Vivakor Inc (NASDAQ:VIVK) reported a big increase in revenue during the third quarter thanks to strong oil and natural gas liquid sales from its Louisiana assets.
Total revenue for the quarter increased by 39% year-over-year to $16.3 million, while gross profit increased by 28%, totaling $1.5 million, resulting in a gross margin of 9.5%.
The company posted adjusted EBITDA of $1.6 million, up 1,065% compared to the same year-ago quarter.
CEO James Ballengee told investors that its operating assets in Colorado City, Texas, and Delhi, Louisiana have exceeded its expectations.
“Demand and opportunities remain strong and are reflected in our third quarter and year-to-date operating and financial results, which show solid growth and margins. In addition, we are excited about our RPC Houston project,” Ballengee said in a statement.
Construction on the RPC Houston project is almost finished, and the company is awaiting permits for facility operation, Ballengee said. Anticipating approval shortly, Vivakor plans to commence sample processing shortly after receiving the required permits.
“We believe the Houston site provides a tremendous opportunity to be able to recover and reuse approximately 1.3 barrels of oil per ton of waste,” the CEO added.
For the nine months ending September 30, 2023, Vivakor has seen a 286% surge in revenue to $45.4 million.
Based in Dallas, Vivakor is a clean energy technology company specializing in oil remediation and natural resources. Its subsidiaries Silver Fuels Delhi, LLC, and White Claw Colorado City, LLC, manage crude oil facilities with long-term contracts.
Vivakor's patented Remediation Processing Centers facilitate environmentally-friendly recovery of bitumen and hydrocarbons from contaminated soils, uniquely able to clean soils with over 5% oil contamination, making them suitable for reuse. Current projects include extraction from oil-laden sands and petroleum-based remediation initiatives in Kuwait and Houston, Texas.