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Mar 31, 2022
Rpc Q1 2022 Earnings Report
RPC's financial performance improved due to higher customer activity levels, pricing improvements, and a larger fleet of pressure pumping equipment in service.
Key Takeaways
RPC, Inc. reported revenues of $284.6 million for the quarter ended March 31, 2022, an increase of 55.9 percent compared to the first quarter of 2021. Net income for the first quarter of 2022 was $15.1 million, or $0.07 diluted earnings per share, compared to a net loss of $9.7 million, or $0.05 loss per share in the first quarter of the prior year.
Revenues increased by 55.9% compared to the first quarter of 2021.
Operating profit for the first quarter of 2022 was $23.0 million compared to an operating loss of $10.5 million in the first quarter of the prior year.
Net income for the first quarter of 2022 was $15.1 million, or $0.07 diluted earnings per share.
EBITDA for the first quarter of 2022 was $43.0 million, compared to $7.8 million in the same period of the prior year.
Rpc
Rpc
Rpc Revenue by Segment
Revenue by Segment
Technical Services Revenue
CapyFin.comSupport Services Revenue
CapyFin.com Forward Guidance
RPC is optimistic about its near-term operating environment given current and projected commodity prices and customer indications regarding their plans. The company is not planning aggressive growth capital expenditures, but has plans to activate idle equipment and expand its service capacity.
Positive Outlook
- Strong commodity prices and market dynamics are driving activity and pricing improvements in the oilfield.
- Customer activity levels improved and equipment utilization increased significantly.
- Demand for services increased and customers became less price sensitive.
- Finished the quarter with a full calendar and increasingly favorable market dynamics.
- Plans to activate idle equipment and expand service capacity.
Challenges Ahead
- Experienced some delays due to materials and personnel shortages and customer-related operational issues early in the quarter.
- Russia’s invasion of Ukraine tightened global oil and natural gas markets, causing significant price increases and uncertainty for both commodities.
- Changes in general global business and economic conditions, including the continued economic impact caused by the COVID-19 pandemic and fluctuations in prices of oil and natural gas.
- Risks associated with collections of accounts receivable from customers experiencing challenging business conditions.
- Risks of reduced availability or increased costs of both labor and raw materials used in providing services.
Revenue & Expenses
Visualization of income flow from segment revenue to net income