Cameron 4Q profit plunges
Cameron, a provider of flow equipment products, systems and services to oil and gas industry, posted a lower profit for the fourth quarter of 2015 when compared to the same period last year.
Cameron is soon to be acquired by the world’s largest oilfield services provider Schlumberger as the merger agreement, announced in August 2015, is expected to close in the first quarter of 2016.
The company reported a net income attributable to its stockholders of $125 million in the 4Q 2015, compared to $254 million in the same period last year.
Furthermore, Cameron’s revenues for the 4Q 2015 fell to $2.08 billion from $2.8 billion in the same period last year.
Commenting on the company’s performance in the fourth quarter of 2015, President and Chief Executive Officer Scott Rowe, said: “The Company’s performance was driven by accelerated progress in the transformation of our cost structure and strong execution. In particular, the company’s Subsea segment reported an operating income margin of 23.1%, more than double that of the fourth quarter of 2014.”
Relative to the fourth quarter of 2014, the subsea segment reported an 85% increase in operating income despite lower revenues that dropped from $872 million in 4Q 2014 to $706 million in 4Q 2015.
Segment orders increased 27% versus the fourth quarter of 2014 and more than doubled as compared to the third quarter of 2015. Orders for the year dropped and totalled $2.23 billion versus $2.36 billion in 2014.
Looking ahead, Rowe said: “Although declines in energy prices will have a negative impact on our business in 2016, we remain focused on the factors that will drive our fundamental long-term performance: execution, customer relationships, cost reduction and technology.”
Offshore Energy Today Staff