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Parker Drilling Company Reports Operating Results (10-Q)

November 06, 2009 | About:
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10qk

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Parker Drilling Company (PKD) filed Quarterly Report for the period ended 2009-09-30.

Parker Drilling Company provides high-performance contract drilling solutions rental tools and project management services to the worldwide energy industry. Parker Drilling Company has a market cap of $596.4 million; its shares were traded at around $5.14 with a P/E ratio of 8.9 and P/S ratio of 0.7. Parker Drilling Company had an annual average earning growth of 3.7% over the past 10 years.

Highlight of Business Operations:

We recorded net income of $7.1 million for the three months ended September 30, 2009, as compared to net income of $17.8 million for the three months ended September 30, 2008. Operating gross margin was $16.2 million for the three months ended September 30, 2009 as compared to $52.3 million for the three months ended September 30, 2008.

Revenues in our Americas region decreased by $10.1 million mainly due to lower utilization and lower average dayrates. Revenues in our CIS AME region decreased by $12.2 million primarily due to three fewer rigs working during the period, with some offset resulting from improved dayrates on contracted rigs. In our Asia Pacific region, revenues decreased $6.0 million due to our operations ending in Papua New Guinea earlier in the year.

Revenues for this segment decreased $32.4 million to $12.4 million for the quarter ended September 30, 2009 as compared to the quarter ended September 30, 2008. The decrease in revenues was primarily due to the market downturn which caused utilization to drop to 33 percent for the current quarter as compared to 79 percent in the same period in 2008 and a significant decrease in average dayrates from $39,900 to $26,200.

Rental tools revenues decreased $22.1 million to $23.9 million during the current quarter as compared to the third quarter of 2008. Lower overall demand has led to increased discounting, impacting both revenues and gross margin. Rental tools operating gross margins, excluding depreciation and amortization, decreased $16.1 million to $11.7 million for the current quarter as compared to the third quarter of 2008.

Income tax benefit was $9.2 million for the third quarter of 2009, as compared to income tax expense of $19.7 million for the third quarter of 2008 which includes the reversal of a $3.1 million reserve for 2007 foreign tax credits. The decrease in income tax expense in the third quarter of 2009, compared to the third quarter of 2008, was primarily due to lower pre-tax income in the third quarter of 2009, as well as an incremental tax benefit of $6.1 million for crediting foreign taxes previously deducted.

We recorded net income of $13.6 million for the nine months ended September 30, 2009, as compared to net income of $62.9 million for the nine months ended September 30, 2008. Operating gross margin was $69.1 million for the nine months ended September 30, 2009 as compared to $143.8 million for the nine months ended September 30, 2008.

Read the The complete ReportPKD is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC.

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