Loading...
•
Jun 30, 2022
Rpc Q2 2022 Earnings Report
RPC's financial performance improved in the second quarter of 2022 due to higher customer activity and pricing improvements.
Key Takeaways
RPC, Inc. reported strong second quarter 2022 results with significant increases in revenue, operating profit, and net income compared to the previous quarter and the same period last year. The improvements were driven by higher customer activity levels, improved pricing, and a larger fleet of active pressure pumping equipment.
Revenues increased by 31.9% compared to the first quarter of 2022 and 98.9% compared to the second quarter of 2021.
Operating profit rose to $60.4 million, a substantial increase from $23.0 million in the previous quarter and an operating loss of $1.2 million in the second quarter of 2021.
Net income reached $46.9 million, or $0.22 diluted earnings per share, compared to $15.1 million, or $0.07 diluted earnings per share, in the prior quarter.
EBITDA increased by 87.4% compared to the prior quarter and significantly improved compared to the second quarter of 2021.
Rpc
Rpc
Forward Guidance
RPC anticipates continued high demand for its services due to strong market dynamics as it enters the third quarter. The company is allocating capital to maintain its pressure pumping fleet capacity and is refurbishing an existing fleet for deployment in early 2023, with a new fleet expected in the first half of 2023. RPC expects to generate strong cash flows.
Positive Outlook
- Market dynamics remain strong entering the third quarter.
- Continued high demand for services is expected.
- A pressure pumping fleet was reactivated at minimal cost.
- Capital is being allocated to maintain pressure pumping fleet capacity.
- The company anticipates to generate strong cash flows.
Challenges Ahead
- Changes in general global business and economic conditions.
- Fluctuations in prices of oil and natural gas.
- Risks associated with collections of accounts receivable.
- Reduced availability or increased costs of labor and raw materials.
- Impact on operations due to changes in regulatory and environmental laws.