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Koil Energy Solutions (KLNG)
OTHER OTC:KLNG
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Koil Energy Solutions
(OTC:KLNG)
73Outperform
Koil Energy Solutions (KLNG) vs. S&P 500 (SPY)
Market Cap
$23.54M
Dividend YieldN/A
Average Volume (3M)22.15K
Price to Earnings (P/E)8.9
Beta (1Y)0.91
Revenue Growth48.16%
EPS GrowthN/A
CountryUS
Employees63
SectorEnergy
Sector Strength50
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.21
Shares Outstanding12,388,202
10 Day Avg. Volume14,371
30 Day Avg. Volume22,154
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.20
Price to Cash Flow (P/CF)3.30
P/FCF Ratio3.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Koil Energy Solutions Business Overview & Revenue Model
Company DescriptionKoil Energy Solutions, Inc., an energy services company, provides equipment and support services to the energy and offshore industries. It offers engineering and project management services, including the design, installation, and retrieval of subsea equipment and systems; connection and termination operations services; well-commissioning services; and construction support services. The company also provides project management and engineering; spooling; testing and commissioning; storage management; and refurbishment and repurposing of recovered subsea equipment, as well as support services for offshore interventions. In addition, it offers loose steel tube flying lead and umbilical hardware products, as well as riser isolation valves and subsea isolation valve services. Further, the company provides installation aids, including flying lead installation systems, tensioners, lay chutes, buoyancy modules, clump weights, mud mats, pumping and testing skids, control booths, fluid drum carriers, under-rollers, carousels, running and parking deployment frames, termination shelters, pipe straighteners, subsea deployment basket system, horizontal drive units, and rapid deployment cartridges. It serves energy companies, subsea equipment manufacturers, subsea equipment installation contractors, offshore drilling contractors, engineering and construction companies, and other companies involved in maritime operations. The company was formerly known as Deep Down, Inc. and changed its name to Koil Energy Solutions Inc. in April 2022. Koil Energy Solutions Inc. was founded in 1997 and is headquartered in Houston, Texas.
How the Company Makes MoneyKoil Energy Solutions generates revenue through a diversified business model centered on providing engineering services, project management, and manufacturing solutions for the offshore oil and gas industry. Key revenue streams include contracting and consultancy fees for engineering projects, sales of proprietary technology and equipment, and long-term service agreements for maintenance and support. The company may also form strategic partnerships with other industry players to expand its service offerings and enter new markets, thereby increasing its revenue potential.
Koil Energy Solutions Financial Statement Overview
Summary
Koil Energy Solutions has shown a significant improvement in its financial performance, marked by enhanced profitability and cash flow generation. The income statement exhibits healthy gross and net profit margins, with substantial revenue growth. The balance sheet, however, reveals moderate leverage and a high reliance on liabilities. The cash flow statement indicates robust free cash flow growth, reflecting efficient operations and financial flexibility. Overall, the company has demonstrated notable recovery and growth, but maintaining profitability and managing leverage remain crucial.Income Statement
Koil Energy Solutions showed a significant improvement in its income statement for the TTM period. The gross profit margin is healthy at approximately 31.52%, and the net profit margin has turned positive to about 5.78%, indicating improved profitability. Revenue growth from the previous year is impressive, with an increase of 35.54%. The EBIT and EBITDA margins have also turned positive, reflecting better operational efficiency. However, historical volatility in net income remains a concern.65
Positive
Balance Sheet
The balance sheet presents a mixed picture. The debt-to-equity ratio is moderate at 0.80, indicating a balanced approach to leverage. The return on equity is approximately 15.24%, showing good use of equity capital. However, the equity ratio is under 42.45%, suggesting a relatively high reliance on liabilities to finance assets. The improvement in equity over the year is a positive sign, but past fluctuations pose risks.55
Neutral
Cash Flow
The cash flow statement shows robust free cash flow growth and a strong operating cash flow to net income ratio, indicating efficient cash generation relative to profit. Free cash flow improved significantly, bolstering financial flexibility. However, the company needs to maintain consistent cash flow performance to mitigate potential risks from past negative cash flows.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 20.80M | 15.34M | 12.98M | 17.23M | 12.98M | 18.91M | Gross Profit |
| 6.56M | 4.85M | 4.68M | 5.84M | 4.92M | 6.80M | EBIT |
| 1.14M | -1.61M | -3.01M | -343.00K | -6.04M | -2.80M | EBITDA |
| 2.11M | -996.00K | -1.00M | 3.40M | -4.95M | -1.02M | Net Income Common Stockholders |
| 1.20M | -1.55M | -2.93M | 2.33M | -6.06M | -2.77M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.05M | 2.03M | 2.35M | 3.68M | 3.75M | 3.52M | Total Assets |
| 20.12M | 17.06M | 16.61M | 14.73M | 14.94M | 21.55M | Total Debt |
| 56.00K | 6.71M | 7.66M | 1.89M | 248.00K | 4.36M | Net Debt |
| -1.96M | 4.68M | 5.30M | -1.78M | -3.50M | 838.00K | Total Liabilities |
| 3.01M | 11.44M | 9.51M | 4.45M | 7.04M | 7.19M | Stockholders Equity |
| 17.11M | 5.62M | 7.11M | 10.27M | 7.90M | 14.36M |
| Cash Flow | Free Cash Flow | ||||
| 1.98M | -27.00K | -1.29M | -1.42M | -377.00K | 146.00K | Operating Cash Flow |
| 2.11M | 203.00K | 1.24M | -1.07M | -206.00K | 237.00K | Investing Cash Flow |
| -125.00K | -226.00K | -2.26M | -113.00K | -158.00K | 1.55M | Financing Cash Flow |
| 6.00K | -300.00K | -303.00K | 1.11M | 586.00K | -278.00K |
Koil Energy Solutions Technical Analysis
Neutral
1.90
Price Trends
2.03
Negative
2.09
Negative
1.76
Positive
Market Momentum
-0.05
Negative
49.66
Neutral
89.13
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KLNG, the sentiment is Neutral. The current price of 1.9 is above the 20-day moving average (MA) of 1.86, below the 50-day MA of 2.03, and above the 200-day MA of 1.76, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 49.66 is Neutral, neither overbought nor oversold. The STOCH value of 89.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KLNG.
Koil Energy Solutions Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $76.94M | 12.00 | 6.92% | ― | 14.47% | ― | |
73 Outperform | $23.54M | 8.90 | 36.84% | ― | 48.16% | ― | |
55 Neutral | $7.11B | 3.51 | -6.23% | 6.00% | >-0.01% | -51.70% | |
48 Neutral | $36.02M | ― | -375.26% | ― | -20.16% | -357.41% | |
45 Neutral | $45.62M | ― | -10.48% | ― | -2.48% | 83.11% | |
42 Neutral | $34.73M | ― | 73.91% | ― | -9.09% | -15.47% | |
35 Underperform | $38.73M | ― | -16.91% | ― | -23.43% | 71.14% |
* Energy Sector Average
Performance Comparison
KLNG
Koil Energy Solutions
1.90
1.43
304.26%
DWSN
Dawson Geophysical Company
1.25
-0.38
-23.31%
RCON
Recon Technology
1.63
-0.12
-6.86%
NCSM
Ncs Multistage Holdings
30.28
13.88
84.63%
NINE
Nine Energy Service
0.82
-1.47
-64.19%
KLXE
KLX Energy Services Holdings
2.07
-5.02
-70.80%
Koil Energy Solutions Earnings Call Summary
Earnings Call Date: Apr 15, 2025 | % Change Since: 11.76% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
Koil Energy reported a strong year with record-breaking revenue and EBITDA growth, significant contract wins, and a solid cash position. However, challenges in internal controls, potential supply chain risks, and limited order book visibility were noted. The overall sentiment is positive due to the outweighing highlights.Highlights
Record Revenue and EBITDA Growth
Koil Energy achieved a 48% increase in revenue year-over-year, reaching $23 million for the full year 2024. EBITDA improved from a loss in 2023 to $3.5 million, marking a historic profitability record for the company.
Significant Contract Wins
During the fourth quarter, Koil Energy secured a significant contract to deliver subsea distribution equipment for a project in West Africa and a major contract for advanced maintenance services.
Strong Cash Position and Working Capital
At year-end, Koil Energy reported a cash balance of $3.4 million and working capital of $5.7 million, up from $2.6 million the previous year.
Geographic Expansion and Strategic Alliances
Koil Energy expanded into Brazil with a new facility and formed a strategic alliance with SubseaDesign AS to advance subsea technology.
Lowlights
Material Weakness in Internal Controls
A mistake was identified in equity accounting, leading to a delay in the earnings report. Although it did not have a material adverse impact, it highlighted weaknesses in internal controls.
Impact of Tariffs and Supply Chain Risks
Potential risks from tariffs on raw materials like super duplex steel could affect supply chain stability and cost structures, though mitigated by contract clauses.
Limited Visibility on Order Book
The company reported limited visibility on its order book beyond a couple of quarters, making it difficult to forecast long-term revenue accurately.
Company Guidance
During Koil Energy's fourth quarter and full-year 2024 earnings call, CEO Erik Wiik highlighted the company's impressive financial performance, with a notable 48% year-over-year increase in revenue, reaching $23 million for the full year. The fourth quarter alone saw revenue of $6 million, a 14% sequential increase, and EBITDA of $1 million, translating to a 16% margin. The gross margin remained stable at 40%, while selling, general, and administrative expenses slightly rose to $1.7 million due to increased staffing. Koil Energy reported a net income of $537,000 for Q4, a significant turnaround from a net loss of $890,000 the previous year. The company also generated $1.4 million in free cash flow, bolstering its cash position to $3.4 million by year-end. With $5.7 million in working capital, Koil Energy is positioned for further growth, driven by its strategic roadmap and increased market demand in key subsea basins like the Gulf of America and the North Sea. Despite challenges related to supplier delays, the company remains optimistic about its future, supported by expanding service offerings and a strong presence in international markets, including a new facility in Brazil.Koil Energy Solutions Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Koil Energy Solutions Announces Leadership Changes
Neutral
Jan 15, 2025
On January 10, 2025, Trevor Ashurst resigned from his role as Vice President of Finance and Administration at KOIL Energy Solutions, effective February 1, 2025. His departure was amicable, and he was acknowledged for his contributions during a transformative period for the company, including rebranding efforts and profitability enhancements. To support its growth, KOIL is working with SNRG Corporation to hire a new Chief Financial Officer and Human Resources Manager.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.