Superior Energy Services will exit Venezuela and phase out some subsea and some decommissioning work after posting a hefty loss on Tuesday ridden with one-time charges.
The US service provider booked a write-down of $419.4 million covering the Venezuela segment as well as impairments in its subsea and technical solutions business.
Superior reported a net loss of $313.5 million in the three months to December, compared with a profit of $76.2 million in the year-ago quarter.
The company had said in November that the government in the increasingly tumultuous Latin American country had expropriated two snubbing rig units belonging to a Superior affiliate.
Work had been stopped because Venezuela state oil company PDVSA was late on payments, according to reports.
As of then. Superior said the net value of the seized goods was less than $1 million and while PDVSA owed back fees of $9 million. The market had only generated $10 million for Superior over the first nine months of 2013.
Superior had previously said it was trying to negotiate the rigs' return, but the quarterly earnings report out Tuesday called the country a "non-core market."
The company also said it was amid a rethink of several of its US and Asia service segments including subsea construction and platform decommissioning.
"We've pursued a subsea well intervention strategy for several years, which has included participation in the subsea construction business," chief executive Dave Dunlap said in a statement.
"To date, we have not advanced the strategy as expected and have decided to seek strategic alternatives with our subsea construction business."
Structural decommissioning in the Gulf of Mexico had produced good results for roughly a decade but "is now saturated with competitors and has not produced positive results in recent years. In addition, the international market has not developed as anticipated.
"The company retains the specialized expertise to manage a large downed structure project, but will discontinue participating in the routine end-of-life decommissioning business."
Superior will keep plugging and abandoning wells, long a core business area for the company, it said.
Quarterly revenues faltered as well, dropping to $1.13 billion in the 2013 quarter from $1.17 billion in the year-ago period.
The company reported an annual loss of $111.4 million compared with 2012 profits of $365.9 million.
Venezuela has seen a wave of protests against Hugo Chavez successor Nicolas Maduro gain momentum amid economic instability, poor security and consumer-goods shortages.
In a release confirming the seizure, Superior said it was the sole live snubbing service provider to PDVSA, with a presence in the country for over 15 years.