Shares of Aveda Transportation and Energy Services Inc. (TSX-V:AVE) are coming down from their intraday high, but holding gains after Tuesday evening releasing results from the second quarter that showed sales rocketed upward during the April-June stretch.
The stock has been pounded along with so many others in the energy space, even against the backdrop of record revenue in the first half of the year.
From a high of $1.23 in January to Tuesday's closing price of 33.5 cents, Aveda has lost 78% of its value to a market capitalization under $20 million.
The Calgary-based company that holds itself to be the largest dedicated rig moving company in North America generated record revenue of $52.1 million during the second quarter, crushing the year prior's quarter of $8.9 million. It was also the second straight quarter of record high revenue, after posting $40.96 million in Q1.
Aveda's president and CEO Ronnie Witherspoon noted that 90% of revenue was generated in the U.S., even as the industry resets as companies learn to cope with stubbornly low oil prices. Amid the reset, rig count is growing.
Baker Hughes said Friday that 949 rigs were exploring for oil and natural gas last week, down by five from a week earlier, but up from only 481 a year earlier.
Net loss for the quarter was shaved by $8.5 million to $1.3 million from $9.8 million in Q2 2016.
Aveda spent to grow its market footprint. New terminals were opened in Casper, Wyoming and Midland, Texas. Expectations are that the new Texas terminal will be adding to revenue this quarter.
For the first half of 2017, the company posted record revenue of $93.0 million, up from $20.9 million in the first half last year. Net loss for the first six months came in at $4.7 million, compared to a net loss of $20.1 million during the same period in 2016.
After closing at 33.5 cents Tuesday, shares came out of the gate to print as high as 40 cents in Wednesday morning action, but have since chilled out, slipping to 35 cents for a gain of 4.5% early in afternoon trading.
