Hercules Offshore Posts $48.3 Million 3Q Loss

Offshore drilling services company Hercules Offshore Inc. said Wednesday it posted a $48.3 million third-quarter loss, citing a steep drop in U.S. exploration and production capital spending.

Hercules' loss amounted to 50 cents per share and compared with a profit of $31.7 million, or 36 cents per share, in the same quarter last year.

Excluding one-time items and discontinued operations, the company posted an adjusted loss of $37.2 million, or 38 cents per share, in the latest quarter.

Revenue dropped by half to $159.3 million from $315.7 million

Analysts polled by Thomson Reuters expected a loss of 35 cents per share on $158.3 million in revenue.

Hercules attributed the loss to one of the most severe declines ever in U.S. exploration and production capital spending. The results were also hurt by downtime on two of the company's international offshore rigs.

Domestic offshore revenue fell to $19 million from $112.7 million a year ago. Offshore operating days dropped 75 percent to 424 while average offshore revenue per day per rig fell 34 percent to $44,715.

Inland revenue dropped to $2.4 million from $44.4 million, while inland operating days fell to 116 from 1,142 in the prior-year period. Average revenue per day per rig dropped 46 percent to $21,009.

Hercules shares fell 10 cents to $5.73 in midday trading.

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