(By Balachander) Superior Energy Services Inc. (NYSE: SPN) shares fell 3.24 percent in extended trading after the provider of specialized oilfield services forecast third-quarter earnings below market expectations.
The Houston-based company said earnings for the third quarter were hit by Hurricane Isaac's impact on operations in the Gulf of Mexico, a more rapid decline in the onshore U.S. rig count than expected, and unexpected delays in delivering a unique, Artic-specific spill containment system to a customer in Alaska.
"Directionally, we were correct in our assumptions about lower activity and utilization in the U.S. land market for the second half of 2012," CEO David Dunlap said. "However, the pace of reduction was greater than we anticipated as our customers have taken action to contain their 2012 spending to budgeted levels."
The company, however, said margins in most of its product and service lines are performing at or near planned levels, and the contracted pressure pumping business is performing as planned.
Superior Energy forecasts operating earnings per share between 52 cents and 55 cents, below consensus estimates of 66 cents for the three months ended September.
The stock, which has been trading in the 52-week range of $17.54 to $31.88, ended at $20.36 on Tuesday.