Oil Sector Gushing, Despite BJS Loss

(Updated for afternoon price changes)

HOUSTON (TheStreet) -- BJ Services(BJS Quote) reported a net loss of one cent for the fourth quarter, a second consecutive quarterly disappointment for the oil services company.

The weak earnings were weak to a much lesser degree than those of the second quarter, when the company shocked the Street with a loss as opposed to income. Analysts had drastically cut estimates as a result for this quarter -- to three cents -- but the company came in low of that target, too.

The overall message from the numbers was this: slightly better (bad) numbers than the previous quarter, some sequential increases, but still an ugly picture compared to the year ago period.

The oil services sector has struggled as a whole in recent months on very weak U.S. drilling activity. Nevertheless, BJS' shares were weathering the poor earnings well on Monday morning.

The company announced, alongside its earnings, that it had won a new contract from Italian oil and gas companyEni(E Quote) to carry out a range of well services in Italy. On the combined news, the stock shot up 3% in early trading during a larger sector rally. Nearing the market close, the stock was up 1% on the day.

Banker Hughes(BHI Quote), with which BJ Services has previously announced plans to merge, had gained 1.4% near the market close. Helmerich & Payne(HP Quote), which also reported weak earnings last week, was close to 4% in early trading, but was ending the day with a 2% gain. The energy sector as a whole was up 1.4% by late afternoon.