Vivakor Inc (NASDAQ:VIVK) posted third-quarter results that saw its revenue jump 1,118% year-over-year driven by a significant increase in oil and natural gas liquid sales from its recent acquisition of Silver Fuels Delhi LLC, which operates in Louisiana.
For the period ending September 30, 2022, the Irvine, California-based clean energy technology company focused on the oil remediation and natural resources sectors, reported revenue of $11.8 million, compared to $1 million in the third quarter of 2021.
The company chalked up the rise to oil and natural gas liquid sales from the recent acquisitions of Silver Fuels Delhi LLC and White Claw Colorado City LLC.
READ: Vivakor hires oil industry expert James Ballengee as new CEO
The company’s gross profit for the quarter increased to $1.2 million. The resulting gross margin for the quarter was 10.3%, compared to 2.9% for the comparable period a year earlier.
Vivakor sharply narrowed its net loss for the quarter by $1.3 million or 46% to $1.6 million, compared to $2.9 million for the same quarter a year earlier. The net loss per share for the quarter was $0.09, compared to a net loss per share of $0.24 for 3Q 2021.
The company had cash and equivalents of $4.4 million as of September 30, 2022, an increase of $3.1 million compared to $1.3 million on December 31, 2021.
Reaping synergistic benefits
In a statement accompanying the numbers, Vivakor Chairman and CEO James Ballengee said: "We are very pleased with our quarterly results, our first quarter including our newly acquired assets in the oil and natural gas segment. Our team has already identified many areas that make our recent business combination complementary and synergistic. We expect to realize these benefits throughout 2023."
Ballengee added: "The combination of this vision and the acquisition of the midstream oil and gas assets of Silver Fuels Delhi and White Claw Colorado City, along with our Remediation Processing Centers, presents a unique opportunity to bring ESG technology to the existing traditional midstream industry."
The Pro-forma unaudited revenue stood at $47.7 million for the nine months that ended September 30, 2022. It represents the combined results of the operations of Vivakor, Silver Fuels Delhi, and White Claw Colorado City for the nine months of the year, as though the companies had been combined as of January 1, 2021, said Vivakor.
Vivakor's mission is to create, acquire and accumulate distinct assets, intellectual properties, and exceptional technologies. The firm’s Silver Fuels Delhi LLC and White Claw Colorado City LLC subsidiaries include crude oil gathering, storage, and transportation facilities, which feature long-term 10-year take or pay contracts.
The company's patented Remediation Processing Centers allow for the environmentally friendly recovery of bitumen (heavy crude) and other hydrocarbons from the remediation of contaminated soils.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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