Forbes Energy Reports Loss Yet Again
Forbes Energy Services Ltd. (FES), an oilfield services contractor, reported sequentially improved results for the first quarter of 2013, with a loss per share of 13 cents, narrower than the Zacks Consensus Estimate of a loss of 17 cents. Increased pricing pressures coupled with diminishing demand negatively impacted earnings.
Revenue: In the first quarter of 2013, total sales for Forbes Energy were $101.7 million, down 22.6% year over year, primarily due to shorter truck and rig hours. Revenues missed the Zacks Consensus Estimate of $110.0 million by 7.3%.
Segment Details: In the reported quarter, revenues from the Well Servicing segment was recorded at $50.2 million, a decrease of 4.0% compared with the year-ago quarter. Fewer 24-hour operational rigs led to the decline.
Revenue from Fluid Logistics segment came in at $51.6 million, facing a decline of 34.9% year over year, due to a reduction in truck hours.
Margins: General and administrative expenses amounted to $7.3 million, against $10.7 million recorded in the first quarter of 2012. Forbes Energy’s operating profit margin in the quarter plunged 818 basis points to 3.6% from 11.8% million reported in the year-ago quarter.
Balance Sheet: Exiting the first quarter 2013, Forbes Energy’s cash and cash equivalents were approximately $31.2 million, compared with $17.6 million in the previous quarter. Total debt balance stood at $302.5 million against $306.3 million in the preceding quarter.
Outlook: Forbes Energy believes that it is in line with the $20.0-$23.0 million capital expenditure guidance issued in the last quarter. The company also predicts a stable pricing environment in 2013.
Forbes Energy currently carries a Zacks Rank #3 (Hold). Other stocks worth a look in the oil & gas equipment & services sector are NSK Ltd. (NPSKY); carrying a Zacks Rank #1 (Strong Buy) along with Precision Castparts Corp. (PCP) and Worthington Industries Inc. (WOR), each carrying a Zacks Rank #2 (Buy).
Read the Full Research Report on PCP
Read the Full Research Report on WOR
Read the Full Research Report on NPSKY
Read the Full Research Report on FES
More From Zacks.com