Dallas, Texas 02/27/2014 (FINANCIALSTRENDS) – Parker Drilling Company(NYSE:PKD) which is a oil and gas equipment and services provider saw its market cap plummet by close to 6 percent during trading on 26th February on the back of disappointing fourth quarter and full year 2013 results announcement.
President & Chief Executive Officer Gary G Rich while commenting about the full year operations which concluded in December 2013 has been quoted as saying that, “Our part drilling operation had a great year by providing reliable, efficient and safe equipment and cruise over many years, we believe we’ve cultivated a strong customer preference for our rigs in the inland waters of the Gulf of Mexico. While our 11 marketable rigs account for nearly half of the drilling rigs in the Gulf of Mexico barge market, we drilled approximately 60% of the wells that were drilled in that market during 2013.”
Providing a strong outlook for its 2014 operations, Parker Drilling Company(NYSE:PKD) has disclosed that it anticipates a huge build up in demand for drilling activity in U.S during the current fiscal and hence have forecasted growth in both revenue and business volumes.
The highlight of the earnings call was the announcement by Parker Drilling Company (NYSE:PKD) that it made solid gains in FY13 from its international operations. The huge demand for its drilling services in Kazakhstan and Iraq drove most of the demand. The firm hopes to leverage their presence to win more competitive wins as seen by the recent wins of four new contracts to build out new oil rigs in Kazakhstan. These moves by the oil and gas drilling equipment services provider has led to its utilization rates going up to 73 percent in 2013 as compared to 42 percent utilization in Fy12. In spite of the these positives, the investment community exited the stock in droves yesterday after the conference call, leading to the huge sell off in the stock.