RPC Q1 Revenues Rise 7% to $454.8M, Net Income Turns Positive
RPC's Q1 revenues increased 7% to $454.8 million, producing a $0.9 million net profit versus a $3.1 million Q4 loss and a 0.2% net margin. Adjusted EBITDA totaled $53.5 million with an 11.8% margin, Technical Services revenue rose 7% on 20% pumping and 13% nitrogen growth, while Support Services held flat despite winter weather.
1. First Quarter Financial Highlights
RPC reported Q1 revenues of $454.8 million, up 7% sequentially, with net income of $0.9 million compared to a $3.1 million loss in Q4. Earnings per share was $0.00, and net income margin improved by 90 basis points to 0.2%. Sequential comparisons indicate modest profit recovery despite industry headwinds.
2. Segment Performance
The Technical Services segment drove growth with a 7% revenue increase, led by 20% growth in pressure pumping and 13% gains in nitrogen services. Downhole tools through Thru Tubing Solutions rose 11% on higher activity and new technology adoption. The Support Services segment saw flat revenue as winter weather impacted operations across multiple basins.
3. Adjusted Metrics and Margins
Adjusted net income totaled $7.6 million with adjusted EPS of $0.03, down from $9.4 million and $0.04 respectively in Q4. Adjusted EBITDA was $53.5 million, slipping from $55.1 million, and the adjusted EBITDA margin contracted by 110 basis points to 11.8%. Cost of revenues increased due to activity-based expenses and materials mix changes.
4. Management Commentary and Outlook
Management noted this quarter’s performance was tempered by winter storms but supported by higher oil prices and increased bidding activity. Executives highlighted operator willingness to maintain spending levels despite prior reduction plans, while cautioning on commodity price volatility. RPC intends to focus on capital returns and disciplined investments going forward.