Parker Drilling 1Q profit soars on higher revenue

HOUSTON

Parker Drilling saw its first-quarter profit increased more than five-fold as the company handily navigated a shifting energy landscape.

The Houston drilling contractor and oilfield service company earned $26.4 million, or 22 cents per share, up from $4.8 million, or 4 cents per share, in the same quarter last year.

Revenue rose to $176.6 million from $156.2 million.

Profits beat the per-share consensus Wall Street predictions by a nickel, sending the company's sock up 3 percent.

Parker was able to adapt to the significant drop in natural gas prices and the shift in U.S. drilling activity toward oil and natural gas liquids. The company also cut operating costs by 12 percent to $94.9 million.

"The industry's increased spending to develop oil and natural gas resources worldwide is expected to lead to more international drilling activity, including an expanded reach into challenging environments that require safe and efficient operations and more fit-for-purpose drilling solutions," said CEO Robert Parker. "We believe these trends and Parker's balanced and diversified operations position us to continue to deliver solid results."

Rental tools revenue jumped 27 percent to $66.3 million, while U.S. barge drilling revenue surged 75 percent to $27.8 million and international drilling revenue rose 13 percent to $78.8 million, the company said.

Shares of Parker Drilling Co. rose 17 cents, or 3.3 percent, to $5.40 in midday trading.