RPC, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.
For the three months ended September 30, 2024, RPC generated revenues of $337.7 million, reflecting a 2.2% increase from $330.4 million in the same period of 2023. However, for the nine months ended September 30, 2024, total revenues decreased to $1,079.6 million from $1,222.9 million in the prior year, marking an 11.7% decline. This decline was attributed to lower demand in the oil and gas sector, influenced by a 14.8% decrease in the average domestic rig count and fluctuating oil and natural gas prices.
Operating income for the third quarter was $19.2 million, down from $22.7 million in Q3 2023, while for the nine-month period, operating income significantly decreased to $87.0 million from $195.7 million in the previous year. Net income for the third quarter rose slightly to $18.8 million from $18.3 million year-over-year, but for the nine months, it fell to $78.7 million from $154.9 million in 2023. Earnings per share for the third quarter increased to $0.09 from $0.08, but for the nine months, it dropped to $0.37 from $0.71.
RPC's Technical Services segment reported revenues of $313.5 million for Q3 2024, up from $303.1 million in Q3 2023, while Support Services revenues decreased to $24.2 million from $27.3 million. The company completed the acquisition of Spinnaker Oilwell Services, LLC on July 1, 2023, which has been integrated into RPC's operations and is expected to enhance its cementing business.
The company’s cash and cash equivalents increased to $276.9 million as of September 30, 2024, up from $223.3 million at the end of 2023. However, net cash provided by operating activities decreased to $255.2 million from $299.1 million in the same period last year, primarily due to lower net income, despite favorable changes in working capital.
RPC's effective tax rate decreased to 19.9% for Q3 2024 from 26.3% in Q3 2023, attributed to favorable adjustments in tax provisions. The company also declared a quarterly dividend of $0.04 per share, payable on December 10, 2024.
Overall, RPC's performance reflects challenges in the oil and gas industry, with strategic acquisitions aimed at bolstering its service offerings amidst fluctuating market conditions.
About RPC INC
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