Flotek sees Q4 domestic ECT revenue up from Q3
The company said, "As many of our peers and clients have already reported, Q4 domestic completion activity will contract for the energy industry. However, based on what we have seen to date this quarter, we expect that our Q4 domestic ECT revenue will be up sequentially from the Q3 while our international ECT revenue will decline due to the timing and lumpiness of large orders. As a result, we believe that our total ECT revenue will decline in the high-single digit percentage range, sequentially, in the fourth quarter. Within CICT, there are a number of high-margin flavor orders that we expect to occur through year end and into 2019. As such, we anticipate revenues to be up mid-to-high single digits sequentially with adjusted EBITDA margins expanding by a few percentage points in the segment. While we have exceeded our initial expectations on cost reductions, we continue to reduce our cash and non-cash costs across the board. We have put into place further initiatives to drive lower fixed costs and greater operational efficiencies across the organization which should begin to reflect as early as the end of this year as we continue to focus on improved cash flow."