Energy and Environmental Services, Inc. (OTC: EESE) has reported its unaudited financial results of operations for the quarterly period ended March 31, 2023. The company’s Q1 2023 results show impressive growth in sales revenues and gross profits despite lower average oil prices for the period and a conservative capital expenditure approach from producers.
Q1 2023 Financial Highlights
EES sales revenues increased by 37.5% from the First Quarter 2022 to $6,051,900 in the First Quarter 2023. Gross profit was up by 29.5% from the First Quarter 2022 to $3,174,000 in the First Quarter 2023. These results are impressive considering the lower average oil prices for the period and the conservative capital expenditure approach from producers.
Operating expenses increased by only 20.4% from the First Quarter 2022 to $2,636,000 in the First Quarter 2023, which reflects a proportionate drop in selling and general and administrative costs. EBITDA was $1,961,900 in the First Quarter 2023 compared to $550,400 for the First Quarter 2022. Net income for the First Quarter 2023 was $1,357,400 compared to $265,500 in the First Quarter 2022. EES net income and EBITDA for the First Quarter 2023 were substantially aided by employee retention credits of $1,015,300.
Capital Resources
As of March 31, 2023, EES had working capital of $7,036,600 versus $5,571,100 for December 31, 2022. Cash provided by operating activities during First Quarter 2023 was $1,395,100 versus cash provided of $353,200 in First Quarter 2022.
Outlook
Despite a slow start to 2023 for the US oil and gas industry, Leon Joyce, CEO of Energy and Environmental Services, Inc., expects higher oil prices later in the year with strengthening demand for their products. Joyce stated that the average WTI price in 2022 was $95 per barrel, while today, it is $72 per barrel. However, market reports indicate a growing Chinese economy will push world demand. The company expects domestic producers to increase investment activity to rates comparable to or higher than 2022. With these expectations, their oil and gas outlook is upbeat, and they anticipate continued improvement in their results of operations.
Opinion
Energy and Environmental Services, Inc.’s impressive Q1 2023 results indicate that despite lower average oil prices and conservative capital expenditure approaches from producers, the company is performing exceptionally well. With sales revenues up by 37.5% and gross profits up by 29.5%, the company’s outlook for the rest of the year is optimistic.
It is encouraging to see that despite the slow start to 2023 for the US oil and gas industry, Energy and Environmental Services, Inc. remains positive about the future. With market reports indicating a growing Chinese economy, world demand for their products is expected to increase. The company anticipates domestic producers will increase investment activity, and they expect higher oil prices later in the year.
Energy and Environmental Services, Inc.’s results for Q1 2023 demonstrate their resilience and ability to adapt to changing market conditions. Their impressive financial results indicate they are well-positioned for future growth, and their positive outlook is a good sign for investors.
Conclusion
Energy and Environmental Services, Inc. has reported impressive Q1 2023 results despite lower average oil prices and conservative capital expenditure approaches from producers. Their sales revenues increased by 37.5% and gross profit increased by 29.5% compared to the same period in 2022. The company’s net income and EBITDA were also substantially aided by employee retention credits. The CEO, Leon Joyce, expressed optimism for the future of the oil and gas industry and expects higher oil prices later in 2023 with strengthening demand for their products.
Overall, Energy and Environmental Services, Inc. appears to be well-positioned for continued success in the energy sector. Their strong financial results and positive outlook reflect a combination of effective management, a solid business strategy, and a commitment to excellence in their products and services. As the energy landscape continues to evolve, EES will undoubtedly play a vital role in driving innovation and progress in this critical industry.
Cheyenne Cox is a news report covering multiple Market and economy News. She is creative and highly professional writer. Cheyenne holds a degree in communication and journalism and has also a Diploma in digital marketing. She belongs to south Africa who has also lived in Europe and is currently based in the US.
