RES - RPC May Sacrifice Margin To Improve Sales In The Near-Term
Pricing pressure to drive RES’s margin lower
RPC, Inc. (RES) provides specialized oilfield services and equipment primarily to the E&P producers in the U.S. and the international markets. Since the negative drivers have already affected the company in the past two quarters, RES’s revenues may not decline much in Q1 2019 if the crude oil price does not crash. But its margin can continue to bleed. I do not think RES will be able to turn around in the short-to-medium term.
With the pressure pumping fleet utilization and pricing going down, RES is