RPC, Inc. (RES) saw its loss narrow to $21.11 million, or $0.10 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $37.88 million, or $0.18 a share. Revenue during the quarter dropped 17.56 percent to $221 million from $268.09 million in the previous year period. Gross margin for the quarter expanded 282 basis points over the previous year period to 21.71 percent. Operating margin for the quarter stood at negative 14.58 percent as compared to a negative 21.41 percent for the previous year period.
Operating loss for the quarter was $32.22 million, compared with an operating loss of $57.40 million in the previous year period.
"Industry activity continued to increase into the fourth quarter of 2016," stated Richard A. Hubbell, RPC’s President and Chief Executive Officer. "The average U.S. domestic rig count during the fourth quarter of 2016 was 589, a decrease of 21.8 percent compared to the same period in 2015, but a 21.9 percent increase compared to the third quarter of 2016. The average price of natural gas during the fourth quarter was $3.04 per Mcf, an increase of 46.9 percent compared to the prior year and a 5.6 percent sequential increase. The average price of oil during the fourth quarter was $49.25 per barrel, a 17.0 percent increase compared to the prior year and a 9.6 percent increase compared to the third quarter of 2016.
Working capital decreases marginally
RPC, Inc. has witnessed a decline in the working capital over the last year. It stood at $377.59 million as at Dec. 31, 2016, down 1.86 percent or $7.16 million from $384.74 million on Dec. 31, 2015. Current ratio was at 4.72 as on Dec. 31, 2016, up from 4.58 on Dec. 31, 2015.
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