TESOF - in case any body is interested. This was a company featured in a Doug Fant interview with Richard Spears. Most of Spears other picks have rocked. IMO this will at least hit the last cycle high of 21. JMVVHO
The Chart:
finance.yahoo.com
--------------------------------------------------------------------------------------------
Home Page:
tescocorp.com
--------------------------------------------------------------------------------------------
The constant big buyer:
biz.yahoo.com
--------------------------------------------------------------------------------------------
The SLB alliance:
Tesco and Schlumberger Form Strategic Alliance
CALGARY, Oct. 21 /CNW/ - Tesco Corporation (``Tesco') and Schlumberger
Oilfield Services (``Schlumberger') are pleased to announce that they have
entered into a worldwide Preferred Supplier and Alliance Agreement effective
October 15, 1999 whereby the companies will co-operate in the provision of
specialized Casing Drilling(TM) services.
It is intended that Casing Drilling(TM) solutions will be offered to the
oil and gas industry by utilizing the combined knowledge, know-how and
experience of Tesco and Schlumberger. This combination will provide operators
with the most complete and effective solutions for their drilling with casing
requirements.
Tesco's patented Casing Drilling(TM) system combines
retrievable/retractable Casing Drilling(TM) downhole assemblies and purpose
built tools which allow operators to simultaneously drill, case and evaluate
oil and gas wells.
Schlumberger provides an extensive range of drilling and production
services, as well as project management services. The companies have also
agreed, where appropriate, to work together in the continued improvement of
the technology.
Tesco is an international oilfield service company operating in over
twenty-five countries. Tesco manufactures and services highly efficient
oilfield equipment designed to reduce the cost of drilling and producing oil
and gas wells. Tesco is the world leader in rental of portable top drive
drilling systems for land rigs, and globally employs over 650 personnel.
Tesco's share are listed on the Toronto Stock Exchange under the symbol
``TEO' and on the NASDAQ under the symbol ``TESOF'.
Schlumberger Oilfield Services is the leading supplier of services to the
international petroleum industry. Schlumberger operates offices, service
locations, and research and development facilities around the world.
(``Casing Drilling' is a Trade Mark of Tesco Corporation.)
%SEDAR: 00002774E
Canada NewsWire
Give us your message. We'll give you the world.
--------------------------------------------------------------------------------
Latest Quarterly Report:
Attention Business/Financial Editors:
Tesco Corporation Reports Third Quarter Results
CALGARY, Jan. 10 /CNW/ -
Third Quarter
The Corporation is pleased to report that its unaudited net earnings for
the three months ended November 30, 1999 were $0.6 million, compared to a loss
of $2.3 million for the same quarter last year. Fully diluted earnings per
share were $0.02 for the quarter, compared to fully diluted loss per share of
$0.07 for the third quarter of fiscal 1999. The year-to-year gains in revenues
and earnings reflected the improved oil and gas industry environment, recent
increases in demand for Tesco's products and services and the effects of the
Corporation's cost cutting measures.
<<
Millions of Cdn Dollars (unless noted) Three Months Three Months
Ended November Ended November
30, 1999 30, 1998
Revenue $36.0 $31.1
EBITDA $5.5 $(0.5)
Net Earnings (Loss) $0.6 $(2.3)
Earnings (Loss) per share - fully diluted
($/share) $0.02 $(0.07)
>>
First Nine Months
Tesco Corporation reports that its unaudited loss for the nine months
ended November 30, 1999 was $5.9 million, compared to $2.7 million of net
earnings for the comparative period last year. Fully diluted loss per share
was $0.18 for the nine months, compared to fully diluted net earnings of $0.08
for the first nine months of fiscal 1999. The unfavorable year-to-year
comparisons for the first nine months of fiscal 2000 reflected lower demand
for oilfield services and products in the first six months of the fiscal year
due to depressed oil and natural gas prices. Other factors included increased
selling expenses associated with the Corporation's new product offerings,
higher research and development costs and in the second quarter change in net
financial expense due to unfavourable foreign exchange movements together with
interest expense arising from the issue of the Senior Unsecured Notes.
<<
Millions of Cdn Dollars (unless noted) Nine Months Nine Months
Ended November Ended November
30, 1999 30, 1998
Revenue $85.6 $99.1
EBITDA $3.8 $12.8
Net Earnings (Loss) $(5.9) $2.7
Earnings (Loss) per share - fully diluted
($/share) $(0.18) $0.08
Capital Additions $1.0 $37.7
Working Capital $104.7 $61.2
Fully Diluted Shares Outstanding (millions) 34.7 34.7
>>
Top Drive Operations
Top drive rental days in Q3 were 2,970 - up 16.6% from Q2 - which
represents the highest quarterly level since Q3 of FY99. At the date of this
announcement, 50 rental top drive systems were in operation, principally in
North America. The company expects top drive rental activity to increase in
other regions by mid 2000. The Company sold five top drive systems in Q3,
bringing the total for the first nine months to 8.5 systems.
Underbalanced Drilling
After a slow 1999 fall season, the Company has the majority of its
underbalanced drilling systems contracted for the winter drilling season in
Canada and, pursuant to its joint operating agreement with Schlumberger, a
second UBD system will shortly be deployed with Schlumberger's second coil
tubing drilling system.
Casing Drilling
Ten field trial wells have now been completed. The data that has been
collected and the information gathered from these wells are now being
incorporated into new tool designs. We anticipate it will take several more
months before the new tools have been manufactured and field trials continue.
Change of Year End
As previously reported, the Corporation has changed its fiscal year end
to December 31st from February 28th. Accordingly, the Corporation's next
financial report will be audited financial statements for the ten months ended
December 31, 1999. Subsequent financial reports will be issued for quarters
commencing January 1, 2000.
Conference Call
Tesco Corporation will update investors on our Q3 Results on Monday,
January 10, 2000. To discuss this information, a conference call has been set
for:
Wednesday, January 12, 2000 at
9:00 a.m. (M.S.T.)
11:00 a.m. (E.S.T.)
If you wish to participate in the conference call, please call
1-888-209-3771 just prior to the start of the call.
A presentation will be made by Robert M. Tessari, President and C.E.O. of
Tesco Corporation. Martin Hall, Senior Vice President of Finance and Mark W.
Fischer, Chief Operating Officer will also be in attendance. Following the
presentation there will be a short question and answer period.
The conference call and all questions and answers will be recorded and
made available for review until January 19, 2000. To listen to the recording
call 1 (416) 626-4100 and ask for reservation No. 14113562.
<<
CONSOLIDATED STATEMENTS OF
EARNINGS
Tesco Corporation
Three and Nine months ended November 30, 1999 and 1998
(Thousands of Canadian Dollars)
Unaudited Three months Nine months
1999 1998 1999 1998
-------------------------------------------------------------------------
REVENUES $ $ $ $
-------------------------------------------------------------------------
Sales 35,984 31,062 85,584 99,101
Cost of sales 26,504 22,055 60,093 65,571
------- ------- ------- -------
Gross profit 9,480 9,007 25,491 33,530
------- ------- ------- -------
EXPENSES
-------------------------------------------------------------------------
Depreciation and amortization 3,178 2,912 9,632 7,733
General and administration 2,601 5,377 11,485 14,182
Selling 724 2,507 5,902 7,160
Research and development 1,268 775 5,301 2,353
Financial (income) expense 733 1,233 2,783 (2,408)
------- ------- ------- -------
8,504 12,804 35,103 29,020
------- ------- ------- -------
Earnings (loss) before income taxes 976 (3,797) (9,612) 4,510
Income taxes (recovery) 400 (1,538) (3,716) 1,826
------- ------- ------- -------
Net earnings (loss) for the period 576 (2,259) (5,896) 2,684
------- ------- ------- -------
------- ------- ------- -------
Earnings (loss) per share
- basic $0.02 ($0.07) ($0.18) $0.08
- fully-diluted $0.02 ($0.07) ($0.18) $0.08
CONSOLIDATED BALANCE SHEETS
Tesco Corporation
At November 30, 1999 and 1998
(Thousands of Canadian Dollars)
Unaudited
1999 1998
-------------------------------------------------------------------------
$ $
-------------------------------------------------------------------------
Current assets
Cash and short term deposits 51,125 6,231
Accounts receivable 35,466 27,956
Income taxes recoverable 5,262 10,601
Inventories 29,074 45,144
-------- --------
120,927 89,932
-------- --------
Capital assets 123,498 129,520
Goodwill and other assets 22,034 7,781
-------- --------
266,459 227,233
-------- --------
-------- --------
LIABILITIES
-------------------------------------------------------------------------
Current liabilities
Operating loan - 13,296
Accounts payable and accrued liabilities 16,190 15,475
-------- --------
16,190 28,771
Long term debt 69,572 4,983
Deferred income taxes 6,672 9,137
-------- --------
92,434 42,891
-------- --------
SHAREHOLDERS' EQUITY
-------------------------------------------------------------------------
Share capital 127,678 126,786
Retained earnings 46,347 57,556
-------- --------
174,025 184,342
-------- --------
266,459 227,233
-------- --------
-------- --------
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Tesco Corporation
Three and Nine months ended November 30, 1999 and 1998
(Thousands of Canadian Dollars)
Unaudited Three months Nine months
1999 1998 1999 1998
-------------------------------------------------------------------------
$ $ $ $
-------------------------------------------------------------------------
Cash provided by (used in)
operating activities
Net earnings for the period 576 (2,259) (5,896) 2,684
Adjusted for items not involving funds:
Depreciation and amortization 3,178 2,912 9,632 7,733
Amortization of financial items (68) - (93) -
Deferred income taxes 401 (392) 1,789 365
------- ------- ------- ------
4,087 261 5,432 10,782
Changes in non-cash working
capital balances 3,501 8,559 2,243 (11,887)
------- ------- ------- ------
7,588 8,820 7,675 (1,105)
------- ------- ------- ------
Cash provided by (used in)
investing activities
Proceeds from (expenditures on)
capital assets 887 (12,671) (1,047) (37,742)
Other assets - (4,500) (3,060) (4,236)
------- ------- ------- ------
887 (17,171) (4,107) (41,978)
------- ------- ------- ------
Cash provided by (used in) financing activities
Proceeds from (repayment of)
long term debt - (17) 463 2,856
Proceeds from issue of share capital - - - 4,983
------- ------- ------- ------
0 (17) 463 7,839
------- ------- ------- ------
Increase (decrease) in cash position
during the period 8,475 (8,368) 4,031 (35,244)
Net cash position
- beginning of period 42,650 1,303 47,094 28,179
------- ------- ------- ------
Net cash position
- end of period 51,125 (7,065) 51,125 (7,065)
------- ------- ------- ------
------- ------- ------- ------
Comprised of:
Cash and short term deposits 51,125 6,231 51,125 6,231
Operating loan - (13,296) - (13,296)
------- ------- ------- ------
51,125 (7,065) 51,125 (7,065)
------- ------- ------- ------
------- ------- ------- ------
SEGMENT INFORMATION
Three months ended: November 30, 1999
($'000)
Operations: Revenues Depreciation Earnings
--------------------- and before taxes
Internal Third party amortization
------------- ------------
Drilling services 2,185 25,814 2,597 1,242
Completions 173 5,218 413 1,545
Industrial 1,742 4,952 195 419
--------------------- ---------- ----------
4,100 35,984 3,205 3,206
---------------------
---------------------
Intersegment
eliminations (45) 152
Corporate items 18 (2,382)
---------- ----------
3,178 976
---------- ----------
---------- ----------
Geographic:
Revenues
--------
Canada 19,270
United States 8,755
Latin America 5,162
Other countries 2,797
--------
35,984
--------
--------
Nine months ended: November 30, 1999
($'000)
Operations: Revenues Depreciation Earnings
--------------------- and before taxes
Internal Third party amortization
------------ -------------
Drilling services 7,399 64,064 8,283 (4,744)
Completions 392 11,005 874 1,478
Industrial 2,850 10,515 558 (282)
--------------------- ---------- ----------
10,641 85,584 9,715 (3,548)
---------------------
---------------------
Intersegment
eliminations (135) 559
Corporate items 52 (6,623)
---------- ----------
9,632 (9,612)
---------- ----------
---------- ----------
Geographic:
Revenues
--------
Canada 40,485
United States 18,624
Latin America 18,534
Other countries 7,941
--------
85,584
--------
--------
SEGMENT INFORMATION
Three months ended: November 30, 1998
($'000)
Operations: Revenues Depreciation Earnings
--------------------- and before taxes
Internal Third party amortization
------------- ------------
Drilling services 132 22,595 2,571 (953)
Completions 106 3,353 232 (3)
Industrial 6,135 5,114 191 (287)
--------------------- ---------- ----------
6,373 31,062 2,994 (1,243)
---------------------
---------------------
Intersegment
eliminations (84) (21)
Corporate items 2 (2,533)
---------- ----------
2,912 (3,797)
---------- ----------
---------- ----------
Geographic:
Revenues
--------
Canada 9,313
United States 8,751
Latin America 9,605
Other countries 3,393
--------
31,062
--------
--------
Nine months ended: November 30, 1998
($'000)
Operations: Revenues Depreciation Earnings
--------------------- and before taxes
Internal Third party amortization
------------- ------------
Drilling services 366 75,703 6,664 4,833
Completions 296 10,406 590 822
Industrial 23,568 12,992 567 16
--------------------- ---------- ----------
24,230 99,101 7,821 5,671
---------------------
---------------------
Intersegment
eliminations (126) 21
Corporate items 38 (1,182)
---------- ----------
7,733 4,510
---------- ----------
---------- ----------
Geographic:
Revenues
--------
Canada 37,480
United States 25,603
Latin America 26,464
Other countries 9,554
--------
99,101
--------
--------
>>
%SEDAR: 00002774E
-30-
For further information: R.M. Tessari or Martin Hall, Tesco Corporation,
(403) 233-0757
TESCO CORPORATION has 24 releases in this database.
--------------------------------------------------------------------------------
General Inquiries - cnw@newswire.ca
Technical Issues - webmaster@newswire.ca
¸ 1999 Canada NewsWire, all rights reserved |
