ESP Resources Establishes Transfac Facility
ESP Resources, an oil and gas services company, announced its wholly-owned subsidiary, ESP Petrochemicals, entered into a factoring agreement up to $4 million with Transfac Capital. The agreement replaces the company’s previous factoring facility that carried a higher interest rate.
President & CEO David Dugas stated, “When we decided in early 2013 to discontinue certain non-core divisions and focus on our core production petrochemical business, our expectation was that we would gain new customers. We are pleased to announce that we have been successful in those efforts with the acquisition of 11 new customers in the regions of South Louisiana, North and South Texas and Southern Oklahoma. With the acquisition of these new customers, our revenue has increased substantially in this third quarter of 2014 compared to the third quarter last year. We anticipate the same positive trends in the coming quarters and the continued improvement of our cash flows and gross margins.”
Dugas continued, “This new credit line with Transfac bolsters our working capital needs so that we can support our supply chain and service our pipeline of business with new and existing customers.”