Patterson-UTI Energy Reports Bigger Loss than Expected

Posted by Michelle Howard
Thursday, February 8, 2018
Oil and gas driller Patterson-UTI Energy Inc, dealing with the fallout of a drilling accident that killed five workers last month, reported a bigger-than-expected quarterly loss on Thursday as expenses more than doubled.

The accident at an oil well in Oklahoma in January has turned the spotlight on the Houston-based company's safety record and on safety in the shale industry in general as President Donald Trump seeks to boost U.S. oil output.

The accident is still being investigated and Patterson CEO Andy Hendricks did not give any update on Thursday.

"There is nothing more important to us than the safety of our employees and others we partner with in the field," he said in a statement.

In the fourth quarter ended Dec. 31, Patterson earned $8,010 per day on average from its 161 active rigs. Analysts at Jefferies had estimated earnings of $7,279 for the period.

The company reported a net profit of $195.4 million, compared to a loss of $78.1 million a year earlier, benefiting from a nearly $227 million gain from new U.S. tax laws.

Excluding one-time items, Patterson reported a loss of 10 cents per share, bigger than analysts' average estimate of an 8-cent loss, according to Thomson Reuters I/B/E/S.

Expenses jumped to $809 million from $360.1 million.

Patterson's shares fell 2.2 percent to $21.37 on Thursday morning.

Revenue climbed to $787.3 million from $246.9 million a year ago, helped by higher drilling activity. Analysts had expected revenue of $764.5 million.

Reporting by Ahmed Farhatha in Bengaluru
Categories: People & Company News Finance Energy

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