Emerge Energy Services LP (EMES) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $5.12 million, or $ 0.21 a share in the quarter, against a net loss of $11.90 million, or $0.49 a share in the last year period.

Revenue during the quarter plunged 48.42 percent to $31.28 million from $60.65 million in the previous year period. Gross margin for the quarter stood at negative 29.46 percent as compared to a positive 12.32 percent for the previous year period. Operating margin for the quarter stood at negative 59.37 percent as compared to a negative 6.44 percent for the previous year period.

Operating loss for the quarter was $18.57 million, compared with an operating loss of $3.91 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $8.11 million compared with $0.26 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 25.93 percent for the quarter compared to 0.44 percent in the last year period.

"We believe that we are in the early stages of a recovery for the oil and gas markets," said Ted W. Beneski, chairman of the board of directors of the general partner of Emerge Energy. "We are proud of the progress we have made on our strategic plan laid out at the onset of this downturn. During the third quarter, we closed the sale of the Fuel business to Sunoco, raised $20 million of equity, and paid down our bank loan to approximately $153 million at quarter end. We also completed an important amendment with our lenders that resets our covenant package. As the final step to strengthening our balance sheet, we are actively working on a public unit offering and expect to compete the capital raise soon."