Tesco sees Q3 revenue up sequentially
The company said "While there is some market speculation that U.S. rig count could decline in the second half of 2017, we have not seen strong evidence yet of any significant activity decline by our customers. We have also seen signs of upcoming activity improvements in certain international markets, both in land and offshore. In the Q3 we expect overall revenue to increase sequentially primarily from growth in Tubular Services and new product sales. Cash levels are expected to remain approximately flat over the second quarter ending balance as EBITDA losses are expected to continue to decrease and working capital is reduced from the second quarter levels. As market uncertainty and pricing pressure increases in a lower-for-longer environment, it will be more important to continue to gain market share through technology deployments. As we look ahead to the Q3 and Q4, we see opportunities that have the potential to generate revenue and EBITDA improvements while keeping cash levels near current levels. The approximate $8.4M invested in working capital and capital expenditures in the first half of 2017 positions us to continue to grow revenue in the second half of 2017 and to get closer to our goal of reaching breakeven EBITDA."