10:51 DJS Ensco's Net Jumped 54%; National-Oilwell Earnings More than Doubl
10:51 DJS Ensco's Net Jumped 54%; National-Oilwell Earnings More than Doubled
NEW YORK -(Dow Jones)- Ensco International Inc. said Wednesday its
second-quarter net income jumped 54%, but the energy-services company warned
that results the rest of the year will suffer from low oil prices.
Meanwhile, National-Oilwell Inc., which makes oil and natural-gas
drilling equipment, said second-quarter earnings more than doubled from a year
earlier.
Ensco (ESV) posted net income of $80.6 million, or 57 cents a diluted
share, compared with year-ago net of $52.2 million, or 37 cents a share. The
results were about in line with estimates for earnings of 56 cents a share.
Revenue soared 20% to $234 million.
The Dallas-based company warned that earnings in the second half of the
year will be hurt by low oil prices.
Ensco is not alone in that situation as all oil-services companies have
been sensitive to changes in oil prices. The companies provide the drilling
rigs, drill bits, surveys and other support for the oil business, depend on
the capital spending of oil and natural-gas producers for their revenue. And
with oil prices languishing below previous expectations, their cash flow has
been hurt, and some have curtailed spending plans.
Shares of oil-related companies have been weak since October, when the
price of oil began falling from its then-level of $21 a barrel to below $12 a
barrel last month. Also, the Asian economic crisis, as well as warm winter
weather, have contributed to a glut of oil in global markets.
Houston-based National-Oilwell (NOI) had net of $23.8 million, or 46
cents a share on revenue of $294.8 million, up from $11 million, or 21 cents a
share on revenue of $234 million in last year's period.
That latest results were four cents a share better than the First Call
forecast.
The company said demand for offshore and land equipment is "strong" and
reported a backlog of $260 million as of June 30, compared with $84 million a
year ago.
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(:ESV) (:NOI)
07/15 10:51a CDT
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