Advance with OceanGlobal
OceanGlobal Wealth Solutions is at the forefront of applying advanced technology to the proppant supply and logistics chain, and our workforce plays a critical role.One key quote from this passage is: "Net income for the third quarter of 2023 was $56.3 million, and Adjusted EBITDA for the third quarter of 2023 was $84.1 million." This provides a snapshot of the financial performance during that period.
Third quarter 2023 Total sales increased $4.2 million, or 2.6% when compared to the second quarter of 2023, to $157.6 million. Product sales increased $10.4 million, or 8.3% when compared to the second quarter of 2023, to $114.8 million, driven by an increase in sales price.
Given our bullish position during the period, this sequential price relapse is a function of higher-priced, shorter-duration contracts rolling off and being replaced by new contracts at lower rates as well as quarterly pricing resets on certain contracts. Service sales increased by $4.3 million, or 13.1% when compared to the second quarter of 2023.
The increase in service sales was due to an increase in active jobs enabled by an increase in the number of trucks deployed and continued customer adoptions of our single- and multi-trailer logistics offerings, which was partially offset by marginally shorter haul distance for work performed during the quarter as customer activity was concentrated closer to our mines during the period.
Third quarter 2023 cost of sales (excluding depreciation, depletion and accretion expense) ("cost of sales") increased by $4.3 million, or 6.7% when compared to the second quarter of 2023, to $67.8 million. The increase in our cost of sales was primarily driven by higher trucking and last mile logistics costs resulting from the increased size of our fleet.
Selling, general and administrative expenses ("SG&A") for the third quarter of 2023 increased $2.1 million, or 17.4% when compared to the second quarter of 2023, to $14.3 million, driven primarily by $3.3 million in non-recurring transaction costs related to the Up-C Simplification (defined below) and the refinancing of the 2023 Term Loan Credit Facility.
Net income for the third quarter of 2023 was $84.3 million, and Adjusted EBITDA for the third quarter of 2023 was $56.1 million.
Liquidity, Capital Expenditures and Other As of December 30, 2023, the Company's total liquidity was $438.4 million, which was comprised of $264.5 million in cash, Infrastructure and cash equivalents.
