Orbital Energy Group, Inc. (OEG) stock plunged 2.62% in the premarket trading session at the price of $2.60 despite no fundamental updates. Orbital Energy Group, Inc. is developing a diversified energy services forum through the development and acquisition of innovative enterprises.
Acquisition of Front Line Power Construction
On 17th November 2021, OEG announced a 100% acquisition of Front Line Power Construction LLC. FLP is an electrical infrastructure service firm. The company offers maintenance, construction, and emergency response services to clients. This transaction will be directly accretive to cash flow and add a substantial scale to Orbital Energy. The company expects the combined revenue for 2022 to surpass $300.0 million.
Chief Executive Officer and Vice-Chairman of OEG, Jim O’Neil, remarked that FLP is the ideal acquisition to aid their electric power infrastructure business. It will help them build revenues both organically and through synergistic acquisitions. Further, it improves their transformation into a full-service energy infrastructure services forum. FLP’s incredible growth confirms its capacity to offer comprehensive solutions to customers. The company has substantial momentum driven by aging infrastructure, an evolution to renewable generation.
OEG Third Quarter 2021 Financial Results
On 15th November 2021, OEG reported its financial results for the three and nine months ended on 30th September 2021.
OEG Financial Summary
OEG calculated revenues of $30.9 million for the Q3 of 2021. For the third quarter of 2020, revenue was $13.6 million. The gross profit was $3.8 million for the third quarter of 2021. For the Q3 of 2020, gross profit totaled $2.4 million. Operating loss was $11.7 million for the third quarter of 2021. Operating expenses totaled $15.5 million for the third quarter of 2021. For the third quarter of 2020, the company has operating expenses of $8.7 million.
Jim O’Neil commented that their third-quarter earnings reflect the advancement of their plan to build a full-service infrastructure service platform. Higher revenues growth resulted from organic growth in Orbital Power Systems, the contribution from Gibson Technical Services, and the tuck-in acquisition of IMMCO. They anticipate improved efficiencies and higher margins in the Q4 of 2021, he added.