Parker Drilling shares rise on strong 2Q outlook

Shares of Parker Drilling get a boost from strong 2nd-qtr profit and revenue predictions

Associated Press

HOUSTON (AP) -- Shares of Parker Drilling Co. rose Monday after the drilling contractor and oilfield services company issued a strong profit and revenue outlook for its most recent quarter.

For the quarter ended June 30, Parker Drilling expects net income between $7 million and $11 million. Revenue is projected at $215 million to $230 million.

Analysts, on average, expect net income of $7.1 million and $205.9 million in revenue, according to FactSet.

Parker said the estimates include contributions from the company's April acquisition of International Tubular Services Ltd.

Parker said that during the recent quarter its U.S. rental tools operations achieved higher average pricing that offset lower market activity.

Meanwhile, utilization increased at the company's international drilling rig fleet and its U.S. Gulf of Mexico drilling barge fleet logged higher average day rates while operating at full utilization.

Parker shares rose 28 cents, or 5 percent, to $5.84 in afternoon trading.