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ATLANTA - RPC Inc (NYSE:RES) reported a 6% sequential increase in third-quarter revenue to $447.1 million, driven by improvements across most of its service lines, according to a press release issued Thursday. The oilfield services company, currently trading at $5 per share with a market capitalization of $1.08 billion, has shown resilience despite industry headwinds.
The oilfield services company posted net income of $13 million, up 28% from the previous quarter, with diluted earnings per share of $0.06. Net income margin increased 50 basis points sequentially to 2.9%. According to InvestingPro data, RPC maintains a P/E ratio of 20.06 and analysts expect the company to remain profitable this year with a forecasted EPS of $0.27 for fiscal 2025.
Pressure pumping revenue rose 14% from what the company described as "a soft second quarter," while its coiled tubing business increased 19%, supported by the deployment of a new large diameter unit.
"Our diversified offerings, strong brands, and balance sheet provide resiliency, yet the challenging environment continues to require disciplined execution," said Ben M. Palmer, RPC’s President and Chief Executive Officer.
The company noted signs of stabilization with August and September results higher than June lows. However, management cautioned about potential headwinds in the fourth quarter due to oil prices recently dipping below $60 per barrel, expected holiday slowdowns, and customer budget exhaustion.
RPC maintained a strong financial position with $163.5 million in cash and no outstanding borrowings under its $100 million revolving credit facility. InvestingPro analysis confirms RPC holds more cash than debt on its balance sheet, with liquid assets exceeding short-term obligations. The company’s board declared a regular quarterly cash dividend of $0.04 per share, payable December 10 to shareholders of record as of November 10, representing an annual dividend yield of 3.2%.Investors seeking deeper insights into RPC’s financial health can access the comprehensive Pro Research Report, available exclusively through InvestingPro, which covers this and 1,400+ other US equities with expert analysis and actionable intelligence.
The U.S. rig count averaged 540 during the quarter, down 5.4% sequentially and 7.8% year-over-year, reflecting broader industry challenges despite oil prices averaging $65.85 per barrel during the period.
The information in this article is based on a company press release statement.
In other recent news, Rice Acquisition Corp 3 successfully completed its initial public offering and private placement, raising $345 million. The company offered 34,500,000 units at $10.00 per unit, which included the full exercise of the underwriters’ over-allotment option for an additional 4,500,000 units. Each unit comprises one Class A ordinary share and one-sixth of a redeemable warrant. These warrants allow holders to purchase one Class A ordinary share at an exercise price of $11.50 per share. This development was officially reported in a statement filed with the Securities and Exchange Commission.
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