Key Energy Services Inc. (KEG) reported that its fourth-quarter income attributable to the company decreased to $13.49 million or $0.09 per share from $39.35 million or $0.26 per share in the same quarter last year.
Direct operating expenses for the quarter increased to $317.55 million from $290.14 million last year.
Revenues for the quarter declined to $466.47 million from $481.72 million in the year ago quarter.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.08 per share on revenues of $462.57 million for the quarter. Analysts' estimates typically exclude special items.
Key's Chairman, President and Chief Executive Officer, Dick Alario, said, "Our fourth quarter consolidated results were generally in line with expectations, reflective of activity declines in excess of typical seasonal factors."
The company forecasts first quarter 2013 consolidated revenue to decline approximately 5% compared to the fourth quarter and project first quarter earnings of $0.02 to $0.04 per share as a result of cost inefficiencies associated with underutilized assets and labor in its U.S. Rig Services business. Analysts expect the company to report earnings of $0.08 per share on revenues of $467.82 million for the first-quarter.
The company anticipates another good year in 2013 in our international segment following 67% revenue growth in 2012. The stalled activity growth in Mexico in the fourth quarter has already resumed, and assets delivered to Mexico and Colombia late in 2012 should fuel additional growth given a full year's contribution in 2013, the company said.
The company noted that its capital expenditure plan for 2013 is $210 million for equipment maintenance needs, including ongoing upgrades to Rig Services fleet.
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