Parker Drilling beats by $0.03, misses on revs; co believes that, internationally, its drilling activity is at or near the bottom (1.65)
- Reports Q1 (Mar) loss of $0.31 per share, $0.03 better than the Capital IQ Consensus of ($0.34); revenues fell 24.7% year/year to $98.3 mln vs the $99.53 mln Capital IQ Consensus.
- "Parker continues to execute well in a difficult market and our first quarter results were in line with our expectations," said Gary Rich, the Company's Chairman, President and CEO. "Activity in the U.S. for both our rental tools and barge businesses improved in the first quarter. Our U.S. rental tools business performed well as U.S. land revenue growth of 37% outpaced U.S. land rig count growth of 27% and incremental margins for the segment, including land and offshore, were 67 percent. In the U.S. barge business, we mobilized one barge rig during the quarter and began operating two additional barge rigs in April. We are also in ongoing discussions to place up to two additional barge rigs into service by the middle of this year. "Internationally, we believe our drilling activity is at or near the bottom and we continue to see positive indicators across select markets for projects with anticipated start-ups in late 2017 and into 2018. In our international rentals business, the startup of several new well construction contracts have now commenced and should positively impact activity going forward.
- Drilling services: Gross margin decreased 25.9% to $8.0 million from $10.8 million, and gross margin as a percentage of revenues was 12.4 percent, compared with 17.3 percent for the prior period
- Rental tool services: Gross margin increased 63.0% to $4.4 million from $2.7 million, and gross margin as a percentage of revenues was 13.0 percent compared with 8.5 percent for the prior period