Woodlands-based Newpark Resources, Inc. (NYSE: NR) announced late Thursday its first quarter results for 2015.
The oil services firm reported total revenues for the first quarter were $208.5 million, a 15 percent decline compared to $242.8 million in the first quarter of 2014.
Since last June, oil prices fell more than 50 percent, resulting in the firm having to make cutbacks in operations and reducing its workforce.
According to public records, as of December 2014 the firm had 2,478 employees but stated in the earnings report it has laid off more than 35 percent of its workforce, roughly 867 jobs.
“The first quarter proved to be very challenging, particularly in the North American Fluids business. North American Fluids revenues were down 41% sequentially, reflecting the sharp reduction in customer drilling activity combined with the effects of weaker pricing, lower wholesale barite sales, and a weaker sales mix, as customers slowed their product purchases and used their on-hand inventory in anticipation of laying down rigs,” stated CEO Paul Howes. He goes on to add, “Despite the challenges in North America, our mats business continued to perform exceptionally well, sustaining operating margins above the 40% level in the first quarter. While the business was impacted by the lower drilling activity and pricing compression in the period, we are continuing our efforts to diversify this business into non-exploration markets and new geographies.”
Although Newpark didn’t meet the mark with analyst expectations, the company remains very strong with $32 million in operating cash flow for the quarter and $92 million in the bank.
“This strong balance sheet position provides us with exceptional flexibility to continue executing our long-term strategy, despite the challenging North American environment,” concluded Howes.”
Newpark Resources, Inc. is a leading worldwide provider of drilling fluid systems and composite matting systems used in oil and gas markets.