Energy Services of America, a Huntington-based company that provides construction services for the natural gas, oil, chemical and electrical industries, recorded a loss of about $3.9 million in the first quarter of 2012.
The companies subsidiaries include C.J. Hughes Construction Co., Inc., S.T. Pipeline, C.J. Hughes Pipeline and Nitro Electric Co.
For the quarter ending March 31, ESA experienced a loss of $3.9 million compared to a loss of $3.4 million for the three months ended March 31, 2011. Year-to-date loss, however totaled just $2.7 million compared to a $3.4 million loss for the six months ending March 31, 2011.
Marshall T. Reynolds, chairman of ESA, said he believes the loss was largely attributable to one job and is "isolated and do not reflect a trend."
"Due to the seasonal nature of our business and the difficulties of winter weather, the first two quarters of our fiscal year are normally challenging," Reynolds said. "The current quarter's results were adversely effected by one job for one of the subsidiary companies which showed a loss of $4.7 million for the quarter. Excluding this one loss, the company would have shown a much better performance for the quarter and year to date."
Edsel R. Burns, president of ESA, also believes that one, unmentioned job was most detrimental to the company's finances.
"Demand for our services continues to be strong as evidenced by our backlog and projects coming up for bid. However, as noted by Mr. Reynolds, the one job that experienced a significant loss, severely hurt our quarter and six months performance," Burns said. "Now that we have recognized what we believe to be the total losses relating to that particular job, we are continuing to focus on our job performance and ongoing projects."
Reynolds said he is looking forward to future results from the company.
"Our backlog at March 31, 2012 was $114.1 million," Reynolds said. "Also, the volumes of projects coming up for bid, that we are aware of, continue to be strong. While our success at winning contracts always determines the revenue we ultimately will generate, with the increased volume of work available, we are very excited about our long term prospects."
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