RPC Q3 sales miss on lower wireline revenues
RES•RPC's third-quarter revenue rose 1% to $467.74 million, slightly below the $471.40 million estimate, while adjusted net income of $22.80 million missed the $23.15 million estimate. The quarter included $74.5 million in impairment charges tied to weakness in its Pintail wireline business.
1. Revenue and earnings
RPC reported third-quarter revenue of $467.74 million, up 1% but slightly below analysts' $471.40 million estimate. Adjusted net income was $22.80 million, below the $23.15 million estimate, and the company posted a net loss of $41.93 million. The quarter included $74.5 million in impairment charges tied to weakness in its Pintail wireline business.
2. Service line results
Higher activity in Coiled Tubing, Nitrogen and Snubbing drove growth in the Technical Services segment, while lower Wireline revenue offset those gains. Support Services revenue rose 3% sequentially, led by increased Rental Tools activity.
3. Operating outlook
RPC said current oil prices support a more favorable operating environment and that drilling and completion activity has improved, resulting in higher customer activity levels. It expects continued cost pressures, particularly in labor, trucking and fuel.
