Key Energy Services Inc. says it suffered a net loss of $23.4 million or $1.15 a share in the first quarter of 2019. It’s about the same loss it reported in the fourth quarter of 2018.
The 2018 fourth quarter losses totaled $23.1 million and $1.14 a share for the Houston, Texas company that has extensive operations in Oklahoma.
Total consolidated revenues for the first quarter were $109.3 million but the company said it experienced loss on the sale of assets of $0.4 million or 2 cents a share.
Excluding these items, the Company reported a net loss of $22.3 million, or $(1.09) per share for the first quarter of 2019.
Key’s President and Chief Executive Officer, Rob Saltiel, stated, “Our results in the first quarter of 2019 benefited from generally higher service prices and further reductions in our cost structure, offset in part by a slow start to completions activity, significant weather impacts and the payment of employment-related taxes. With higher oil prices and the seasonal improvements in weather and daylight hours, we expect our activity to improve across all business segments in the second quarter.”
First quarter 2019 Rig Services revenues were $65.0 million as compared to fourth quarter 2018 revenues of $69.1 million, with first quarter 2019 rig hours of approximately 151,300 hours. The decline in revenues was due to the slow start in completion activity, a lower oil price environment and weather effects, which continued until late in the quarter.
The segment generated operating income of $4.5 million (6.9% of revenues) and Adjusted EBITDA of $11.6 million(17.8% of revenue) in the first quarter of 2019 as compared to operating income of $4.1 million (5.9% of revenues) and Adjusted EBITDA of $11.0 million (16.0% of revenue) in the fourth quarter of 2018.
First quarter 2019 Fluid Management Services revenues were $19.0 million as compared to the fourth quarter 2018 revenues of $20.8 million.
First quarter 2019 Fishing & Rental Services revenues were $14.6 million as compared to fourth quarter 2018 revenues of $16.9 million. The segment generated an operating loss of $1.1 million and Adjusted EBITDA of $2.7 million (18.4% of revenue) in the first quarter of 2019 as compared to an operating loss of $1.2 million and Adjusted EBITDA of $4.4 million (26.0% of revenue) in the fourth quarter of 2018.
First quarter 2019 Coiled Tubing Services revenues were $10.7 million as compared to fourth quarter 2018 revenues of $10.5 million.
General and Administrative (G&A) expenses were $22.1 million for the first quarter of 2019 compared to $20.3 million in the prior quarter.
As of March 31, 2019, Key had total liquidity of $57.3 million, consisting of $35.7 million in unrestricted cash and $21.6 million of borrowing capacity available under the Company’s $100.0 million asset-based loan facility. This compares to total liquidity at December 31, 2018 of $74.3 million, consisting of $50.3 million in unrestricted cash and $24.0 million of borrowing capacity available under the Company’s $100.0 million asset-based loan facility.
