The company has announced projections for its second-quarter performance across various segments. The Drilling Services segment is anticipated to maintain a stable rig count when compared to the first quarter. However, a slight decline in adjusted gross profit is expected due to a drop in average contracted revenue as older contracts conclude, combined with an uptick in seasonal costs.
In the Completion Services segment, activities are projected to remain consistent with the pace set towards the end of the previous quarter. Despite this stability, there is a potential risk of decreased demand driven by current oil price trends, which may impact completion services later in the quarter. As a result, adjusted gross profit for this segment is predicted to see a minor decline, factoring in possible idle periods.
For the Drilling Products segment, the company forecasts a flat trend in adjusted gross profit sequentially, supported by consistent activity levels in the United States. The typical seasonal decline due to the spring breakup in Canada is expected to be largely counterbalanced by increased revenue from international operations across the rest of the globe.
