Higher costs see RPC Inc Q1 profit fall

Source: Energy Digital

Date :23/04/2008 05:07:03

Oilfield services company RPC, Inc. today announced its unaudited results for the first quarter ended March 31, 2008.

Hurt by higher costs, and competition in its service lines and markets in the United States, RPC reported earnings below market expectations.

Net income at the company nearly halved to $14.8 million or 15 cents a share.

Difficult quarter

RPC said its profitability was affected by increasing fuel costs and costs associated with recruiting personnel with its customers due to the current pricing and competitive environment.

“This was an extremely difficult quarter from an operating standpoint,” said Richard A. Hubbell, RPC's president and chief executive officer.

Generating revenue

Total revenue rose 15 percent to $197.3 million, above analysts' average estimate of $193.1 million, driven by higher capacity of revenue-producing equipment placed in service during the last twelve months.

“The average domestic rig count during the first quarter was 1,770, a 2.1 percent increase compared to the same period in 2007. The price of natural gas increased 20.4 percent, and the price of oil increased 67.3 percent,” said Mr. Hubbell.

Shares of the Atlanta, Georgia-based company closed at $16.87 Tuesday on the New York Stock Exchange.

April 23, 2008