In after-hours trading hours on Friday, shares of designer and manufacturer of drilling tool technologies, Superior Drilling Products Inc. (SDPI) slipped -7.35% to $0.72. SDPI stock lost -4.81% to close at $0.78 in the last trading session. SDPI stock price range was from $0.72 to $0.84. A total of 0.27 million shares of SDPI stock were traded, which was below its daily average of 0.28 million shares over 100 days. In the last five days, SDPI stock has gained 2.25%, while it has lost -3.93% in the last month. SDPI stock has been losing ground since its quarterly report was released.
How did SDPI Stock perform this quarter?
A leading technology company offering cost-saving solutions that drive production efficiencies for the oil and natural gas drilling industry, Superior Drilling develops cutting-edge drilling tools. Drilling tools are designed, manufactured, repaired, and sold by SDPI. As part of SDPI’s drilling solutions, the company offers the patented tool Drill-N-Ream as well as the patented Strider oscillation system. Moreover, SDPI is a manufacturer and refurbisher of polycrystalline diamond compact (PDC) drill bits for an oil field services company.
The SDPI drill tool fabrication facility provides solutions for the drilling industry and other custom products to customers. In order to expand its product offerings and solutions for the oil and gas industry, SDPI intends to leverage its experience in drill tool technology and innovative, precision machining.
Superior Drilling released its second quarter 2021 financial results on Friday, ending June 30, 2021.
Quarterly highlights:
- As market share and market conditions improved, SDPI generated $974 thousand of revenue sequentially, or 40%, over the first quarter.
- With the improving oil and gas production markets, SDPI gained market share year-over-year and sequentially, resulting in improved demand.
- SDPI earned $116 thousand in operating income due to higher revenue and lower expenses.
- Due to the timing of expenses related to the year-end close and the reduction in amortization charges, SDPI’s total operating expenses decreased 3% over the trailing first quarter.
- SDPI recorded a net loss of $67 thousand for the quarter, compared with a loss of $1.1 million for the trailing first quarter.
- Operating income improved substantially, surpassing other expenses, including a loss of $11 thousand on asset disposals.
- The Adjusted EBITDA for SDPI improved materially to $1.0 million owing to increased sales and operating growth, while the Adjusted EBITDA margin increased to 28.2% from the trailing first quarter.
Is SDPI paving the way for growth?
This quarter, Superior Drilling Products (SDPI) gained a large amount of revenue due to both the demand for its DNR well bore conditioning tool as well as its manufacturing capabilities. By enabling drilling innovation, the DNR generates economic benefit. According to SDPI, drillers can drill complex well profiles with their tool and increase their well flow area by drilling with a shorter drill string, thus covering more ground in shorter amounts of time. To support long-term customers’ efforts to provide quality products while advancing their technologies, SDPI is also doubling its volume and product manufacturing for them.
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