Superior Energy Services (SPN) Misses Q1 EPS by 7c, Revenues Miss

Superior Energy Services (NYSE: SPN) reported Q1 EPS of ($0.31), $0.07 worse than the analyst estimate of ($0.24). Revenue for the quarter came in at $467.2 million versus the consensus estimate of $493.15 million.

David Dunlap, President and CEO, commented, “First quarter results were in line with our expectations. U.S. land revenues were sequentially lower as we operated fewer pressure pumping fleets due to a weak environment for pricing and utilization. U.S. offshore results were also lower as activity levels skewed towards lower margin drilling activity. Also, as expected, completion tools revenue in the Gulf of Mexico decreased during the quarter after a strong finish to 2018. Despite the shift in activity mix, and expected seasonal lull experienced during the quarter, we believe that U.S. offshore activity will improve as the year progresses. International activity levels were stable as oil field activity continues to steadily increase in these markets.

“There remains considerable uncertainty around the North American service market this year, primarily due to the lack of visibility we have into our customers’ plans for capital expenditures during the second half of the year. Until we can gain confidence that our customers’ spending levels will support utilization and pricing levels that justify maintaining our assets in the field, an increasing proportion of our capital expenditures will be allocated toward offshore and international opportunities. Overall, we are committed to a level of capital discipline that will foster free cash flow growth and improved corporate returns.

“We believe that the strength of our business lies in the diversity of our product offerings and geographic reach, as demonstrated by the substantial year over year growth of our first quarter international revenue. This diversity is essential to the sustainability of our business and will become more pronounced as our results are increasingly supported by U.S. offshore and international oil field activity levels.”

For earnings history and earnings-related data on Superior Energy Services (SPN) click here.

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