KOIL Energy (KLNG, Financial) reported first-quarter revenue of $5.25 million, a decrease from the $5.79 million recorded in the same period last year. The company's leadership noted that, following a year of exceptional growth, the recent results did not meet their expectations. The adjustment to a higher cost structure, implemented to match last year's increased revenues, failed to adequately anticipate the unpredictability of fixed-price contracts. Despite this setback, KOIL Energy remains dedicated to fostering steady growth and ensuring long-term shareholder value.
KLNG Key Business Developments
Release Date: April 15, 2025
- Q4 Revenue: $6 million, a 48% increase year-over-year.
- Q4 EBITDA: $1 million, resulting in a 16% margin.
- Full Year 2024 Revenue: $23 million, a 48% increase year-over-year.
- Full Year 2024 Adjusted EBITDA: $3.5 million, improved from a loss in 2023.
- Free Cash Flow: Approximately $1.4 million generated in 2024.
- Year-End Cash Balance: $3.4 million.
- Q4 Gross Margin: 40%, consistent with previous quarters.
- Q4 Selling, General and Administrative Expenses: $1.7 million.
- Q4 Net Income: Approximately $537,000, improved from a net loss of $890,000 in Q4 2023.
- Full Year 2024 Gross Margin: 38%, up from 32% in 2023.
- Full Year 2024 Net Income: $2.6 million, improved from a net loss of $1.6 million in 2023.
- Diluted Earnings Per Share: $0.21, compared to a loss of $0.13 per share in 2023.
- Year-End Working Capital: $5.7 million, including $3.4 million in cash.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Koil Energy Solutions Inc (KLNG, Financial) achieved a 48% year-on-year increase in revenue for 2024, reaching $23 million.
- The company reported a historic record in profitability with an adjusted EBITDA of $3.5 million in 2024, compared to a loss in 2023.
- Koil Energy Solutions Inc (KLNG) generated approximately $1.4 million in free cash flow, enhancing its liquidity position.
- The gross margin for the full year improved to 38%, up from 32% in 2023.
- The company secured significant contracts, including a major project in West Africa and advanced maintenance services, contributing to its growth strategy.
Negative Points
- Koil Energy Solutions Inc (KLNG) identified a material weakness in its internal controls related to equity accounting, though it did not materially impact financial results.
- Selling, general, and administrative expenses increased slightly to $1.7 million in Q4, reflecting higher staffing costs.
- Revenue fluctuations may occur in upcoming quarters due to potential changes by clients, despite improved supply chain performance.
- The company does not report backlog figures, limiting visibility into future revenue streams.
- Tariffs on raw materials like carbon steel and super duplex steel pose a risk, although mitigated by contract clauses.
