If you would like to receive our news via email, Click Here to sign up.
RPC, Inc. Reports 2002 First Quarter Results |
ATLANTA, Apr 19, 2002 /PRNewswire-FirstCall via COMTEX/ -- RPC Incorporated (NYSE: RES) announced its unaudited results for the quarter ended March 31, 2002. For the quarter ended March 31, 2002, revenues decreased 25.5 percent to $46,728,000 compared to $62,733,000 last year. Net loss from continuing operations was $1,167,000, or $0.04 diluted loss per share, compared to net income from continuing operations of $8,356,000 or $0.25 diluted earnings per share last year. Gross profit for the first quarter was $16,820,000, a 41.3 percent decrease from the same period in 2001. The operating loss for the first quarter was $1,866,000, compared to an operating profit of $10,887,000 in the first quarter of last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations were $5,882,000 or $0.20 per diluted share for the quarter, compared to $16,465,000 or $0.58 per diluted share in the prior year.
"RPC's First Quarter results reflect the impact of a steep decline in the domestic oil and gas rig count," stated Richard A. Hubbell, RPC's President and Chief Operating Officer. "The average quarterly rig count of 814 was 29 percent lower than 2001, ending the quarter at 761. As a result, the difficult environment for the oil and gas services industry that started in 2001 continued throughout the first quarter of this year. This reduced customer activity, impacted pricing and equipment utilization, and is reflected in our reduced gross profit."
Hubbell continued, "Despite the cyclical nature of the industry, RPC has continued to generate healthy cash flows and to maintain low levels of debt. We continue to be vigilant with our cost-cutting programs and the monitoring of our capital expenditures. We are also assessing all of our current operations in order to enhance our performance when the industry recovers from this downturn. Accordingly, after ten years of operations, we shut down our Venezuelan operations during the first quarter of 2002. The shut down was completed with minimal impact on our financial results -- an action that we believe was justified given Venezuela's civil unrest during the past two weeks. We are redeploying these assets into other operating regions where we believe sufficient demand exists to utilize them profitably.
"Historically, rising oil and natural gas prices are good indicators of recovery in the oil and gas services industry. At the end of the first quarter, the prices of natural gas and oil started to trend higher, as the price of gas rose above the $3 level for the first time since early in the fourth quarter and oil rose above $25 for the first time since the third quarter. At the same time, towards the end of the quarter, our asset utilization improved slightly, so we are cautiously optimistic for the rest of the year."
Summary of Segment Operating Performance
Technical Services includes RPC's oilfield service lines that utilize people and equipment to perform value-added completion, production and maintenance services directly to a customer's well. These services are generally directed towards improving the flow of oil and natural gas from producing formations or to address well control issues. The Technical Services include snubbing, coiled tubing, pressure pumping, nitrogen, well control, downhole tools, wire line, fluid pumping, hot tapping, gate valve drilling and casing installation services.
Both Technical Services and Support Services were impacted by weaker customer demand. Revenues overall were down, but slightly offset in Technical Services by the pressure pumping acquisitions made during the second and third quarters last year. Technical Services revenues fell 19 percent compared to the 29 percent decline in the rig count. This demonstrates that our acquisitions are positively impacting our financial results, helping to support our revenues during a time of falling rig counts. We will continue to make acquisitions that will help us to grow our business and be more resistant to downturns in this historically cyclical industry.
Support Services includes RPC's oilfield service lines that provide equipment for customer use or services to assist customer operations. The equipment and services offered include drill pipe and related tools, pipe handling, inspection and storage services, work platform vessels, and oilfield training services.
Our Support Services tend to be impacted more by dramatic changes in rig counts, as indicated by the 48 percent decline in revenues for the quarter, compared to the prior year. These service lines perform quite well when industry conditions are more favorable.
** See attachment for entire release and tables **
|
|
|
|
|
|
|