Energy services leader Deep Down, reported results for its year ended December 31, 2021. The company is a specialist in deepwater production and distribution equipment and services,
Financial results
Firtstly, Deep Down’s revenues for the three months ended December 31, 2021, increased 49 percent to $5.2 million; compared to $3.5 million for the three months ended December 31, 2020.
In 2021, Deep Down experienced an increase in bidding activity and execution of contract awards as operators mobilized to complete a backlog of projects, especially in a commodity price environment that strengthened as the year progressed.
Charles Njuguna, Deep Down’s CEO.
Secondly, full-year 2021 revenues increased 33 percent to $17.2 million; compared with $13.0 million in 2020; due to an increase demand for our subsea equipment, support services, and rental solutions.
The Company received an order at the beginning of 2021 for the rental of one of our two carousels that are suitable for large umbilical or cable projects. In addition, we received a contract award for the rental of our second carousel and associated umbilical spooling services in the fourth quarter of 2021.
Charles Njuguna.
Thirdly, gross profit for Q4 2021 was $1.9 million; compared to Q4 2020 gross profit of $1.4 million, or 39 percent of revenues. Gross profit for 2021 was $5.8 million; compared to 2020 gross profit of $4.9 million, or 38 percent of revenues.
The growth of our business remains a top priority and managing cash flow and preserving liquidity remains of critical importance. We continue to experience an increased level of bidding and project activity, and we are confident our streamlined operations and continued focus on our core strengths will enable us to be the primary choice for our customers.
Charles Njuguna, Deep Down’s CEO.
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Energy services leader income
Also, the operating expenses were $1.3 million, in Q4 2021; compared to $1.2 million, or 35 percent of revenues, in Q4 2020.
Besides, the full-year 2021 operating expenses were $6.1 million, or 36 percent of revenues; compared to $11.0 million, or 84 percent of revenues, for the full-year 2020.
Moreover, the Company recorded net other income of $2.9 million during the full-year 2021; which includes $2.2 million from the forgiveness of its two PPP loans and $0.7 million from employee retention credits claimed under provisions of the Coronavirus Aid, Relief, and Economic Security Act.
In addition, Deep Down reported a Q4 2021 net profit of $1.1 million, or $0.09 per diluted share; compared to a Q4 2020 net profit of $0.1 million, or $0.01 per diluted share.
The Company reported a 2021 net profit of $2.3 million, or $0.19 per diluted share; compared to a net loss of $6.1 million, or $0.48 loss per diluted share, in 2020.
Finally, Deep Down reported a modified EBITDA of $0.7 million in 202; compared to negative modified EBITDA of $0.1 million in 2020. The increase in modified EBITDA was primarily due to increased revenues for 2021 as compared to 2020.
About Deep Down, Inc.
Deep Down is a leading energy services company; offers subsea equipment and support services to the world’s energy and offshore industries.
The company provides innovative solutions to complex customer challenges presented between the production facility and the energy source.
The services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads, and related services.
Additionally, Deep Down’s team can support subsea engineering, manufacturing, installation, commissioning, and maintenance projects located anywhere in the world.
More about Deep Down. (Koil Energy)
