Cameron profit falls by one-third
http://fuelfix.com/blog/2015/07/23/cameron-profit-falls-by-one-third/#33445101=0
Oil service firm Cameron said Thursday a downturn in drilling ate into its second-quarter profits.
Houston-based Cameron, which provides equipment to offshore producers, reported a net income for the three months ending June 30 of $155 million, down from $233 million in the same period last year. Revenues fell to $2.2 billion from $2.5 billion.
In its earnings release, the company said that orders were on the rise from the first quarter of 2015.
“We believe the pace of the decline in customer spending has begun to moderate,” said Cameron CEO and Chairman Jack Moore.
But the company said it would remain on the defensive. Cameron reported a $13 million facility closing and severance charge on the quarter.
“In this environment, we remain focused on the things we can control: the ongoing systemic reduction in our cost structure, execution, customer relationships and technology advancement,” Moore said in a statement.
Cameron will host a conference call to discuss the quarters results at 8:30 a.m.
Hercules Offshore posts $88.3 million loss
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Hercules Offshore posted a $88.3 million loss in the second quarter amid a lingering crude slump that’s hammered the offshore oil services industry.
The Houston-based shallow-water driller Thursday reported a net loss in earnings of $88.3 million, or 55 cents per diluted share, during the three-month period ending June 30. That’s down from a $6.6 million profit, or 4 cents per diluted share, during the same period last year.
“Second quarter results reflect the weak operating operations across the offshore services sector as well as the impact of our resolution with Saudi Aramco for our three rigs in the Middle East,” CEO and President John T. Rynd said in a statement. “The latest pullback in the price of oil is likely to delay any improvement in worldwide activity levels well into 2016.”
The firm made “retroactive dayrate concessions” to Saudi Aramco on existing contracts on three rigs, resulting in a $13.4 million adjustment.
The company also saw a dramatic pullback in domestic offshore activity as it operated fewer rigs, for less time and less money than the same time a year ago. Its average revenue per rig per day day plunged to $92,538 from $108,237 in the second quarter of last year.
The tough environment spurred the Houston-based firm, which contracts jack-up rigs mostly in the shallow waters of the Gulf of Mexico, to restructure its finances earlier this year. The company reached an agreement with its debt holders to convert $1.2 billion in senior debt into new equity, giving them almost 97 perent of the company’s shares. Rynd said he expects the plan to get full approval in late October.
Offshore services companies have been particularly hard hit by the downturn in crude prices. Hercules slashed 40 percent of its 1,800 employees and cold-stacked 11 of its 20 Gulf rigs earlier this year, and Rynd said Thursday that the firm continues to “aggressively reduce costs.”
“By controlling costs and establishing a stronger balance sheet, we will be better positioned to weather the protracted downturn and possibly capitalize on opportunities that may arise in such industry conditions,” he wrote.