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UPDATE 1-U.S. Silica 4th-qtr profit rises on oil and gas demand
March 20, 2012 / 1:22 PM / 6 years ago

UPDATE 1-U.S. Silica 4th-qtr profit rises on oil and gas demand

* Q4 rev rises 41 pct to $83.6 mln

* Q4 EPS $0.19 vs $0.07 a year ago

* Sees Q1 rev at $92-$97 mln

March 20 (Reuters) - U.S. Silica Holdings Inc, which went public last month, posted a higher fourth-quarter profit boosted by increased demand from the oil and gas industry and forecast sequentially higher revenue for the current quarter.

The No. 2 U.S. commercial silica maker’s largest end market is for proppants used by the oil and gas industry in an exploration method called hydraulic fracturing.

A boom in oil and gas drilling has led to shortages in fracking materials such as proppants, driving up demand for the material. The shortages were felt in the Rockies, Bakken, South Texas and Permian regions in the fourth quarter.

Fourth-quarter net income rose to $10.0 million, or 19 cents per share, compared with $3.8 million, or 7 per cents share, a year ago.

Revenue rose 41 percent to $83.6 million.

The company expects first-quarter revenue to come in between $92 million to $97 million.

U.S. Silica said it sees full-year revenue at $395 million to $420 million, higher than its 2011 revenue of $295.6 million.

The company’s shares, which have risen about 24 percent since its market debut on Feb. 1, closed at $19.81 on Monday on the New York Stock Exchange.

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