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Superior Energy Services Announces First Quarter 2016 Results

HOUSTON, April 28, 2016 /PRNewswire/ -- Superior Energy Services, Inc. (the "Company") today announced an adjusted net loss from continuing operations for the first quarter of 2016 of $74.4 million, or $0.49 per share, excluding a pre-tax charge of $15.3 million for restructuring costs, on revenue of $413.1 million. This compares to an adjusted net loss from continuing operations of $61.3 million, or $0.41 per share, excluding special items, for the fourth quarter of 2015, on revenue of $545.2 million, and a net loss from continuing operations of $1.5 million, or $0.01 per share, for the first quarter of 2015, on revenue of $917.2 million. The reported loss from continuing operations for the first quarter of 2016 was $84.5 million, or $0.56 per share.

David Dunlap, President and CEO, commented, "As expected, oil and gas operating activity continued to weaken during the first quarter, particularly in U.S. land markets. Pricing and utilization continued to decline across many of our product lines as our customers adjusted their spending levels in response to very low crude oil prices experienced during January and February.

"During the quarter, we continued to work on our cost structure and to position the Company for maximum responsiveness when a recovery occurs. Until that recovery arrives, our focus is to maintain our financial and operational flexibility, preserve our current liquidity and improve our long-term competitive position."

First Quarter 2016 Geographic Breakdown

U.S. land revenue was $190.1 million in the first quarter of 2016, a 22% decrease as compared with revenue of $243.5 million in the fourth quarter of 2015 and a 67% decrease compared to revenue of $576.3 million in the first quarter of 2015. Gulf of Mexico revenue was $113.4 million, a sequential decrease of 33% from fourth quarter 2015 revenue of $169.7 million, which included a contract termination fee of $22.9 million, and a 38% decrease from revenue of $184.1 million in the first quarter of 2015. International revenue decreased 17% to $109.6 million as compared with $132.0 million in the fourth quarter of 2015 and decreased 30% as compared to revenue of $156.8 million in the first quarter of 2015.

Drilling Products and Services Segment

The Drilling Products and Services segment revenue in the first quarter of 2016 was $96.6 million, a 14% decrease from fourth quarter 2015 revenue of $111.7 million and a 51% decrease from first quarter 2015 revenue of $196.6 million.

U.S. land revenue decreased 31% sequentially to $19.9 million, Gulf of Mexico revenue decreased 9% sequentially to $45.6 million and international revenue decreased 5% sequentially to $31.1 million. Lower revenues were driven by pricing pressure and lower utilization in the accommodations, bottom hole assemblies and premium drill pipe businesses.

Onshore Completion and Workover Services Segment

The Onshore Completion and Workover Services segment revenue in the first quarter of 2016 was $132.5 million, a 14% decrease from fourth quarter 2015 revenue of $153.8 million and a 62% decrease from first quarter 2015 revenue of $351.1 million. The most impactful activity declines in this segment were experienced in well servicing, fluid management and horizontal well fracturing.

Production Services Segment

The Production Services segment revenue in the first quarter of 2016 was $96.7 million, a 29% decrease from fourth quarter 2015 revenue of $135.6 million and a 62% decrease from first quarter 2015 revenue of $251.4 million.

U.S. land revenue decreased 43% sequentially to $27.5 million due to lower levels of activity and the discontinuation of product and service offerings in markets presenting limited opportunity to breakeven on a cash basis. Gulf of Mexico revenue increased 16% sequentially to $16.4 million due to increased slickline and hydraulic workover and snubbing activity. International revenue decreased 28% sequentially to $52.8 million due to lower activity levels across all service lines.

Technical Solutions Segment

The Technical Solutions segment revenue in the first quarter of 2016 was $87.3 million, a 39% decrease from fourth quarter 2015 revenue of $144.1 million, which included a $22.9 million contract termination fee, and a 26% decrease from first quarter 2015 revenue of $118.1 million.

U.S. land revenue decreased 17% sequentially to $10.2 million primarily due lower well control activity. Gulf of Mexico revenue decreased 51% sequentially to $51.4 million due to lower levels of activity. The sequential comparison is also affected by a contract termination fee of $22.9 million that was recorded during the fourth quarter of 2015 and the discontinuation of the product line associated with that contract. International revenue decreased 2% sequentially to $25.7 million.

Conference Call Information

The Company will host a conference call at 11:00 a.m. Eastern Time on Friday, April 29, 2016. The call can be accessed from the Company's website at www.superiorenergy.com, or by telephone at 412-902-0030. For those who cannot listen to the live call, a telephonic replay will be available through May 13, 2016 and may be accessed by calling 201-612-7415 and using the pass code 13634383#.

About Superior Energy Services

Superior Energy Services, Inc. SPN, +8.56% serves the drilling, completion and production-related needs of oil and gas companies worldwide through its brand name drilling products and its integrated completion and well intervention services and tools, supported by an engineering staff who plan and design solutions for customers. For more information, visit: www.superiorenergy.com.

The press release contains, and future oral or written statements or press releases by us and our management may contain, certain forward-looking statements within the safe...


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