DistributionNOW on Thursday reported increased sales in its latest fiscal quarter, but earnings and profits declined year-over-year.
The Houston-based distributor of energy and industrial products — no. 14 on ID’s 2023 Big 50 — posted revenue of $588 million in the third quarter of the year, up from $577 million in the same quarter last year.
The company’s operating profit, however, declined from $44 million to $37 million over that span, while net income slid from $41 million to $35 million. The latter metric translated to a drop in diluted earnings from $0.35 to $0.32 per share.
DNOW officials said the company’s earnings through the first nine months of its fiscal year were the strongest since spinning off into a public company nearly a decade ago. President and CEO David Cherechinsky noted that the company’s U.S. Process Solutions business expanded amid increased demand for fluid handling equipment, while its EcoVapor subsidiary saw increased sales of products used in “renewable natural gas decarbonization projects.”
“We believe the U.S. market will resume a growth path next year as customers reset their budgets and energy evolution projects accelerate,” Cherechinsky said in a statement. “In an environment of strong oil prices, which are averaging near $80 over the last 12 months, we see support for growth in 2024.”
