RigNet Reports Q4 Earnings; Shares up 7%
RigNet (NASDAQ: RNET) announced better-than-expected fourth quarter and full-year earnings after Wednesday's close. Shares of the Houston-based company are up nearly $3.66 per share, or 7.12 percent, after they were already up $1.46, or 2.92 percent.
Record revenue of $59.7 million, which represents a 21.2 percent year-over-year increase, and a five percent increase over the third quarter.
RigNet had a record quarterly Adjusted EBITDA of $15.2 million, a 28.7 percent increase over the same quarter last year and a 5.2 percent increase over the previous quarter.
CEO and president Mark B. Slaughter commented, "I was very pleased with our strong fourth quarter results, which included record revenue and EBITDA, reflecting continued strong growth in our core offshore rig communications business. Subsequent to year-end, we closed the Inmarsat strategic transaction on January 31 and have integration efforts well underway.
"We are delighted with our new long-term relationship with Inmarsat that includes our acquisition of their Enterprise Energy business unit as well as our becoming a premier distribution partner in oil and gas for their Global Express and L-band service platforms. This transaction brings us broadened services and capabilities that will better serve our customers and position the Company to enhance returns to stockholders. Looking forward, we are maintaining a positive view of the market environment as we advance our strategy of becoming a technology solutions provider across the life of the field."
Shares of RigNet have been steadily pacing upward for the past month, ranging from $42 per share to $55 per share.
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