U.S. Silica Sees Sharp Rebound in Industrial

U.S. Silica Holdings of Frederick, MD has reported a 2020 third quarter net loss of US$14.2 million on revenue of US$176.5 million versus a net loss of US$32.6 million on revenue of US$172.5 million in the same period of 2019. The results were negatively impacted by US$3.8 million in costs related to asset impairments, merger and acquisition related expense, plant start-up and expansion costs, facility closure costs and other adjustments.

Overall tons of silica sand sold in the quarter were 2.24 million tons compared with 4.85 million tons in the third quarter of 2019.

Bryan A Shinn, U.S. Silica’s CEO, said, “I’d like to commend our team on delivering outstanding third quarter results despite a challenging though improving, macro backdrop. Our Industrial segment volumes and profits both rebounded sharply as demand in several key end markets improved materially.”

“In our Oil and Gas segment, sand volumes rose 15% and our Sandbox delivered loads surged 74% as industry frac activity and well completions climbed during the quarter. Increased volumes and cost reduction measures including the remeasurement of railcar leases helped drive a 20% sequential jump in segment profitability.”

U. S. Silica’s Industrial and Specialty Products segment generated third quarter 2020 revenue of US$110.1 million, down 8% from the third quarter of 2019. The segment sold 957,000 tons of sand, flat compared with the third quarter of 2019. The segment’s contribution margin at US$42.4 million was down 5% from the third quarter of 2019.

U.S. Silica’s Oil and Gas segment reported third quarter revenue of US$66.3 million, down 73% from the third quarter of 2019. The segment’s sales volume at 1.28 million tons was 67% lower than in the third quarter of 2019. Contribution margin for the segment improved 20% sequentially to US$31.5 million, driven primarily by cost reduction measures.

U.S. Silica’s capital expenditure in the third quarter totalled US$4.5 million, mainly related to growth capital projects at the company’s Millen, GA and Columbia, SC, industrial facilities, as well as maintenance spending and cost improvement projects.

Volume 34, Issue 21

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