Cameron: Drilling & Productions Systems Spur Revenue Growth
Cameron reported earnings per share for the third quarter of 2013 of $0.81, excluding charges. After-tax charges for the third quarter of 2013 were $8.6 million, primarily related to the integration of OneSubsea and certain other acquisitions.
The Company reported GAAP net income of $189.6 million for the quarter, or $0.78 per diluted share. This compares to GAAP net income of $223.6 million for the third quarter of 2012, or $0.90 per diluted share.
Year-over-year revenues increase
Revenues of $2.5 billion for the quarter were a record, up nearly 13 percent from $2.2 billion a year ago. Cameron Chairman and Chief Executive Officer Jack B. Moore said that the year-over-year revenue increases were due to double digit revenue gains in Drilling & Productions Systems (DPS). “Record revenues were established this quarter in each of our DPS businesses, OneSubsea, surface and drilling systems,” Moore said.
Year-over-year orders increase over 32 percent; backlog at record level
Total orders were $3.0 billion for the quarter, up from $2.3 billion in the third quarter of 2012, for an increase of over 32 percent. Year-to-date subsea bookings of $2.8 billion have eclipsed the previous record of $2.7 billion established for full-year 2008.
The quarter included the delivery of the first in a series of high specification, harsh environment jack-up drilling rigs to Prospector Offshore Drilling S.A. This represents the seventh jack-up drilling package delivered by the Company’s Sense operations.
Cameron’s backlog at the end of the third quarter was $11.2 billion, up from the beginning of the year level of $8.6 billion and up from $7.6 billion a year ago. This is a record backlog for the Company and represents almost 47 percent growth from prior year. Moore stated, “The Company is committed to continue to invest in the infrastructure required to meet our customers’ needs.”
OneSubsea receives subsea processing order
Subsequent to quarter end, OneSubsea received a letter of award for one of the largest dual pumping stations in its history from Total for its Moho Phase 1 bis. subsea project in the Congo, further demonstrating OneSubsea’s clear leadership in the subsea processing space. OneSubsea has sold eighty-five subsea pumping units over the past seventeen years. Moore noted that OneSubsea will make significant investments in R&D in 2014. “This will further advance a number of platforms like subsea processing that will allow us to achieve OneSubsea’s stated goal of maximizing reservoir recovery for its customers”, Moore said.
Capital investment and share repurchases continue
Year-to-date cash flow from operations was $206.5 million compared to $138.2 for the comparable period in 2012. Capital spending will approximate $500 million in 2013, reflecting multiple opportunities for deployment of capital, including enhanced exposure to North American resource plays and expansion of facilities and investment in the drilling and aftermarket services businesses.
The Company acquired 7.7 million of its shares during the third quarter. Total cash returned to shareholders through share repurchases totaled $558 million so far in 2013. Further, the Company’s board of directors approved an additional $1.0 billion share repurchase authorization at its October meeting.
Fourth quarter earnings guidance
The Company’s fourth quarter earnings are expected to be in the range of $0.95 to $1.00 per share, excluding charges.
Press Release, October 24, 2013