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Jun 30, 2021
Rpc Q2 2021 Earnings Report
RPC's financial performance increased, marked by revenue growth and improved profitability.
Key Takeaways
RPC, Inc. reported a significant increase in revenue for the second quarter of 2021, accompanied by improvements in operating loss and net loss compared to the previous year. The company saw growth in both Technical Services and Support Services segments, driven by higher activity levels and an improving economy.
Revenues increased by 111.4% compared to the second quarter of 2020, reaching $188.8 million.
Operating loss improved to $1.2 million compared to a $37.5 million loss in the prior year.
Net loss was reduced to $726 thousand, or $0.00 per share, compared to a $25.1 million loss, or $0.12 loss per share, in the second quarter of the previous year.
EBITDA for the quarter was $17.3 million, a significant improvement from negative $19.4 million in the same period last year.
Revenue by Segment
Forward Guidance
RPC anticipates higher drilling and completion plans due to stronger commodity prices, with increased activity expected in the Technical Services segment during the second half of the year. However, the industry's struggle to achieve net pricing improvements is expected to limit financial returns.
Positive Outlook
- High customer demand indicates strong activity.
- Customer base responding to higher commodity prices.
- Increased drilling and completion plans expected.
- Additional horizontal pressure pumping fleet activated.
- Success in passing through cost increases.
Challenges Ahead
- Significant customer-related operational delays.
- Extreme rain experienced in the Permian Basin.
- Pressure pumping revenues declined slightly.
- Revenues in nitrogen service line declined sequentially.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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