Key Energy Services, Inc., the Houston firm with a regional field office in El Reno, Oklahoma not to mention 7,500 employees worldwide reported fourth quarter 2018 consolidated revenues of $117.2 million. But it also said it suffered a net loss of $23.1 million or $1.14 a share as the industry experienced a decline in some drilling activity and of completions.
The quarterly revenues compared to $134.7 million and a net loss of $23.9 million or $1.18 a share in the third quarter of 2018.
For the year, Key Energy had consolidated revenues of $521.7 compared to the $436.2 million reported in 2017 The 2018 revenues increased $85.5 million or 19.6%. Key managed to reduce its net loss by $31.8 million to $88.8 for the full year 2018 compared to the $120.6 million reported for all of 2017.
Full year 2018 results include expenses of $5.2 million, or $0.26 per share, associated with certain equity awards, gains on sale of assets of $9.6 million, or $0.47 per share, and costs associated with executive changes of $1.2 million, or $0.06 per share. Adjusted EBITDA for the full year of 2018 improved by $31.2 million to $22.0 million from negative EBITDA of $9.2 million in 2017.
Key’s President and Chief Executive Officer, Rob Saltiel, stated, “Our fourth quarter results were impacted by a general reduction in activity due to the completion of clients’ 2018 budgets, the decline in oil prices from October onward and the seasonal holiday slowdown.”
“Despite the decline in activity and revenues, our results benefited from price increases during the fourth quarter and our success in lowering our cost structure. These factors lessened the impact on our net loss and Adjusted EBITDA from the quarter-to-quarter decline in revenue,” added Saltiel.
He anticipates improved revenue for the first quarter of 2019 of one to 5%.
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