Solaris Annual Profit Up

Solaris Oilfield Infrastructure Inc. reported a net income of $7 million for the fourth quarter and $39 million for the full year 2023.

The company said in a media release the fourth quarter income was below the $8 million reported for the third quarter of 2023 as well as the $8 million reported for the corresponding quarter of 2022.

Revenue for the period was $63 million, down 9.0 percent from the third quarter 2023 and down 25 percent from the fourth quarter 2022. The sequential decrease in revenue was driven by decreases in lower-margin ancillary last-mile logistics services activity and frac crews followed, it said.

However, looking at the full year of 2023, net income ticked above the $34 million reported for 2022. Revenue was $293 million for the full year 2023, which was down 8.0 percent from 2022. The sequential decrease in revenue was driven by a decrease in lower-margin ancillary last-mile logistics services activity, partially offset by an increase in Solaris system deployments, Solaris said.

“2023 was a strong year for Solaris on multiple fronts. We generated positive free cash flow, raised our dividend per share twice, returned $47 million to shareholders through dividends and share repurchases and grew Adjusted EBITDA by 15 percent from the prior year as we built a fleet of new equipment and deployed more Solaris systems on the well sites we service”, Chairman and Chief Executive Officer Bill Zartler commented.

Adjusted EBITDA for the full year 2023 was $97 million, Solaris said.

“Looking to 2024, we expect to generate significantly higher free cash flow as we harvest cash from the organic investments we made over the last couple of years. We believe this additional cash flow should support continued shareholder returns and maintain our healthy balance sheet, while creating optionality in our long-term strategy for capital allocation, including organic and inorganic investments,” said Zartler.

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