FTK’s segment-wise income
We discussed Flotek Industries’ (FTK) revenue in the previous part of this series. Operating income–wise, FTK’s Energy Chemistry Technologies segment fell 56.6% between 3Q15 and 3Q16. In contrast, its Consumer and Industrial Chemistry Technologies segment’s operating income rose ~41%.
What affected Flotek Industries’ reported earnings in 3Q16?
In 3Q16, FTK’s reported net loss was $2.7 million. This was a sharp decline from 3Q15, when FTK reported ~$1.9 million in net earnings. Year-over-year, FTK’s income deterioration reflects a narrower margin in the Energy Chemistry Technologies and Production Technologies segments. In 2Q16, Flotek Industries reported a net loss of $2.3 million.
In comparison, Schlumberger’s (SLB) 3Q16 net loss was ~$1.5 billion, Baker Hughes’s (BHI) was $2.3 billion, and Halliburton’s (HAL) was $5.6 billion. For more on Halliburton, read Market Realist’s What’s Ahead for Halliburton? In the next part of this series, we’ll look at how dependent Flotek Industries’ business is on the US rig count.