CSI Compressco LP’s operating fleet grew to 1,017,452 hp (759 MW) during the first quarter of 2019, surpassing a million for the first time. Utilization was 87.2% up from 84.2% a year ago.
The company reported a net loss of US$12.5 million, compared to a loss of US$3.7 million in the fourth quarter of 2018 and a loss of US $15.7 million in the first quarter of 2018. Revenues were US $103 million versus US$138 million for the fourth quarter and US$85 million a year ago.
President Owen Serjeant said the partnership had expected a weak first quarter due to the timing of shipments and completion of overhauls on clients’ units. He said the equipment sales backlog was a “healthy” US$94 million on Mar. 31.
“While some of our customers are taking a temporary pause from ordering new equipment to build out their infrastructure, we expect the rate of order intake to pick up substantially in the third and fourth quarters,” Serjeant said. “As the year progresses, we expect our order book to fill out to support our 2020 equipment sales.”
Serjeant said the shortage of large-horsepower equipment has enabled the partnership to deploy packages at the highest monthly rates in its history. “Simply put, we will not take any projects that do not produce at least 20% return on capital.
“In summary, the compression industry is in great shape and demand is strong. Nothing in this industry has changed since the beginning of 2018. Based on the current outlook we don’t expect this industry to slow down anytime soon.”