RigNet Profit Rises, Shares Up 7% - Update

(RTTNews) - RigNet Inc. (RNET) Wednesday reported an increase in profit for the fourth quarter, driven largely by a 21 percent growth in revenues. Both earnings and revenues for the quarter came in ahead of Wall Street estimates, sending shares surging seven percent in extended trade on the Nasdaq.

Houston, Texas-based RigNet's fourth-quarter profit rose to $5.4 million or $0.30 per share from $3.4 million or $0.20 per share last year. Adjusted earnings for the quarter were $0.38 per share.

On average, five analysts polled by Thomson Reuters expected earnings of $0.26 per share for the quarter. Analysts' estimates typically exclude special items.

RigNet, which provides communication services for oil and gas industry, said revenues for the fourth quarter grew 21.2 percent to $59.7 million from $49.3 million a year ago. . Analysts had a consensus revenue estimate of $57.84 million for the quarter.

The jump in revenue was due mainly to increase in sites served and increased revenue-per-site

Chief Executive Mark Slaughter said, "I was very pleased with our strong fourth quarter results, which included record revenue and EBITDA, reflecting continued strong growth in our core offshore rig communications business."

RigNet provides managed remote communications to the global upstream energy industry. The company serves offshore and onshore drilling rigs, production facilities and energy maritime, enabling drilling contractors, oil companies, and oilfield service companies to communicate.

RNET closed Wednesday's trading at $51.39, up $1.46 or 2.92%. The stock jumped $3.67 or 7.14%, in after-hours trade.