Oil States International Inc forecast a weak 2009, after experiencing a sharp decline in utilization of its drilling fleet and pricing pressures, as the global recession and credit freeze took its toll on commodity prices and customer spending plans.

In a conference call, Chief Executive Cindy Taylor forecast an utilization of 30 to 35 percent for the 12 rigs currently in operation. This compares with a 79 percent utilization seen in the fourth quarter.
Shares of Oil States fell 12 percent to $14.67 in Friday afternoon trade on the New York Stock Exchange.
Taylor expects rental tool segment revenue to decline 20 to 25 percent sequentially, as lower rig count drives down production.
“As a result of increased exports coupled with a declining rig count, industry inventories are estimated at seven months plus supply on the ground compared to approximately four months supply in October 2008,” Taylor said.
This will put pressure on pricing and margins in the company’s tubular services segment, Taylor added.
A weak Canadian dollar will also hurt the company’s revenue by $29 million, she said.
-------------Q4 results
Oil States International reported fourth-quarter earnings of $1.74 a share Thursday, excluding certain impairment charges, on revenue of $901.1 million.
It forecast first-quarter earnings of 96 cents to $1.06 a share. Analysts on average were expecting earnings of $1.05 a share, according to Reuters Estimates.
(Source: Reuters)