KLX Energy: Predicts worsening slowdown, shares drop to record low
05/12/2019 16:50
** KLX Energy Services Holdings shares KLXE.O drop 20.5%
to hit record low at $4.20; last down 16%
** The oilfield services provider swings to loss in Q3 amid
declining well completion activity from oil producers in North
America, forecasts slowdown to worsen in Q4 urn:newsml:reuters.com:*:nGNX4NKNk4
** "Expect customer activity to decline further in the
fourth quarter due to continued intense focus by our E&P
customers on free cash flow, as well as budget exhaustion and
seasonal issues" - KLXE
** Demand for oilfield services is waning because
exploration and production cos are drilling fewer rigs under
pressure from investors demanding capital discipline amid weak
oil prices
** Reports Q3 GAAP loss of $3.10/share, adjusted loss of
$0.22/share
** So far this year, KLXE is down ~81%
(Reporting by Shariq Khan in Bengaluru)
((Shariq.Khan@thomsonreuters.com; Twitter: @s_qakhan))