Varco Announces First Quarter Results
PR Newswire - April 16, 1998 16:46
VRC %OIL %ERN V%PRN P%PRN
ORANGE, Calif., April 16 /PRNewswire/ -- Varco International, Inc.
(NYSE: VRC) announced today that Net Income for the first quarter ended
March 31 more than doubled from the comparable year-ago period, to $15.0
million, $.23 per share (diluted), from $7.4 million, $.11 per share
(diluted), last year. Revenues totaled $150.2 million in the most recent
quarter, 49 per cent above the $101.1 million in the year-ago period.
Incoming orders were also up sharply from the year-ago quarter, totaling
$286.5 million versus $140.3 million for the first three months of 1997.
The year-to-year increase in both orders and Revenues is reflected across
each of the Company's business units, and is attributable to the strength of
the offshore drilling market in general, and a continued emphasis on deep
water drilling in particular. With utilization of the existing offshore fig
fleet near 100 per cent, new rigs are in the process of being built,
principally deep water rigs. Each new rig creates significant Revenue
potential for Varco.
A continued increase in the number of new rigs committed, coupled with
limitations on Varco's manufacturing capacity, which is currently estimated at
approximately $650-$700 million in annualized Revenue, have caused order
bookings to exceed Revenues for each of the past seven quarters. Backlog at
March 31, 1998 totaled $599.7 million, not including non-binding letters of
intent totaling $51.4 million, against which the Company has received
$5.9 million in cash deposits. Backlog at March 31, 1997 was $226.2 million.
Set forth below are Revenues and orders for each of the Company's
operating divisions for the quarters ended March 31, 1998 and 1997.
Revenues Orders
1998 1997 1998 1997
(in thousands)
Drilling Systems $53,496 $26,528 $134,730 $39,751
Varco BJ Oil Tools 20,018 12,347 31,276 23,503
M/D Totco 23,609 16,565 31,951 20,778
Shaffer 47,212 43,117 80,531 54,178
Rigtech 5,408 2,427 8,038 2,137
149,743 100,984 286,526 140,347
In discussing the first quarter results, Varco's Chief Executive Officer
George Boyadjieff said, "The offshore market remains strong and our customers
are continuing to invest in upgrading their existing rigs as well as building
new rigs. As a result, we continue to experience rapid growth in orders and
revenues, and improved financial results. Despite the oil price weakness
which began late last year, this segment of the market has not demonstrated
significant signs of slowing."
QUARTER ENDED MARCH 31 1998 1997
(in $000's except per Share)
Revenues $150,191 $101,071
Income Before Income Taxes 22,760 11,506
Net Income 14,985 7,384
Basic Income Per Share .23 .12
Shares Used to Calculate
Per Share Amounts 64,240 63,253
Diluted Income Per Share .23 .11
Shares Used to Calculate
Per Share Amounts 65,662 64,770
Varco International, Inc. is a leader in the design and manufacture of
drilling equipment and machinery and rig instrumentation for oil and gas well
drilling worldwide.
SOURCE Varco International, Inc.
/CONTACT: Dirk Kertson, Chief Financial Officer of Varco International,
Inc., 714-456-1248, investor-relations@ora.varco.com
/Web site: varco.com
|
