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Dec 31, 2021
Rpc Q4 2021 Earnings Report
RPC's financial performance improved with increased revenues and profitability.
Key Takeaways
RPC, Inc. reported a significant increase in revenue for Q4 2021, driven by higher customer activity and improved pricing, leading to a return to profitability with both operating and net income.
Q4 revenues increased by 80.5% compared to Q4 2020, reaching $268.3 million.
Operating profit for Q4 2021 was $20.1 million, a significant improvement from the operating loss of $21.6 million in Q4 2020.
Net income for Q4 2021 was $12.3 million, or $0.06 diluted earnings per share, compared to a net loss of $10.2 million, or $0.05 loss per share in Q4 2020.
EBITDA for Q4 2021 was $39.4 million, compared to negative $2.5 million in the same period of the prior year.
Rpc
Rpc
Forward Guidance
RPC anticipates continued growing activity levels and improved pricing in 2022. However, the operational environment is being impacted by personnel shortages and materials and parts shortages which may impact utilization and profitability in the near term.
Positive Outlook
- Strong current and forecasted commodity prices encourage customers to continue drilling and completion activities.
- Revenues grew due to higher pricing.
- New Tier IV dual-fuel pressure pumping fleet was placed into service late in the third quarter.
- Many indications of continued growing activity levels.
- Improved pricing is expected.
Challenges Ahead
- Operational environment is being impacted by personnel shortages exacerbated by the current COVID surge.
- Industry is facing materials and parts shortages impacting many essential inputs.
- Price increases for raw materials and components.
- Materials and parts shortages may impact utilization.
- Materials and parts shortages may impact profitability in the near term.