(RTTNews) - Onshore energy production services provider Key Energy Services, Inc. (KEG: News ) reported Wednesday a loss for the third quarter, hurt by rig retirement and asset impairment charges as well as a very sharp decline in revenues.

For the third quarter, loss attributable to shareholders was $124.94 million or $1.03 per share compared to a profit of $48.46 million or $0.39 per share in the prior year period.

On an adjusted basis, attributable loss for the three-month period was $24.11 million or $0.20 per share. Adjusted results exclude previously announced pre-tax charges of $159.8 million for rig retirements and asset impairments.

On average, 14 analysts polled by Thomson Reuters expected Key Energy to report a loss of $0.20 per share. Analysts' estimates typically exclude special items.

Revenues for the quarter more than halved to $237.67 million from $535.62 million in the third quarter of fiscal 2008. Analysts expected the company to generate revenues of $240.43 million during the quarter.

On a segmental basis, revenues from well servicing segment were $194.07 million versus $399.59 million, and revenues from production services slumped to $43.60 million from $136.03 million last year.
During the quarter, total costs incurred by Key Energy fell to $435.88 million from $458.08 million a year ago. Direct operating expenses for the period were $179.90 million versus $342.20 million in the 2008-year period.

In the preceding second quarter, the company had reported a net loss of $18.47 million or $0.15 per share, compared to net income of $44.01 million or $0.35 per share in the prior-year quarter. Total revenues for the second quarter dropped 52% to $241.46 million from $502.0 million in the second quarter of fiscal 2008.

For the nine-month period, Key Energy reported attributable loss of $142.51 million or $1.18 per share versus a profit of $126.96 million or $1.00 per share in the preceding year period. Year-to-date revenues plummeted to $811.12 million from $1.49 billion in the comparable period prior year.

Looking ahead, chairman, president and chief executive officer Dick Alario said, "We remain guarded about the rate of improvement in our North American oil markets; however, we are encouraged by our recent activity increases. Meanwhile, our international expansion effort continues to gain momentum. In addition to successfully increasing our market presence in Mexico, new equipment will begin arriving in Russia in the fourth quarter and should start working early in 2010."

To receive FREE breaking news email alerts for Key Energy Services Inc. and others in your portfolio

 1   2   Next Page