Varco Announces Second Quarter Results
ORANGE, Calif., July 21 /PRNewswire/ -- Varco, International, Inc. (NYSE: VRC - news) today announced results of
operations for the second quarter and six months ended June 30. Net Income for the quarter was $19.7 million, $.30 per
share, on Revenues of $197.2 million. For the second quarter of 1997, Net Income was $10.8 million, $.17 per share, and
Revenues totaled $129.6 million.
For the first six months of 1998, Net Income was $34.7 million, $.53 per share, as compared to $18.2 million, $.28 per share,
during the comparable period of 1997. Revenues for the most recent six months were $347.4 million, versus $230.7 million for
the same period a year ago.
Incoming orders totaled $193.6 million for the second quarter, above the $172.7 million for the second quarter of 1997, but
significantly below the record level of $286.5 million for the first quarter of 1998. Backlog at June 30 was $596.3 million.
Set forth below are Revenues and orders for each of the Company's operating divisions for the quarters ended June 30, 1998
and 1997.
Revenues Orders
1998 1997 1998 1997
(In thousands)
Drilling Systems $70,310 $38,569 $43,672 $52,533
Varco BJ Oil Tools 23,906 15,584 26,432 23,472
M/D Totco 23,237 22,434 37,271 25,431
Shaffer 71,750 51,268 83,467 65,515
Rigtech 7,771 1,697 2,773 5,723
196,974 129,552 193,615 172,674
In discussing these results, Varco's Chairman and Chief Executive Officer George Boyadjieff said, ''Revenues and Net
Income reached record levels during the second quarter, as we benefited from the investments in capacity expansion we have
made over the past eighteen months. Despite the weak oil prices which have prevailed since last fall, the offshore market
continues to be a positive influence on our business. Although day rates have softened in recent weeks, offshore rig utilization
averaged approximately 94 percent during the quarter. In addition, our order bookings continued to reflect commitments to
add to the deepwater rig fleet, although the level of new rig announcements slowed from that of recent quarters.
''While the lower oil prices have created uncertainty as to the level of drilling activity in the coming months, our backlog and
equipment delivery commitments dictate that our greatest challenge over the next few quarters will be to deliver and support
the equipment to be installed on the new offshore rigs that will begin drilling over that period of time. Meanwhile, we will be
prepared to respond to the market conditions that we encounter,'' Boyadjieff conclu |
