Oilfield services and equipment company, RPC, Inc. (RES) Wednesday reported a loss for the fourth quarter against a profit last year, primarily due to a 33.1% decline in revenues affected by lower pricing for its services together with lower utilization, amid weak drilling activity.
For the fourth quarter, net loss was $5.20 million or $0.05 per share compared to net income of $20.41 million or $0.21 per share last year. On an average, five analysts polled by Thomson Reuters expected the company to report loss per share of $0.06 for the quarter. Analysts' estimate typically exclude special items.
Revenues decreased 33.1% to $152.42 million from $227.84 million in the fourth quarter last year, due primarily to lower pricing for the company's services coupled with lower utilization of equipment and personnel.
Segment wise, Technical services revenue dropped 27.7% to $135.89 million from $188.02 million in the comparable period last year due to competitive pricing and lower equipment utilization. Meanwhile, Support services revenue declined 58.5% to $16.52 million from $39.83 million in the same period last year, impacted by decreased customer activity and lower pricing in the rental tool service line. Both segments had operating losses, and according to the company, they were due to lower revenues and higher costs and expenses. Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the quarter declined 61.2% to $26.08 million or $0.27 per share from $67.23 million or $0.69 per share in the prior year.
Operating loss for the quarter was $7.04 million compared to operating profit of $36.69 million in the prior year.
"The average domestic rig count during the fourth quarter was 1,108, a 41.8 percent decrease compared to the same period in 2008. The average price of natural gas was $4.25 per Mcf, a 32.2 percent decrease compared to the prior year, while the average price of oil was $75.73 per barrel, a 31.2 percent increase compared to the prior year. The lower rig count and commodity prices experienced early in 2009, coupled with excess equipment capacity, has resulted in continued pressure on pricing for our services and utilization of our equipment," Richard Hubbell, RPC's President and Chief Executive Officer said.
For the full year, net loss was $22.75 million or $0.24 per share, compared to net income of $83.40 million or $0.85 per share last year. Five analysts were expecting loss per share of $0.25 for the full year. Revenues decreased 33.0% to $587.86 million from $876.98 million last year.
Separately, the company declared a regular quarterly cash dividend of $0.04 per share, payable March 10, 2010 to common stockholders of record at the close of business on February 10, 2010.
RES is currently trading at $12.25 per share, down 0.49% on the NYSE.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.