Key Energy shares down on expiry of Mexico rigs contracts
BANGALORE, April 14
BANGALORE, April 14 (Reuters) - Shares of Key Energy Services Inc (KEG.N) fell as much as 10 percent on Wednesday, a day after the oilfield services company said contracts for 14 of its rigs with Mexico's state oil monopoly Pemex expired at the end of the first quarter.
However, Key Energy said three of the rigs in the Chicontepec field are being relocated at Pemex's request.
RBC Capital Markets analyst Victor Marchon said the stock fell as the reduced activity in Mexico caused concern among investors.
"They were able to put three of (the) 14 rigs back to work. But for remaining 11, they still have to find home," Marchon said, adding that half of the company's rigs in Mexico were out of contract now.
Shares of the company were down 21 cents at $10.32 in mid-day trade on the New York Stock Exchange. Earlier in the session, they touched a low of $9.44.
For the alerts, please double click [ID:nWEN2694] (Reporting by Vinay Sarawagi in Bangalore; Editing by Maju Samuel)