NP still losing $$. Fluids margin was 3.8%, not even enough to cover corporate op-ex. More excuses, Gulf not carrying their weight, blah blah blah. BUT we are positive cash flow. That’s the ONLY bright spot for PH. Oh yeah we bought a toilet paper company Kleanwipe!!!!
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So what you are saying is NP can’t “differentiate “ themselves? Imagine that NP is the Wally World of mud companies😂😂😂
Look at margins in drilling fluids since entering this business. Working for S Oil out of Fourchon. Very simple, low bid gets most of work. Not rocket science work. When working for E, S, Chev price is king. End of story. And you must keep work ongoing to try to justify huge fixed cost expansion expense.
How is the completion fluids working out?
NP has as much chance making double digit margins in q4 as they do turning a profit in Brazil. Nada. Ain’t happening.
US rig count down to 822 rigs ( down 8 rigs for the week). Say (assume) loss of 5 rigs per week for rest of year (been worse than that for last 2 months) means starting 2020 with apprx 775-780 rigs working. And nr mgt says they are going to get margins in fluids back to middle or high single digits this Q.
Honestly, he should have been given his walking papers in 2014 when he MADE THE ULTIMATE STUPID DECISION to hire PV to run drilling fluids AND FOUR KEY PEOPLE made the Final Decision to walk out the door the next year rather than stay with pv as prez. P was bad enough already but PV was the straw that broke the camel's back. And everyone knew the bod was completely unqualified and would just sit back and watch and draw their $$$ and free stock.... It took nearly 5 years for the pv saga to play out BUT Anyone with an ounce of sense knew this was a COMPLETE DISASTER IN THE MAKING from the Get Go , except ph ( the ultimate leader) and bs. btw, p see the Carlton Woods Lot is STILL For Sale after all this time.. When you drop the price about $300 -350K you might see some interest. Just because one pays $800K for dirt does not mean it is worth that especially when the Montgomery County appraisal district values it at $500K. And AFTER Years of paying property taxes and maintenance fees . But i just don't get the concept, I suppose. Like in the ongoing nr fluids way, buy high and sell low. btw, the lot decision to buy was made in 2014, also. So Zero for 2 on these 2 decisions in 2014. Buying lots in 2014 ?, the start of the latest oilfield contraction . Excellent move and great timing- yeah right.
Jeez Paulie, why didn’t you discuss the following: increased debt, reduced assets, and the sale of $7m of assets. Your Q3 loss would have been MUCH more substantial without that asset sale to prop up your financials. How about that whopping $1.2m sales in Brazil for the ENTIRE quarter? Face it, without mats you are experiencing hurricane headwinds in your organization. 3.8% fluids margin is laughable. Honestly, your head should be on the chopping block
How this stock is staying above $6 is beyond me.
Mister Mud. Problem IS @ nr you have NO ONE in Upper MGT who (1) Knows Anything about the Mud business and/or (2) the concepts you are talking about. Period. the end.
It’s been my experience that “Houston based mud companies” have screwed up any regional mud company (that they bought). Reasons: Houston is out of touch with reality, they get away from the low overhead ~ high margin formula that regional companies were/are successful at. Complete lack of control with non revenue producing personnel (Corporate, HR and IT) and more importantly, they don’t realize how important your cost of goods are. Many times you make your most money buying your product ~not just selling it. I have been a part of several successful mud companies that routinely turned 70% gross and netted 30%. Timing is important, but it does happen. Most importantly, regional mud companies make their money off relationships ~ rather than low bid while knowing what works best in their respective region. None of this is “Strategy” just tried and true success.
Fluids is a low margin business even in good times. Lots of competition. If I was you guys I would be happy they are willing to accept lower margins right now to keep work instead of just shutting it down and sh– canning you.
Fluids President 1st report card: Big fat F. Declining revenues, pathetic margins and way too much fat on this hog.
So much for his “strategizing and success”.
Analysts had been steered to $.08 cents per share profit for nr but in reality was $.02 per share loss. Fluids revenues down $20M from Last Quarter ( with HORRIBLE) giveaway margins. 3.9 % margin for Fluids vs 20% for Mats. Mats has 1/3 the revenue of fluids side but makes almost twice the operating income of the fluids side. Corporate office expense only down apprx $1m this Q to last Q. Total net Income for this 9 months only .05 cents /share vs .23 cents/share for nine months of 2018. As p says–"Bonus Time" for execs. Especially for, the new guy, whose division did So Well.