Friday, drilling contractor and service provider Parker Drilling Co. (PKD)said second quarter earnings fell from a year ago, despite moderate top line growth, reflecting higher operating expenses. On a per share basis earnings beat analysts estimate.
The Houston, Texas-based Parker's second-quarter net income plunged to $4.39 million or $0.04 per share from $21.8 million or $0.19 per share in the year-ago period.
Excluding non-routine items, the company reported a net income of $7.0 million or $0.06 per share, down from $23.6 million or $0.21 per share in the same quarter last year. On average, 6 analysts polled by Thomson Reuters expected the company to report earnings of $0.04 per share for the quarter.
Results for the recent quarter included non-routine net after-tax expense of $2.6 million or $0.02 per share, related to investigations regarding the Company's utilization of the services of a customs agent in certain countries and an internal investigation regarding U.S. economic sanctions related primarily to the company's operations in Turkmenistan. While the results for the year ago period included net after-tax expense of $1.7 million or $0.02 per diluted share for non-routine items.
Total revenues for the quarter increased 2% to $221.8 million from $216.7 million in the comparable period. Analysts estimated revenues of $169.7 million for the quarter.
U.S. Barge Drilling revenues declined 74% to $12.9 million from $49.4 million, due to lower utilization and reduced dayrates for the Gulf of Mexico barge drilling fleet. International Drilling revenues increased 2% to $79.3 million from $77.9 million, while Rental Tools revenues fell 30% to $28.2 million from $40.4 million. Revenues for Project Management and Engineering Services declined 18% to $23.9 million from $29 million.
Total operating expenses for the quarter increased to $194.5 million from $166.7 million in the comparable period last year, with construction contract expenses surging to $74 million from $19.05 million a year ago.
For the first half, Parker's net income fell to $6.5 million or $0.06 per share from $45.09 million or $0.40 per share in the corresponding period last year. Adjusted net income was $12.58 million or $0.11 per share, down from $41.78 million or $0.37 per share a year ago.
For the first six months, Parker reported a 1% increase in revenues to $395.7 million from $390.0 million for the same period a year ago.
PKD is trading at $4.62, up $0.04 or 0.87%, on a volume of about 363 thousand shares.
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