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DIVERGENT Energy Services Announces the Release of Q3 2020 Financial Results

Nachrichtenquelle: globenewswire
13.11.2020, 14:30  |  101   |   |   

CALGARY, Alberta, Nov. 13, 2020 (GLOBE NEWSWIRE) -- DIVERGENT Energy Services Corp. (“Divergent”, the "Company", or “DVG(DVG: TSX-V) announces the release of its interim financial results for the three and nine months ended September 30, 2020. All amounts are in thousands (000’s) of United States Dollars, unless otherwise noted.

HIGHLIGHTS FOR THE THIRD QUARTER

  • Revenues of $743 compared to revenues of $2,268 during Q3 2019.
  • Net loss of $86 compared to net income of $14 during Q3 2019.
  • Improved working capital though the conversion of $2,000 of current payables into a subordinated, secured promissory note with a four-year term.
  • Issued 13,545,000 commons shares of the Company during the quarter to settle interest obligations on debentures for the period July 1, 2020 to September 30, 2020.

INDUSTRY OUTLOOK

Natural gas markets have begun to stabilize as we near the end of 2020.  As confidence begins to return to the energy industry, demand for the Company’s pumps and related services is expected to increase from the low levels experienced since the start of the second quarter of 2020.  The Company is positioning itself to emerge from a very challenging 2020 and take full advantage of potential opportunities to expand our client base in 2021 with a focus on oil producers and an emerging produced water reclamation market.

FINANCIAL AND OPERATING HIGHLIGHTS – THREE MONTHS ENDED SEPTEMBER 30, 2020

Select Financial Information for the three month period ended September 30, 2020 have been summarized below. Tables contain third quarter results for 2020 and 2019.  Refer to the Company’s unaudited condensed consolidated financial statements and related management’s discussion and analysis (“MD&A”) for a full description.

(All figures in ‘000’s of US dollars except number of shares and per share data, unless otherwise stated)

Unaudited Interim Condensed Consolidated Statements of Net Loss and Comprehensive Loss

  Three months ended
September 30,

 
  2020   2019  
 

Revenue
743   2,268  
Cost of sales (599 ) (1,742 )
Reversal of provision for slow moving inventory 289   -  
Gross profit 433   526  
 

General and administration
(416 ) (472 )
Depreciation and amortization 45   (59 )
Stock based compensation (1 ) (6 )
Results from operating activities 61   (11 )
     
Product development expense -   (6 )
Finance expense (147 ) 31  
Net( loss) income (86 ) 14  
     
Other comprehensive income (loss) being foreign exchange gain (loss) 121   (111 )
Total comprehensive income (loss) for the period 35   (97 )
     
Income (loss) per share    
Net loss – basic and dilutive (cents) 0.00   (0.00 )


Unaudited Interim Condensed Consolidated Statements of Financial Position

  September 30,
 2020
  December 31,
2019
 
 

ASSETS
   
Current assets    
Cash 17   249  
Prepaid expenses, deposits and advances 68   23  
Trade receivables 895   1,652  
Inventories 619   631  
  1,599   2,555  
Non-current assets    
Right-of-use assets 271   488  
Property and equipment 176   251  
Total Assets 2,046   3,294  
 

LIABILITIES
   
Current liabilities    
Accounts payable and accrued liabilities 2,533   4,897  
Current portion of lease obligations 162   270  
Related party loans 15   92  
Government loans 72   -  
Promissory note 195   -  
Interest payable 53   346  
  3,030   5,605  
    Non-current liabilities    
    Lease obligations 103   210  
    Government loans 181   -  
    Debentures 4,123   4,134  
    Promissory note 1,538   -  
Total Liabilities 8,975   9,949  
     
SHAREHOLDERS’ DEFICIT    
Share capital 18,564   17,927  
Contributed surplus 5,799   5,790  
Warrants 141   141  
Accumulated other comprehensive loss (1,296 ) (1,136 )
Accumulated deficit (30,137 ) (29,377 )
Total Shareholders’ Deficit (6,929 ) (6,655 )
Total Liabilities and Shareholders’ Deficit 2,046   3,294  

The Company’s complete set of September 30, 2020 quarter end filings have been filed on the SEDAR website at www.sedar.com and are also available on the Company’s website at www.divergentenergyservices.com.

For Further Information:

Ken Berg, President and Chief Executive Officer, kberg@divergentenergyservices.com

Lance Mierendorf, Interim Chief Financial Officer, lmierendorf@divergentenergyservices.com

ABOUT DIVERGENT ENERGY SERVICES CORP.

Headquartered in Calgary, Alberta, Divergent provides Artificial Lift products and services that are used in the oil and gas industry.  Product lines including Electric Submersible Pumps, Electric Submersible Progressing Cavity Pumps, and the future development of an Electromagnetic Pump technology.

DIVERGENT Energy Services Corp., 2020, 715 – 5th Ave SW, Calgary, AB T2P 2X6, (403) 543-0060, (403) 543-0069 (fax), www.divergentenergyservices.com

FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements, including, without limitation, statements pertaining to anticipated future operational activity levels of Divergent and of a majority of its customers, and statements pertaining to interest payments on the Companys debentures.  All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties, including: the risk that the anticipated slowdown in sales and service of submersible pumps by Divergents customers lasts longer than expected or impacts Divergents revenues more severely than expected, the risk that the COVID-19 pandemic and the low oil and gas price environment cause additional negative effects on Divergents business, the risk that the suspension of trading of the Companys common shares by the TSXV cannot be lifted in a timely manner or at all, and the risk that the Company cannot remedy the outstanding interest payments under the terms of its debenture indenture in a timely manner or at all .  There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information.  A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com.  Forward-looking statements are based on estimates and opinions of management of the Company at the time the information is presented, including expectations provided to Divergent by its customers.  The Company may, as considered necessary in the circumstances, update or revise such forward-looking statements, whether as a result of new information, future events or otherwise, but the Company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.

This press release contains financial outlook information ("FOFI") about prospective revenue reductions, which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs.  FOFI contained in this press release was made as of the date hereof and was provided for the purpose of providing an update regarding an anticipated material reduction in near-term revenue.  Divergent disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law.  Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

(Not for dissemination in the United States of America)


Divergent Energy Services Registered (Old) Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de



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DIVERGENT Energy Services Announces the Release of Q3 2020 Financial Results CALGARY, Alberta, Nov. 13, 2020 (GLOBE NEWSWIRE) - DIVERGENT Energy Services Corp. (“Divergent”, the "Company", or “DVG”) (DVG: TSX-V) announces the release of its interim financial results for the three and nine months ended September 30, 2020. …

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