Parker Drilling Company (PKD) saw its loss narrow to $39.81 million, or $0.31 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $95.84 million, or $0.78 a share. On an adjusted basis, loss per share was at $0.31 for the quarter compared with loss of $0.18 a share in the same period last year. Revenue during the quarter dropped 24.70 percent to $98.27 million from $130.50 million in the previous year period. Gross margin for the quarter stood at negative 20.09 percent as compared to a negative 10.29 percent for the previous year period. Operating margin for the quarter stood at negative 27.61 percent as compared to a negative 17.83 percent for the previous year period.
Operating loss for the quarter was $27.14 million, compared with an operating loss of $23.27 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.42 million compared with $12.60 million in the prior year period. At the same time, adjusted EBITDA margin contracted 415 basis points in the quarter to 5.51 percent from 9.66 percent in the last year period.
"Parker continues to execute well in a difficult market and our first quarter results were in line with our expectations,” said Gary Rich, the Company chairman, president and chief executive officer. "Activity in the U.S. for both our rental tools and barge businesses improved in the first quarter. Our U.S. rental tools business performed well as U.S. land revenue growth of 37 percent outpaced U.S. land rig count growth of 27 percent and incremental margins for the segment, including land and offshore, were 67 percent. In the U.S. barge business, we mobilized one barge rig during the quarter and began operating two additional barge rigs in April. We are also in ongoing discussions to place up to two additional barge rigs into service by the middle of this year.
Working capital increases marginallyParker Drilling Company has recorded an increase in the working capital over the last year. It stood at $232.24 million as at Mar. 31, 2017, up 3.78 percent or $8.46 million from $223.78 million on Mar. 31, 2016. Current ratio was at 3.48 as on Mar. 31, 2017, up from 2.85 on Mar. 31, 2016. Days sales outstanding went up to 134 days for the quarter compared with 122 days for the same period last year.
Days inventory outstanding has decreased to 13 days for the quarter compared with 23 days for the previous year period.
Debt remains almost stable
Total debt of Parker Drilling Company remained almost stable for the quarter at $576.73 million, when compared with the last year period. Long-term debt of Parker Drilling Company remained almost stable for the quarter at $576.73 million, when compared with the last year period. Total debt was 51.06 percent of total assets as on Mar. 31, 2017, compared with 45.84 percent on Mar. 31, 2016. Debt to equity ratio was at 1.54 as on Mar. 31, 2017, up from 1.22 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
