March 14, 2017 / 9:00 PM / 4 months ago

CORRECTED-Keane Group posts bigger loss; sees higher Q1 gross revenue (March 14)

2 Min Read

(Corrects story to say Keane Group is an oilfield services company and not an oil driller; removes reference to company posting bigger loss due to higher costs, oil producers putting more rigs to work, and Keane's costs rising on increased drilling activity; also corrects headline and dateline)

March 14 (Reuters) - Oilfield services company Keane Group Inc reported a bigger loss for the fourth quarter, and the company forecast an increase in first-quarter gross revenue.

A significant increase in demand from oil producers would also allow the company to comfortably commission a part of its idle fleet through 2017, Chief Executive James Stewart told Reuters.

Keane Group said the continuation of present market conditions would result in a sequential gross revenue increase of 30 percent to 40 percent in the first quarter of 2017.

Keane Group's net loss widened to $38.5 million, in the fourth quarter ended Dec. 31, from a loss of $25.7 million, a year earlier.

Revenue nearly tripled to $151 million.

The company's quarterly costs more than doubled to $180 million.

While pricing continues to improve, input cost inflation, which includes sand costs and pressure on wages, would continue to be a headwind for the industry, CEO James Stewart said. (Reporting by Vishaka George in Bengaluru; Editing by Shounak Dasgupta)

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