Key Energy reports $24 million net loss for 3Q

Houston’s Key Energy Services reported third quarter 2018 revenues of nearly $135 million but a net loss of about $24 million or $1.18 a share.

The company has major operations in  Oklahoma and reported the consolidated revenues totaled $134.7 million while the net loss was $23.9 million.  But it also indicated there were gains of $1.9 million on the sale of assets or a dime a share.

Key Energy also cuts its net loss by $14.3 million in the quarter with a diluted loss per share improving by 72-cents a share compared to  a year ago.

Key’s President and Chief Executive Officer, Rob Saltiel, stated, “Since joining Key in August, I have visited each of the regions where we operate, meeting with our employees and our clients. It is clear to me that Key has a talented and dedicated employee base, and I am excited about our future growth opportunities. I have also taken steps to refine our organization in order to increase corporate connectivity to our field operations, reduce unnecessary layers, and improve our cost structure.

The company reported more growth for the quarter in the Permian Basin. But Saltiel stated further growth there has been constrained by a tight labor market.

Saltiel continued, “Conversations with our clients regarding 2019 plans suggest increasing demand for both production-related and completion-related services over 2018 activity levels as their budgets factor in higher oil prices and a moderation of pipeline constraints in the Permian Basin.”

The company’s third quarter 2018 Rig Services revenue dropped 4.1% to $77.1 million compared to the second quarter of the year.  Rig hours declined nearly 3.5 % and the company blamed the drop on a loss of business in California.

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