Thursday, onshore contract drilling services provider Patterson-UTI Energy, Inc. (PTEN) reported a loss for the second quarter, as revenues plunged on low levels of drilling activity, amid continued weakness in natural gas prices.
For the quarter, the Houston, Texas-based company posted a net loss of $17.74 million or $0.12 per share as against a net profit of $81.42 million or $0.52 per share in the second quarter of fiscal 2008.
On an average, 22 analysts polled by Thomson Reuters expected the company to report a loss of $0.12 per share. Analysts' estimates typically exclude special items.
Patterson's revenues for the quarter plunged to $160.76 million from $526.28 million in the prior-year quarter. Analysts expected the company to generate revenues of $166.67 million during the quarter.
Revenues from contract drilling were $101.72 million compared to $416.84 million, while revenues from pressure pumping declined to $33.62 million from $57.09 million. Revenues from drilling and completion fluids were $20.27 million as against $38.75 million, and revenues from oil and natural gas production and exploration plummeted to $5.17 million from $13.61 million last year.
Chief executive officer Douglas Wall said, "The continuing weakness in natural gas prices has resulted in low levels of drilling activity, which is reflected in our financial and operating results for the second quarter of 2009."
During the quarter, the average rigs operated were much lower at 63 from 244 rigs operated in the year-ago quarter. "--the severe downturn in our industry affected all of our regions and all sizes of rigs," stated chairman Mark Siegel.
For the first half, the company reported a net loss of $1.54 million or $0.01 per share compared with a net profit of $158.83 million or $1.01 per share in the same period last year. Revenues for the year-to-date period slumped to $456.80 million from $1.03 billion in the corresponding period prior year.
Looking forward, for the rest of the year, Patterson expects to have an average of nearly 29 rigs under term contracts. The company also anticipates to have an average of about 28 rigs in 2010, and 21 rigs in 2011 under existing long-term contracts.
Patterson also declared a quarterly cash dividend on its common stock of $0.05 per share as against $0.16 per share a year ago, payable on September 30, 2009 to shareholders of record as of September 15, 2009.
PTEN is currently trading at $14.36 per share, up 0.91%, on the Nasdaq.
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