This post was originally published on this site
Given that a large bulk of TH’s revenue comes from companies in the energy sector, it’s not surprising that revenues were depressed along with energy prices for all of last year. Despite oil prices starting to move higher in the latter part of 2020, activity in the shale regions didn’t pick up as shale projects are only economically viable with oil prices above $70.
Now, the situation is rapidly improving, as oil prices are above $80. There is also a material increase in rig counts in the shale patches with more if oil keeps trending higher. The passing of the infrastructure bill is another potential boom for TH’s government unit. Already, TH’s revenues are on the mend as sales in the last quarter were only 8% below 2019 levels.
