The announcement of financial results often brings a company into sharp focus among investors, and hence, it is perhaps likely that Koli Energy Solutions Inc. (OTC:KLNG) would come into focus today. Yesterday, the company, specializing in deepwater distribution and production equipment and services, announced its financial results for the fiscal quarter and year, which ended on December 31, 2023.
In the three-month period ending on December 31, 2023, the company reported revenues of $4 million, reflecting a year-on-year rise of 11% from the $3.6 million that had been generated in the prior-year period. The revenues for the full year came in at $15.3 million, which worked out to a rise of 18% from the revenues of $13 million generated in the full fiscal year of 2022. The boost in yearly revenues had been primarily brought about by a rise in the number of product-oriented fixed-price contracts coupled with a slight rise in project work that used the company’s rental solutions and support services.
Koli Energy Solutions announced that it had made a gross profit of $0.7 million in the fourth quarter, which was 17% of total revenues. In the prior-year period, the gross profit had been $1.5 million, and that proved to be 42% of total revenues. The gross profit for the full fiscal year was $4.9 million, which made up 32% of revenues. In the previous fiscal years, the company’s gross profit had been $4.7 million, and that made up 36% of the revenues.
The company noted that the decline in gross profit margin was a direct function of the higher costs of materials that had been needed for some projects that had been previously priced lower owing to a strategic decision from Koli Energy management last year.
