Deep Down, an oilfield services company, reported net income of approximately $1.0 million, or $0.06 per diluted share for the quarter ended September 30, 2016, compared to a net loss of $0.6 million, or $0.04 loss per diluted share for the third quarter of 2015.
Revenues for the quarter were $9.2 million compared to revenues of $6.1 million for the quarter ended September 30, 2015. According to Deep Down, the increase of just over $3.0 million is a result of the start of procurement and manufacturing activities on several offshore projects that were delayed in prior quarters.
At September 30, 2016, the company reported working capital of $14.6 million, including cash of $6.7 million.
Ronald E. Smith , CEO, stated: “More than two years following significant decreases in oil prices, the industry has adjusted to the new normal of lower prices. As companies continue to adapt, the industry is transitioning towards focusing on the total cost of a project, rather than simply pushing for reduced prices.
“This transition is providing unique opportunities for us, as we assist our customers through their project execution strategies. We are also pursuing multiple opportunities where we seek to leverage our core technologies in non-traditional areas of the energy industry, as well as providing innovative solutions for emerging segments of the oil industry.
“While we have seen a reduction in our backlog from recent historic highs, our cost rationalization efforts continue to bear fruit, resulting in as strong a balance sheet as we have ever had.
“We intend to continue adjusting our operations to best serve our customers’ needs.”