- DIVERGENT Energy Services (DVG) calls the 2020 fiscal year “one of the most challenging years in its history”
- The company released the results of its 2020 financial year ending December 31, 2020
- DIVERGENT was forced to restructure financial obligations and improve key operational aspects of the business in 2020
- That restructuring is now complete
- DIVERGENT Energy is down 5.26 per cent on the day, with shares of the company trading at C$0.09 at 9:30 am ET
DIVERGENT Energy Services (DVG) calls the 2020 fiscal year “one of the most challenging years in its history.”
The company released the results of its 2020 financial year ending December 31, 2020.
DIVERGENT was forced to restructure its financial obligations and improve key operational aspects of the business in 2020.
The company believes this will position it for growth in 2021.
That restructuring is now complete.
A total of C$3.1 million of unsecured current obligations with suppliers was restructured into long-term obligations in 2020. In addition, $3.4 million of the secured debentures were converted to equity of the company with the remaining $1.2 million being extended to 2025. Both of these moves were finalized in January 2021.
DIVERGENT also accessed $400-thousand of government emergency loans made available to companies negatively impacted by the COVID-19 pandemic.
The company’s revenues decreased 47 per cent from 2019, however it was able to maintain gross margins of 25 per cent in 2020 versus 23 per cent in 2019. It did so by implementing cost control and cost reduction measures to adjust to the lower levels of activity.
DIVERGENT ended 2020 with a significantly improved financial position and an organization positioned to grow when the underlying market conditions improve.
DIVERGENT is headquartered in Calgary, Alberta and provides artificial lift products and services that are used in the oil and gas industry.
DIVERGENT Energy is down 5.26 per cent on the day, with shares of the company trading at C$0.09 at 9:30 am ET.
