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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: SofaSpud who wrote (12796)	10/13/1998 8:28:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Tesco Corporation Reports First Half Results CALGARY, Oct. 13 /CNW/ - First Six Months Tesco Corporation reports that its unaudited net earnings for the six months ended August 31, 1998 were $4.9 million, compared to $12.0 million for the comparative period last year. Fully diluted earnings per share were $0.15 for the six months, compared to $0.40 for the first six months of fiscal 1998. << ------------------------------------------------------------------------- Millions of Cdn Dollars Six Months Ended Six Months Ended % (unless noted) August 31, 1998 August 31, 1997 Change ------------------------------------------------------------------------- Revenue $68.0 $70.2 -3% EBITDA $13.3 $24.0 -45% Net Earnings $4.9 $12.0 -59% Earnings per share - fully diluted ($/share) $0.15 $0.40 -62% Rental Service Days 7,526 8,774 -14% Top Drive Units Sold 12 10 +20% Capital Additions $25.1 $14.1 +78% Working Capital $78.1 $34.6 +127% Fully Diluted Shares Outstanding (millions) 34.6 31.3 +10% ------------------------------------------------------------------------- >> Second Quarter The Corporation further reports that its unaudited net earnings for the three months ended August 31, 1998 were $3.0 million, compared to earnings of $6.6 million for the same quarter last year. Fully diluted earnings per share were $0.09 for the quarter, compared to $0.22 for the second quarter of fiscal 1998. << ------------------------------------------------------------------------- Millions of Cdn Dollars Three Months Three Months % (unless noted) Ended August 31, Ended August 31, Change 1998 1997 ------------------------------------------------------------------------- Revenue $32.5 $38.6 -16% EBITDA $7.7 $13.2 -42% Net Earnings $3.0 $6.6 -54% Earnings per share - fully diluted ($/share) $0.09 $0.22 -59% Rental Service Days 3,598 4,843 -26% Top Drive Units Sold 4 5 -20% ------------------------------------------------------------------------- >> Lower second quarter results reflect the continuing slowdown in the oil and gas industry. World economic events are slowing industrial and consumer demand and depressing oil prices. Tesco's mandate is to succeed even in this environment and be positioned to fully exploit a future resurgence in the industry. To achieve that mandate the company is continuing to develop new technology and processes and to transform them into successful new businesses while at the same time ensuring that existing activities operate as efficiently as possible. Management is focusing substantial resources on all of these efforts. - While top drive demand is weak, Tesco Drilling Technology's manufacturing capability is being utilized in building a more diverse range of specialized Tesco developed products. - Tesco is moving rapidly to market its new integrated underbalanced drilling business, which has generated significant international attention. - Tesco's exciting Casing Drilling project has made excellent progress. We are pushing towards commercial application of this process and discussions are underway to forge business alliances for the future. - Tesco will continue to expand both the geographic and market penetration of the top drive in the coming months. The economic and operating appeal of top drives as a tool for increasing land drilling efficiency continues to be compelling. - Mainline Industries is continuing to shift its emphasis towards engineered solutions in hydraulics and motion control across a broader spectrum of industry. - Gris Gun has attained revenues close to last year's record amount through increased international sales.