Exterran Corp. said it will determine what to do with its compression fabrication business by the end of the year.
“Our goal is to shift from primarily fabricating oil and gas equipment to providing complete systems and process solutions in energy and industrial applications and ultimately become a higher-margin, higher-return, less-cyclical business,” said Andrew Way, president and CEO.
“We are now considering options for our U.S. compression fabrication business. This is a business that exacerbates our cyclicality, both in terms of revenue and margins. Our goal is to pursue a strategy that will meaningfully reduce the dilution this product has on the remainder of our business.”
Way said compression services will continue to be an integral part of Exterran’s global business. He added, “We are committed to supporting our customers, employees and other stakeholders throughout the process.”
Houston, Tex.-based Exterran expects to finish consolidating two compression manufacturing facilities in that metropolis by Dec. 31.
Way said prospects are bright for Exterran’s global water solutions enterprise. “This is a business where we can grow significantly without a market backdrop of investment and where our technology can solve customer issues, whether in a new or an existing application with a lower-cost and improved environmental impact, as compared to most other options.”
Exterran reported a third quarter net loss of US$9.8 million compared to a loss of US$7.3 million for the second quarter and net income of US$5.4 million for the third quarter of 2018.