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Last Update: 03-Oct-12 09:25 ET
Superior Energy shares fall 3% following news of negative effects of Hurricane Issac
Sup Energy Svcs (SPN $19.59 -0.77) The third quarter was negatively affected by Hurricane Isaac's impact on operations in the Gulf of Mexico, a more rapid decline in the onshore U.S. rig count than originally anticipated, and unexpected delays in delivering a unique, Artic-specific spill containment system to a customer in Alaska. Co said, "Our earnings for Q3 will be lower than we previously forecasted primarily due to the factors identified today. Directionally, we were correct in our assumptions about lower activity and utilization in the U.S. land market for the second half of 2012. However, the pace of reduction was greater than we anticipated as our customers have taken action to contain their 2012 spending to budgeted levels. Despite this slowdown and reduced revenue, margins in most of our product and service lines are performing at or near planned levels, and the contracted pressure pumping business is performing as planned. Our earnings in the U.S. are not hampered by supply chain, logistics or labor issues, simply by a slower market than anticipated. We also continue to work to complete the Arctic Containment System which will be deployed for the 2013 drilling campaign in Alaska."
