Cameron 1st Quarter Income Improves (USA)

Cameron reported net income of $134.0 million, or $0.54 per diluted share, for the quarter ended March 31, 2012, compared with net income of $109.5 million, or $0.43 per diluted share, for the first quarter of 2011.

Cameron reported net income of $134.0 million, or $0.54 per diluted share, for the quarter ended March 31, 2012, compared with net income of $109.5 million, or $0.43 per diluted share, for the first quarter of 2011. The first quarter 2011 results included after-tax charges of $7.0 million, or $0.03 per diluted share, primarily related to litigation costs associated with the Deepwater Horizon matter.

Revenues were $1.8 billion for the quarter, up 20 percent from $1.5 billion a year ago, and income before income taxes was $171.8 million up 23 percent from $139.9 million (including the $8.9 million pretax charge) a year ago. Cameron Chairman, President and Chief Executive Officer Jack B. Moore said that the year-over-year revenue increase was due to gains in Drilling & Production Systems (DPS) and Valves & Measurement (V&M).

Total orders were $2.6 billion, up from $1.5 billion in the first quarter of 2011 and $1.9 billion in the fourth quarter of 2011. This represented increases of nearly 70% and 35%, respectively. Moore noted that this was the second highest orders quarter in Cameron’s history and that all businesses reflected an increase from a year ago. A record was established for the surface systems business.

Orders for the quarter included a $340 million award from Petrobras for thirty pre-salt subsea trees with installation tools, spare parts and accessories to be manufactured outside Brazil. Moore said, “We are pleased to assist Petrobras with these fast track trees and look forward to supporting future subsea awards in our expanded Brazilian facilities.” He also noted that in the drilling systems business, a total of eight deepwater stacks as well as eight jackup awards were received during the quarter.

Cameron’s backlog at the end of the first quarter was $6.8 billion, up from the December 31, 2011 level of $6.0 billion and up from $4.9 billion a year ago. Moore noted that this is a record backlog level for the Company. “This represents sequential as well as year-over-year backlog increases for all of our major business segments”, he said. “It represents 38% growth from a year ago”.

Cameron’s operations utilized cash of $203.8 million during the first quarter of 2012 (which included $83 million of cash for the indemnity acquired from BP in the fourth quarter of 2011), compared with a cash use of $326.8 million a year ago. Moore said that the Company’s cash uses typically exceed cash inflows during the first quarter of the year, and that he expects Cameron to generate meaningful cash flow from operations for the full year. He also noted that capital spending is still expected to total approximately $500 million, up from $388 million in 2011, reflecting multiple opportunities for deployment of capital, including enhanced exposure to North American resource plays, expansion of Brazilian facilities and investment in drilling aftermarket support. The Company has also entered into a contract to acquire the drilling equipment business of TTS Group ASA for $270 million of cash, pending approval by the Norwegian Competition Authorities. Closing is expected in mid – 2012.

Moore said that Cameron’s second quarter earnings are expected to be in the range of $0.70 to $0.75 per share, and that the Company anticipates that full-year 2012 earnings are expected to be in the range of $3.20 to $3.30 per share.

Cameron is a leading provider of flow equipment products, systems and services to worldwide oil, gas and process industries.

[mappress]
Source: Cameron, April 26, 2012