DRIL-QUIP INC Releases Q2 2024 10-Q Report Highlighting Financial and Operational Performance
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DRIL-QUIP INC, a leading manufacturer of highly engineered offshore drilling and production equipment, has released its Form 10-Q report for the second quarter of 2024. The report provides a detailed overview of the company's financial performance and operational highlights, reflecting both challenges and growth opportunities in the current market environment.
Financial Highlights
- Total Revenues: $230.6 million, increased by $50.1 million or 27.8% compared to the same period in 2023, driven by the acquisition of Great North and growth in international offshore markets.
- Operating Income (Loss): $(23.5) million, a decrease from $6.8 million in the same period in 2023, primarily due to $19.4 million in expenses related to the planned merger with Innovex and a foreign currency transaction loss.
- Net Income (Loss): $(21.8) million, compared to a net income of $5.8 million for the same period in 2023, impacted by higher operating expenses and merger-related costs.
- Net Income (Loss) Per Common Share - Basic: $(0.63), compared to $0.17 for the same period in 2023, reflecting the net loss incurred during the period.
Business Highlights
- Revenue Segments: The company's operations are organized into three reportable business segments: Subsea Products, Subsea Services, and Well Construction. Subsea Products revenue decreased due to lower Connector and Surface Equipment orders. Subsea Services revenue increased due to customer-specific increases in international markets. Well Construction revenue saw a significant increase, primarily driven by the acquisition of Great North and growth in large bore liner hanger in international offshore markets.
- Geographical Performance: The company has substantial international operations, with approximately 73.0% of its revenues derived from foreign sales for the six months ended June 30, 2024. The majority of domestic revenue relates to operations in the U.S. Gulf of Mexico.
- Sales Units: The company accounted for 48 projects using over-time accounting for the three months ended June 30, 2024, representing approximately 20.5% of total revenues and 33.1% of product revenues.
- Future Outlook: The company expects continued pressure in both crude oil and natural gas prices, as well as in the level of drilling and production-related activities. The Mergers with Innovex are expected to close in the third quarter of 2024, with the combined company being named Innovex International, Inc.