How the US Rig Count May Have Affected Core Laboratories in 3Q16



Core Laboratories’s revenues

In the past year, Core Laboratories’s (CLB) revenue has fallen. In 2Q16, CLB’s revenue fell 3.6% over 1Q16. Compared to 2Q15, revenues fell 26% in 2Q16. In comparison, McDermott International’s (MDR) 2Q16 revenues fell 3% over 1Q16.

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US rig count

In the past year through 2Q16, the US rig count fell 51%. The US rig count reached its multiyear high in September 2014. Since then, it has dropped 73%.

From June 30 until the week ended October 7, the US rig count gained 24% to close at 524. A higher rig count is expected to benefit CLB’s revenues and earnings in 3Q16.

Next, we’ll discuss what Core Laboratories’s management thinks about its value drivers.


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