Superior Energy Services, Inc. (SPN) saw its loss narrow to $211.24 million, or $1.40 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $237.40 million, or $1.58 a share. On the other hand, adjusted net loss for the quarter widened to $111.64 million, or $0.74 a share from a loss of $61.28 million or $0.41 a share, a year ago.
Revenue during the quarter plunged 34.99 percent to $354.42 million from $545.15 million in the previous year period. Gross margin for the quarter contracted 1768 basis points over the previous year period to 9.39 percent. Operating margin for the quarter stood at negative 56.08 percent as compared to a negative 51.31 percent for the previous year period.
Operating loss for the quarter was $198.75 million, compared with an operating loss of $279.73 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $125.60 million compared to operating loss of $67.89 million in prior year period.
"Our industry continued to transition toward recovery in U.S. land markets during the fourth quarter," said David Dunlap, president and chief executive officer. "During the quarter, our customers gradually increased their activity levels and began to project a bias towards spending growth in 2017. Our activation of idle equipment began in the third quarter of 2016 and accelerated in the fourth quarter."
Working capital drops significantly
Superior Energy Services, Inc. has witnessed a decline in the working capital over the last year. It stood at $437.02 million as at Dec. 31, 2016, down 48.38 percent or $409.53 million from $846.55 million on Dec. 31, 2015. Current ratio was at 2.27 as on Dec. 31, 2016, down from 2.89 on Dec. 31, 2015.
Debt comes down
Superior Energy Services, Inc. has recorded a decline in total debt over the last one year. It stood at $1,284.60 million as on Dec. 31, 2016, down 20.62 percent or $333.62 million from $1,618.22 million on Dec. 31, 2015. Total debt was 37.02 percent of total assets as on Dec. 31, 2016, compared with 32.93 percent on Dec. 31, 2015. Debt to equity ratio was at 0.99 as on Dec. 31, 2016, up from 0.73 as on Dec. 31, 2015.
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