U.S. Silica surges after smaller than expected Q4 loss

Feb. 25, 2020 8:58 AM ETU.S. Silica Holdings, Inc. (SLCA)SLCABy: Carl Surran, SA News Editor
  • U.S. Silica (NYSE:SLCA+10.8% pre-market after reporting better than expected Q4 results and saying it sold a record 15.1M tons in its oil and gas segment during 2019.
  • On an unadjusted basis, U.S. Silica posted a Q4 net loss of $292.9M, including $363.7M in impairments due to changes in customer demand, compared with a net loss of $256.1M in the prior-year quarter.
  • U.S. Silica says overall tons sold of 4.2M during Q4 fell 13% Q/Q and 9% Y/Y, but adjusted EBITDA of $73.6M for the quarter increased 26% Q/Q and 8% Y/Y, and Q4 contribution margin of $107.1M improved 13% Q/Q and 8% Y/Y.
  • U.S. Silica says it continues to optimize its logistics network by eliminating sub-optimal shipments and exiting high cost transload sites while renegotiating transload fees and rail rates.
  • The company forecasts proppant demand will increase ~5% in 2020 from 2019 and expects SandBox pricing pressure will persist but not worsen during the year.
  • U.S. Silica expects to keep its 2020 capital spending in the $30M-$40M range.

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