Shares of RPC, an oilfield services company, experienced a 9% decrease due to a decline in demand for their main service line, pressure pumping.
The stock fell to $7.90 during the premarket session, resulting in a 9% drop. Throughout the year, shares were down by 2% at the close of Tuesday's trading.
During the third quarter, RPC reported sales of $330.4 million, which is approximately 28% lower compared to last year's figures. This amount fell short of analysts' expectations for sales, which were projected to reach $376.7 million.
Additionally, RPC's earnings per share were 8 cents, missing analysts' expectations of 24 cents per share.
According to Chief Executive Ben Palmer, business remained stable across the company's various service lines, excluding pressure pumping. Unfortunately, demand for pressure pumping did not recover as anticipated by the company.
Pressure pumping has been a significant contributor to RPC's revenue in 2022. The company previously noted that the growth in shale-related production activity had driven an increased demand for pressure-pumping services in recent years.
Redefining Success Amidst a Changing Landscape
While RPC faces challenges in its pressure pumping service line, the company remains committed to adapting and finding new avenues of success in today's evolving market.