NOW Inc. revenues drop by a third
NOW Inc. reported a net loss of $44 million, or 40 cents per fully diluted share, for its second quarter, compared to a net loss of $19 million, or 18 cents per share, in the same period of 2015.
Revenues for the quarter were $501 million, a decrease of 33 percent from $750 million in the same quarter of 2015.
“Oil prices surged in the second quarter compared to the first, generating an uptick in rig activity during the back half of the quarter. However, the market remains uncertain as oil prices have since retreated back into the $40 range. Despite these mixed signals, we remain focused on removing costs from our customers’ supply chain, tightly managing our healthy balance sheet and diligently integrating recent acquisitions,” said Robert Workman, president and CEO.
Second quarter revenues for the United States were $337 million, down six percent from the first quarter of 2016, or down 8 percent when ignoring the favorable impact of acquisitions, amid 24 percent fewer rigs being active. Revenues decreased 32 percent from the second quarter of 2015, or 41 percent when excluding acquisitions, significantly outpacing the United States rig count decline of 54 percent in the same period.
Canada revenues were $55 million, down 13 percent compared to the first quarter of 2016 and down 38 percent from the second quarter of 2015. These declines were driven by historically low levels of operating activity, where Canada rig counts dropped 70 percent sequentially and 51 percent from the second quarter of 2015.
International operations generated second quarter revenues of $109 million, down 15 percent from the first quarter of 2016 and down 34 percent from the second quarter of 2015, versus international rig count declines of seven percent and 19 percent, respectively.
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