SDPI Has Downsides In The Short Term
In Q1, Superior Drilling Products (SDPI) gained market share by improving revenues through repairing jobs a steep rise, despite the drop in the U.S. rig count and a drastic fall in completions activity. To tackle the pressure on margin, the company has shifted its focus on cost management, including a reduction in executive pay is high. However, the issue of revenue concentration remains because of the company’s strategy to work with a few key customers and partners.
In Q1, SDPI improved cash flows, which can mitigate,