The evolution of Mammoth: Company grows energy services segmentsPublished: Wednesday, August 8, 2018 By: Sarah Terry-Cobo Source: The Journal Record
Mammoth Chief Financial Officer Mark Layton said the bad debt expense was related to tax provisions and was specific to the power restoration contracts. The grid reconstruction contracts don’t have provisions like that. Straehla said that, in general, investor-owned utilities pay their bills quickly.
Fleming said it’s important that Mammoth executives clarified the bad debt expense for analysts.
“They just signed a $900 million contract, so it is very important to the future earnings of the company,” she said.
MacDonald said it’s one thing for a company to enter into contracts with a shaky business. But since Puerto Rico Electric Power Authority was already in bankruptcy when it signed a contract with Cobra, then the bankruptcy judge must have approved those agreements.
“They won’t let an electric company go under,” he said. “So that is not necessarily a crazy business decision.”
Even Cobra’s executives face genuine risk in working with PREPA, but it’s overall a good bet, because the government wants to see the utility survive so the grid can be rebuilt.
Mammoth’s stock price rose during Tuesday’s trading, closing at $37.87, up $1.03 or 2.8 percent higher than Monday’s close.