Superior Energy’s 3Q Income at USD 69.8 Mln (USA)

Superior Energy Services, Inc. announced third quarter 2013 net income of $69.8 million, or $0.43 per diluted share, on revenue of $1,188.6 million.

These results compare with third quarter 2012 net income of $93.9 million, or $0.59 per diluted share, on revenue of $1,179.7 million.

For the nine months ended September 30, 2013, the Company recorded net income of $202.1 million, or $1.26 per diluted share, on revenue of $3,483.8 million. For the nine months ended September 30, 2012, the Company recorded net income from continuing operations of $306.9 million, or $2.07 per diluted share, and net income of $289.7 million, or $1.95 per diluted share, on revenue of $3,389.8 million.

During the third quarter of 2013 the Company reduced its annual effective income tax rate from 37% to 35%, resulting in a benefit of approximately $6.0 million.

David Dunlap, President and CEO of the Company, commented, “As previously announced, the persistent flat horizontal rig count in the U.S. land markets has created a market environment characterized by oversupply and increased competition for several completions and production-related services. As a result, our U.S. land revenue declined about 1% from the second quarter and gross profit margins for several service lines were lower than the second quarter.

“We continue to experience strong growth in Gulf of Mexico and international market areas. Our Gulf revenue increased 7% sequentially as demand for our drilling products and services and completion tools in the deepwater continue to be the main drivers. In addition, we successfully completed multiple well control projects. International revenue grew 8% sequentially, with the main catalysts being continued expansion of our drilling products and services, as well as improved activity levels for our subsea inspection, repair and maintenance services in the Asia Pacific market area. Year-to-date, our Gulf of Mexico revenue has increased 32% and international revenue has grown 13%. As a result, our revenue from these market areas represents almost 40% of our total revenue for the first nine months of 2013.

“We expect margin pressure to continue through the fourth quarter in the U.S. land market areas. In addition, we anticipate typical, end-of-year seasonal factors will impact U.S. land and Gulf of Mexico activity.”

[mappress]

Press Release, October 28, 2013