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What Affected Flotek Industries’ Earnings in 4Q16

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Nov. 20 2020, Updated 4:20 p.m. ET

FTK’s income by segment

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What affected Flotek Industries’ earnings in 4Q16?

In 4Q16, FTK’s reported net loss was ~$14 million—a sharp decline from 4Q15, when FTK reported a ~$1.4 million net loss. Year-over-year, FTK’s income deterioration reflects a lower margin in the Energy Chemistry Technologies and Production Technologies segments. Compared to 3Q16, when Flotek Industries reported a net loss of $2.7 million, the 4Q16 reported earnings declined further.

FTK’s net earnings were affected by:

  • an $18 million net loss from discontinued operations of the Drilling Technologies and Production Technologies segments in 4Q16
  • a $12.7 million gain from a legal settlement related to the disgorgement of potential short-swing trading profits

Net earnings for FTK’s peers

Superior Energy Services’ (SPN) net loss was ~$166 million while Tidewater’s (TDW) net loss was $296 million in 4Q16. McDermott International’s (MDR) net income was $1.8 million in 4Q16. Read more on Tidewater in Market Realist’s Hot Water for Tidewater? Inside the Fiscal 3Q17 Earnings.

Next, we’ll discuss Flotek Industries’ debt.

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