Wednesday, oil and gas drilling contractor Parker Drilling Co. (PKD), reported a sharp drop in profit for the first quarter, though revenues indicated a modest increase. Adjusted earnings, though down from last year, came in ahead of analysts' consensus by three cents. The company said that although industry outlook for 2009 remains subdued, it expects operating performance to improve as the year progresses.
The Houston, Texas-based company's first quarter net income dropped to $2.11 million or $0.02 per share from $23.20 million or $0.21 per share in the same quarter of last year.
Excluding items, net income for the quarter was $5.60 million or $0.05 per share, down from $18.14 million or $0.16 per share last year.
On average, five analysts polled by Thomson Reuters expected the company to earn $0.02 per share for the quarter. Analysts' estimates typically exclude special items.
Results for the quarter included non-routine net after-tax expense of $3.5 million or $0.03 per share related to the previously disclosed investigations by the Department of Justice and the Securities and Exchange Commission.
Quarterly revenues increased modestly to $174.00 million from $173.30 million in the year-ago quarter, topping Wall Street analysts' consensus estimate of $156.62 million.
Segment wise, U.S. barge drilling revenues for the quarter plunged 78% to $9.90 million from $45.90 million, due to lower utilization and dayrates for the Gulf of Mexico barge drilling fleet. International drilling revenues rose 13% to $77.40 million from $68.74 million, primarily as a result of higher average fleet utilization.
Rental tools revenues for the quarter dropped 4% year-over-year to $37.90 million from $39.50 million, while revenues for project management and engineering services increased to $32.10 million from $19.20 million last year. The company generated construction contract segment revenues of $16.75 million for the current quarter.
Total operating income for the quarter declined to $12.64 million from $35.40 million last year, while operating expenses increased to $148.30 million from $131.80 million in the same quarter of last year.
International average rig utilization for the quarter was 79%, higher than 73% reported last year. Gulf of Mexico barge rigs for the first quarter, however, declined to 25%, compared to the 77% reported in the prior-year quarter. Parker Drilling also announced on-schedule progress in the construction of the BP-owned Liberty rig and two Parker-owned arctic Alaska rigs.
The company said it anticipates an improvement in its operating performance as the year progresses hoping to gain from the benefit of a leaner cost structure.
PKD is currently trading at $3.62, up $0.38 or 11.73%, on a volume of $2.22 million shares on the NYSE.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.