Flotek Industries’ revenue growth by segments
Flotek Industries’ (FTK) Energy Chemistry Technologies segment accounted for 61% of FTK’s 3Q16 revenue. Revenue in this segment fell 25% between 3Q15 and 3Q16. Flotek Industries makes up 0.15% of the iShares S&P Small-Cap 600 Value ETF (IJS). The energy sector accounts for 4.3% of IJS.
FTK’s business drivers
- FTK’s CnF (Complex nano-Fluid) sales were more resilient in 3Q16 than in the prior quarter, despite a decline in completion activities in the upstream industry. FTK’s management believes that, in 2017, growth opportunities will improve with higher completion activities.
- In the CICT segment, FTK’s management expects to see strong demand for its flavor compounds, which could provide growth opportunities in the coming periods.
Next, we’ll discuss Flotek Industries’ operating income and what affects its net income.