. We expect domestic producers to increase investment activity to rates comparable to or higher than 2022. With these expectations, our oil and gas outlook is upbeat, and we anticipate continued improvement in its results of operations.”
About EES
Energy and Environmental Services, Inc. (OTC: EESE) based in Edmond, Oklahoma, participates in the oilfield chemical, anti-corrosive coatings and biotech industries. EES was established in 1991 and management has over 200 years of combined experience in blending, manufacturing and packaging custom liquids and solid chemicals for the oil and gas, farm and ranch, and agricultural industries. Additionally, EES has expanded to manufacture coated oil and gas pump barrels, OMRI-certified liquid fertilizer, and other products and applications for specialized anti-corrosive coatings, and enzyme system technologies. Please visit the company’s website at www.eesokc.com.
Safe Harbor for Forward-Looking Statements
Certain statements contained in this press release are forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause Energy and Environmental Services actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Except as required by law, Energy and Environmental Services expressly disclaims any intent or obligation to update any forward-looking statements.
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SOURCE Energy and Environmental Services, Inc.
