Natural Gas Services up after reporting Q3 results

Shares of Natural Gas Services Group are up $2.11, or 15%, to $16.02 in Wednesday morning trading after the company reported revenue for the three months ended September 30, 2023 increased 42.3% to $31.4M from $22.0M for the three months ended September 30, 2022. This increase was due primarily to an increase in rental revenues. The company reported net income of $2.2M, or 18c per basic share, as compared to a net loss of $80,000 in the third quarter of 2022 and net income of $504,000 in the second quarter of 2023. Commenting on the quarter, Stephen Taylor our Chairman and Interim CEO, added: “We had a very successful third quarter. Our total revenue increased over 16% from the prior quarter with a year over year increase of 42%. These increases were lead by rental revenues that grew by $3.6M, or 15%, sequentially and $9.1M, or 49%, when compared to last year’s third quarter. Sales and Aftermarket Services revenue, combined being about 12% of total revenue, grew sequentially by approximately $0.8M or 28%. Between the second and third quarters of this year, total gross margins grew by 14%. From the prior quarter, SG&A declined by over $2M or 41% and operating income was up almost six times to $4.9M. Sequential net income increased by over three times from the prior quarter and EBITDA grew 19% to $11.8M. In the comparative year over year periods we saw similar growth dynamics and cost savings. Our 2023 capital program is proceeding as planned and, as we experienced in the last quarter, is continuing to show exceptional and positive financial impact.”