Parker Drilling sinks deeper into red

Parker Drilling, a Houston-based provider of offshore and onshore contract drilling services, sank deeper into red during the last quarter of 2016 as its revenues dipped. 

The driller on Wednesday reported a net loss of $48.9 million for 4Q 2016, on revenues of $94 million. For comparison, the company’s net loss for the same period of 2015 was $35.6 million while its revenues amounted to $148.7 million.

The net loss includes a pre-tax $0.9 million expense related to executive departures and a $6.8 million non-cash valuation allowance taken primarily against UK deferred tax assets largely relating to fixed assets.

The company’s Chairman, President and CEO, Gary Rich, said the results were in line with expectations in the face of ongoing market challenges.

Rich stated that, while U.S. land activity drove improvements, internationally, current activity levels remain low.

“However, we see increased rig tendering in many of our markets for work anticipated to begin in late 2017 or early 2018,” he added.

“We ended the quarter with $210 million in liquidity, up from $194 million at the end of the third quarter, including $120 million in cash and $90 million available on our undrawn revolver.

At the end of the fourth quarter, Parker’s contracted backlog was $379 million compared with $421 million as of September 30, 2016.

International & Alaska Drilling segment revenues were $61.5 million, a 5.8 percent decrease from 2016 third quarter revenues of $65.3 million. The decrease in revenues was primarily attributable to lower reimbursable activity partially offset by an increase in activity associated with the company’s Atlantic Canada O&M project.

To remind, Parker was in 2016 selected to provide operations and maintenance (O&M) services of the Hibernia Platform offshore Newfoundland and Labrador, replacing Paragon Offshore which had held the contract for several years.

For 2017, the company estimates total capital expenditures of $40 to $50 million.

Offshore Energy Today Staff

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