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Mar 31, 2021
Rpc Q1 2021 Earnings Report
RPC reported a decrease in revenue but an improvement in operating and net losses compared to the previous year.
Key Takeaways
RPC, Inc. reported a decrease in revenues for the first quarter of 2021 compared to the same period in 2020. However, the company saw improvements in operating loss and net loss. The increase in revenues compared to the prior quarter was noted, driven by higher activity in most service lines.
First quarter revenues decreased by 25.1% compared to the same quarter in the previous year.
Operating loss improved to $10.5 million compared to $218.7 million in the first quarter of 2020.
Net loss improved to $9.7 million, or $0.05 loss per share, compared to a net loss of $160.4 million, or $0.76 loss per share in the first quarter of the prior year.
Revenues increased by $34.0 million compared to the prior quarter, or 22.9 percent, due to activity increases in most service lines.
Forward Guidance
Near-term industry activity is expected to be similar to the first quarter, adjusted for weather impact. Pricing for services is expected to remain intensely competitive, and financial returns do not support significant growth capital expenditures.
Positive Outlook
- Drilling and completion activities have improved.
- Higher oil prices support customer spending.
- Equipment and crew utilization increased.
- Efficiencies and streamlined operations improved.
- Job mix in several service lines contributed to sequential revenue growth.
Challenges Ahead
- Oilfield services industry is still faced with overcapacity.
- Pricing for services will continue to be intensely competitive.
- Financial returns do not presently support significant growth capital expenditures.
- Extreme winter weather in February hurt profitability.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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