Koil Energy Solutions (OTCMKTS:DPDW) Stock In Focus After Recent Development

Anyone who is interested in discovering new companies and stocks needs to do their research well. At the end of the day, one needs to put in a lot of hard work in order to discover new stocks that could be worth tracking. One of the companies that may be worth looking into at this point in time is Deep Down, which is now known as Koil Energy Solutions (OTCMKTS:DPDW). This article is going to give you a closer look into the nature of the company’s business and also provide you with a lowdown on the latest developments that have taken place.

Market Stats

On Monday, DPDW stock ended flat at $0.5895 with more than 10 shares, compared to its average volume of 9.3K shares. The stock moved within a range of $0.5895 – 0.5895 after opening trading at $0.5895.

About The Company

The company is one of the leaders in the energy services industry and is best known for providing subsea equipment as well as support services. The equipment and services are offered to the energy and offshore industries across the world. Koil Energy Solutions claims that it provides highly advanced solutions to complex problems that are faced by its customers in the phase between the energy source and the production facility. The company offers a plethora of services that can often provide to be vital to the smooth running of operations. In addition to that, the highly experienced team at the company can also work on subsea engineering, maintenance projects, installation, commissioning, and manufacturing among others.

Deep Down, Inc. (now Koil Energy Solutions, Inc.) Announces Second Quarter 2022 Results

Yesterday, the company was in the news after it announced its financial results for the fiscal quarter that ended on June 30, 2022. The company announced that in the three-month period it had managed to bring in revenues to the tune of $3.5 million, however, which reflected a 23% drop from the $4.5 million in revenues that it had generated in the year-ago period. The decline in revenues had been brought about by the drop in the number of fixed price contracts.

However, it was somewhat offset by the rise in the number of short-term projects that the company had been involved in. On the other hand, the gross profits for the period stood at $1.5 million and that made up as much as 42% of the revenues of Koil Energy Solutions. In the prior year period, the gross profits had stood at $1.4 million and made up 31% of the total revenues. The rise in gross profits had been brought about by the fact that Koil Energy Solutions spent less on material costs and a drop in the lower margin passthrough service costs.

During the three months that ended on June 30, 2022, the company had incurred operating expenses of as much as $1.5 million, and that worked out to 42% of the revenues. In the prior year period, the operating expenses had been $1.8 million and that had been 40% of the revenues. The company had managed to reduce its expenses through the recording of reserves for doubtful accounts of as much as $0.5 million. It now remains to be seen if the Koil Energy Solutions stock can manage to garner interest from investors or not.

Traders Corner

DPDW stock is trading below the 20-Day and 50-Day Moving averages of $0.58 and $0.62.Moreover, the stock is trading below the 200-Day moving average of $0.63.