Parker Drilling Q4 Profit Falls, Revenue Tops View - Quick Facts

(RTTNews) - Parker Drilling Co. (PKD), a provider of contract drilling and drilling-related services, said fourth-quarter net income fell to $7.8 million or $0.06 per share from $10.17 million or $0.08 per share in the prior year.

On average, eight analysts polled by Thomson Reuters expected earnings of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues were $243.2 million, compared to $243.32 million last year. Analysts expected revenues of $230.24 million.

Gary Rich, chairman, president and CEO, said, "In the fourth quarter we delivered solid results in a challenging environment. The growing impact of declining oil prices on our business serving the U.S. Gulf of Mexico shallow and inland waters drilling market was counterbalanced by stronger performance elsewhere, including revenue gains in international markets."

Looking ahead Rich expects 2015 to be a challenging year. The decline in oil prices has led to a sharp reduction in drilling activity in U.S. land and Gulf of Mexico inland and shallow water markets. This also is putting increased pressure on prices for the company's services.

Parker expects the downturn in its U.S. markets to be severe and expects its international markets to be impacted as well, though with less severity.

Rich said the firm is taking actions across the company to lower its cost base, sustain utilization, manage cash and liquidity, and preserve its ability to respond as opportunities develop.