Key Energy Services, Inc. (KEGX) saw its loss narrow to $130.75 million, or $0.81 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $640.16 million, or $4.06 a share.

Revenue during the quarter plunged 42.10 percent to $102.41 million from $176.86 million in the previous year period. Gross margin for the quarter expanded 486 basis points over the previous year period to 6.19 percent.

Operating loss for the quarter was $109.59 million, compared with an operating loss of $738.18 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $14.41 million compared to negative $13.33 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 14.07 percent for the quarter compared to negative 7.54 percent in the last year period.

Key's president and chief executive officer, Robert Drummond, stated, "During the third quarter we announced our intention to pursue a prepackaged bankruptcy in order to reduce the Company's debt burden and better position the Company for a market recovery. With our confirmation hearing scheduled for December 6, 2016, we expect to emerge from the proceedings shortly thereafter. Given the tremendous work by our managers and employees, we now have a significantly leaner organization and operating cost structure, in addition to our restructured balance sheet. These structural changes to our operating costs and the reduced debt upon emergence from the bankruptcy process will allow us to deliver improved financial and operating results as the market recovers. "The third quarter marked the first quarterly sequential improvement in U.S. revenue in two years. While this is a positive signal for an improving market, this improvement was primarily activity driven with pricing remaining flat."