Oilfield services company Superior Energy Services Inc. (SPN) Tuesday reported a loss for the second quarter, hurt by non-cash special charges.
For the latest quarter, the company posted a loss of $68.92 million or $0.88 per share, in comparison with a net income of $71.37 million or $0.86 per share in the year-ago quarter. Excluding non-cash special charges, the company said adjusted net income was $27.61 million or $0.35 per share, compared to $81.54 million or $0.98 per share last year.
Quarterly results included non-cash, pre-tax charge of around $92.7 million or $0.76 per share after tax, related to the reduction in value of a portion of the company's long-lived intangible assets associated with its well intervention segment and non-cash, pre-tax charge of approximately $36.5 million or $0.30 per share after tax, related to the reduction in value of the company's remaining equity-method investment in Beryl Oil & Gas.
The second-quarter results also included losses of $15.7 million or $0.13 per share after tax related to Superior Energy Services' loss in equity-method investment in Beryl Oil & Gas for the three months ended June 30, 2009. Non-cash, unrealized losses of about $6 million or $0.05 per share after-tax, of the company's share of unrealized losses associated with mark-to-market changes in the value of outstanding hedging contracts at SPN Resources, LLC were also included in the latest-quarter results.
On average, eleven analysts polled by Thomson Reuters expected the company to report earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.
Pre-tax loss for the most recent quarter was $107.68 million, versus pre-tax income of $111.45 million in the prior year.
Quarterly revenues fell to $361.16 million from $457.66 million in the preceding year. Analysts anticipated revenues of $392.31 million for the quarter.
Segment-wise, well intervention segment generated revenues of $231.12 million, lower than $288.06 million in earlier year. Revenue for rental tools was down to $102.53 million from $125.94 million in the previous year. Meanwhile, marine revenues inched up to $27.51 million from $23.11 million in the former year.
For the first six months, Superior Energy Services reported a net loss of $12.11 million or $0.16 per share, compared to a net income of $170.9 million or $2.08 per share last year. Half-yearly revenues plummeted to $798.27 million from $899.05 million in the prior year.
The company noted that the year-ago results were adjusted to comply with financial accounting standards board staff position APB 14-1 on a retrospective basis.
Looking ahead, Terence Hall, chairman and chief executive officer, commented, "For the remainder of 2009, we expect domestic activity to stabilize and international activity to increase slightly, especially for rental tools in Latin America as we continue our expansion efforts into new markets. As a result, we anticipate that the Company's overall business will continue its relative industry performance."
SPN closed Tuesday's regular trade at $18.24, down $0.37, on a volume of 786 thousand shares. In the after hours, the company's shares fell $0.64 or 3.51% to $17.60.
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