Basic Energy sees lower Q2 revenue
Oilfield services provider Basic Energy Services (BAS.N) said it expects its second-quarter revenue to be down sequentially due to lower activity across segments arising from weak natural gas markets.
“We are currently projecting that revenues for the second quarter will be 23-25 percent lower than the first quarter with each of our major business segments being equally affected,” company Chief Executive Ken Huseman said in a statement.
Basic Energy posted a loss of $4.57 in its first quarter, on revenue of $154.7 million.
Analysts on average are expecting the company to report revenue of $141.6 million for the second quarter, according to Reuters Estimates.
Huseman said the company experienced a further decline in activity in its fluid services and completion services segment due to weak natural gas markets.
He also said utilization in May was flat on a monthly basis as increased activity in its oil markets offset a decline in gas leveraged markets.
“Our expectations for the balance of 2009 are for modest monthly improvement in our overall utilization as demand in our oil-oriented markets offsets continued weakness in our gas-related markets,” Huseman said.
Basic Energy said drilling rig days for May were 113, producing a utilization of 41 percent, an year-over-year decrease of 88 percent but a sequential increase of 33 percent. [ID:nWNAB9912]
Shares of the company closed at $9.34 Monday on the New York Stock Exchange.