July 27 (Reuters) - Basic Energy Services Inc, an oilfield services provider, expects sales to dip in the current quarter as flat demand and equipment oversupply keep rates low.
Daily rates may fall over the next several quarters as new rigs have entered the market and explorers have scaled back activity due to softer oil prices, CEO Ken Huseman said on a conference call on Friday.
U.S. crude prices have fallen more than 9 percent so far this year.
Lower daily rates will likely trim third-quarter revenue by as much as three percent compared to the second quarter, Huseman said. He also added that a seasonal downturn in the fourth quarter will be more pronounced than usual this time.
A drop of three percent would mean sales of about $350.3 million in the third quarter. Analysts, on the other hand, estimate a revenue of $369.6 million on average, according to Thomson Reuters I/B/E/S.
The Midland, Texas-based company posted a lower-than-expected profit for the second quarter on Thursday as margins failed to keep up with a 22 percent increase in revenue.
Quarterly profit at Basic Energy, whose main competitors are Key Energy Services Inc and Nabors Well Services Co, has failed to meet analysts’ expectations for the last three quarters.
Basic Energy shares have fallen about 50 percent this year. They were down 2 percent at $9.76 in afternoon trading on the New York Stock Exchange on Friday.