Tuesday evening, oilfield services provider Superior Energy Services Inc. (SPN) reported a 43% drop in profit for the first quarter, as the year-ago quarter's results include earnings attributable to the operations of SPN Resources and a gain associated with the sale of the company's interest in that equity.
For the first quarter, the New Orleans, Louisiana-based company's net income declined to $56.81 million or $0.72 per share, from $99.53 million, or $1.21 per share, in the same period last year.
The year-ago quarter's results include earnings per share of $0.51 attributable to the operations of SPN Resources and a gain associated with the sale of 75% of the company's interest in that equity in March 2008.
On average, 10 analysts polled by Thomson Reuters expected the company to earn $0.68 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter declined to $437.11 million from $441.39 million in the comparable period of the previous year, but topped analysts' consensus estimate for the quarter of $418.33 million for the quarter.
Total cost of services, rentals and sales increased to $222.47 million from $204.12 million a year ago.
The company recorded a gain on sale of businesses of $37.89 million in the year-ago quarter.
Income from operations for the latest quarter declined to $99.79 million from $163.68 million in the previous-year quarter.
Interest income for the quarter declined to $51 thousand from $0.91 million in the year-ago period. Earnings from equity-method investments were $2.26 million, down from $3.96 million a year ago, and include $3.2 million of the company's share of non-cash unrealized earnings associated with mark-to-market changes in the value of outstanding hedging contracts.
On a segmental basis, well intervention segment revenue for the quarter rose 23% from a year ago to $288.06 million, while income from operations climbed to $61.70 million from $50.78 million in the same period last year.
Rental tools segment revenue decreased 3% from the year-ago period to $125.94 million due to decreased rentals of accommodations and stabilization equipment. Income from operations for the segment was $35.31 million, down compared to $45.76 million a year ago.
Marine segment revenue of $23.1 million was unchanged from the prior-year quarter. Income from operations increased to $2.78 million from $2.58 million in the year-ago quarter.
Commenting on the results, Terence Hall, Chairman and CEO of Superior Energy, said, "While year-over-year revenues were virtually unchanged, sequential declines were due to the combination of the rapid and significant decrease in activity in domestic markets and typical seasonal factors in the Gulf of Mexico. While we do not have the visibility to predict the duration or depth of the current industry down cycle, we believe our diversified business mix and production-oriented focus on well intervention services should continue to lessen the impact associated with the overall decline in drilling and other industry activity as it did in the first quarter."
SPN closed Tuesday's regular trading session at $17.81, down $0.30 or 1.66% on a volume of 1.26 million shares.
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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.