HOUSTON - Adams Resources & Energy, Inc. (NYSE AMERICAN: AE) has reported a revenue beat in its fourth quarter financial results, with total revenue reaching $709.8 million, surpassing the analyst consensus estimate of $662.9 million. The company's adjusted earnings per share (EPS) for the quarter was $0.03, which fell short of the analyst estimate of $0.05. Despite the EPS miss, the company's stock price responded positively, rising 2.04% on the news of the revenue outperformance.
Adams Resources' revenue for the fourth quarter marked a decrease from the $747.7 million reported in the same quarter last year. The company's net loss for the quarter improved to -$0.9 million, or -$0.34 per common share, from a net loss of $7.3 million, or -$2.34 per common share, in the fourth quarter of 2022. The company also highlighted a year-over-year increase in cash flow from operations and total liquidity, with cash and cash equivalents standing at $33.3 million at the end of 2023, up from $20.5 million the previous year.
Kevin J. Roycraft, Chief Executive Officer of Adams, commented on the company's performance amidst a challenging environment. He noted that the crude oil marketing segment saw a sequential increase in operating income and that the company nearly tripled its net income on a sequential basis. Roycraft also acknowledged the challenges facing the GulfMark and Service Transport segments but expressed optimism for a gradual recovery starting in the second half of 2024.
The company's crude oil marketing subsidiary, GulfMark, experienced a decrease in marketed barrels per day, primarily due to the closure of its Red River operations. Service Transport Company, Adams' subsidiary for transportation of liquid chemicals and other materials, reported a slight increase in miles traveled compared to the fourth quarter of 2022.
Looking ahead, Roycraft emphasized Adams Resources' strong financial position to navigate ongoing macroeconomic challenges and the company's commitment to delivering shareholder value through dividends. The company's Board of Directors declared a quarterly cash dividend for the fourth quarter of 2023 of $0.24 per common share, payable on March 22, 2024.
Adams Resources' financial results reflect the company's resilience in a difficult market, with a revenue beat driving a positive investor response despite a shortfall in EPS. The company's strategic exits and operational adjustments, along with its focus on financial stability, position it to capitalize on market improvements in the future.
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