RPC, Inc. has reported its third-quarter financial results for 2024, showing a decline in various key metrics compared to the previous quarter. The company's revenues decreased by 7% sequentially to $337.7 million. Net income was reported at $18.8 million, reflecting a significant 42% decrease from the previous quarter, with diluted earnings per share (EPS) at $0.09. The net income margin also decreased by 330 basis points sequentially to 5.6%.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $55.2 million, down 19% sequentially, while the adjusted EBITDA margin decreased by 240 basis points sequentially to 16.4%. These results were attributed to lower utilization and pricing in pressure pumping, although other service lines showed more stable revenues.
The company's segment operations also reflected the sequential comparisons. Technical services, which include pressure pumping, downhole tools, coiled tubing, cementing, and other offerings, reported revenues of $313.5 million, down 8% from the previous quarter. Operating income for technical services was $16.3 million, marking a significant 46% decrease from the previous quarter.
Support services, on the other hand, saw revenues of $24.2 million, representing a 7% increase from the previous quarter, with operating income at $5.3 million, up 21% sequentially.
In terms of the balance sheet, RPC, Inc. maintained a strong financial position, ending the third quarter with $276.9 million in cash and cash equivalents and no outstanding borrowings under its $100 million revolving credit facility. The company also paid $8.6 million in dividends in the third quarter and declared a regular quarterly cash dividend of $0.04 per share.
Today the company's shares have moved -7.0% to a price of $5.85. For the full picture, make sure to review RPC's 8-K report.
