Superior Energy Services, Inc. (NYSE:SPN) reported a net loss from continuing operations of $57.2 million for Q3 2017, on revenue of $506 million compared to a net loss of $62 million for Q2 2017, on revenue of $470.1 million. The net loss from continuing operations in Q3 2016 came at $113.9 million, on revenue of $326.2 million.
The details
Superior Energy posted a pre-tax charge of $9.9 million for decline in value of assets during the Q3 2017. The resulting adjusted net loss stood at $50.5 million in Q3 2017 compared to an adjusted net loss of $110.9 million, for the third quarter of 2016. In addition, the firm projects that Hurricane Harvey linked interruptions impacted its pre-tax losses by around $5 million.
David Dunlap, the CEO and President, expressed that discounting the impact of Hurricane Harvey, the performance in Q3 2017 was as expected. While the firm was spared any notable long-term harm from the storm, they did have several employees directly impacted in and close to the Houston area. Their firm’s response in helping those employees was immediate and showcases the core values that everyone at company upholds.
In U.S. land industry there was a continued growth in service intensity and customer demand, mainly across completion oriented product lines. Their consumers continue to thrust the technical limits of their well and closure designs, and are also aggressively working on activity levels as oil prices recuperate. It is not startling that as a result, Superior Energy start to see supply chain stress and augmented non-productive time as the quarter advanced, principally in the Permian Basin. The CEO anticipate these inefficiencies to eliminate over time.
In the Gulf of Mexico, revenue surged during the quarter, led mainly by company’s completion services business. Irrespective of persistent low levels of drilling activity in this area, and a subdued outlook for improvement, the company’s performance reflects the benefit of its diverse service and product line portfolio.
