Koil Energy Revenue Surges 78% to $9.2M in Q2

Koil Energy Solutions (KLNG) reported $9.2 million in second-quarter revenue Wednesday, a 78% increase from a year earlier. The subsea equipment and services firm posted a 12% EBITDA margin for the three months through June 30, CEO Erik Wiik said on the earnings call.

The results mark the company's highest quarterly revenue in at least five fiscal periods. Wiik cited "strong momentum across the subsea industry" as a driver. Koil makes products for deepwater wellheads and control systems. The company has been winning work tied to Gulf of Mexico and international projects.

Walter Schenker of MAZ Capital Advisors, the only analyst on the call, asked whether any single project accounted for a disproportionate share of the quarter's growth. Wiik said the revenue was spread across multiple contracts. The pipeline for the second half of the year remained "strong," he said.

Kurt Keller, the company's CFO, did not provide a separate outlook or guidance update beyond the numbers in the press release. The company filed its full financial statements with the SEC earlier Wednesday.

Wiik described the performance as "record financial performance quarter after quarter." The company posted revenue of $5.2 million in the year-ago quarter, meaning the latest print added $4 million in a single year. Wiik said the growth reflects deeper spending by offshore oil and gas producers on subsea infrastructure. He said the company is gaining traction with operators.

The stock has been volatile over the past year while the company scaled up from a smaller revenue base. The second-quarter print represents the highest quarterly revenue in at least the last five fiscal periods. Koil's forward-looking statements carry the standard SEC caution against undue reliance. The company is not revising any prior guidance on this call.