Cameron Q2 Profit Declines

Cameron reported fully diluted earnings per share, excluding discontinued operations and other costs, of $0.83 for the second quarter of 2015, compared to $0.95 for the same period of 2014. 

Other costs in the second quarter of 2015 amounted to $37 million, or $0.12 per share.

On a GAAP basis, the Company’s fully diluted earnings per share for the second quarter and first six months of 2015 were $0.73 and $0.98, respectively, as compared to $1.08 and $1.57 for the same periods of 2014.

Commenting on the Company’s performance in the second quarter of 2015, Chairman and Chief Executive Officer Jack B. Moore, said, “The Company reported solid earnings and orders despite challenging market conditions. Our financial results reflected outstanding execution across the enterprise when compared to the year ago quarter, driven by our Subsea and Drilling segments and a 16% decline in our SG&A expense.”

Consolidated orders increased 15% on a sequential-quarter basis from the first to the second quarter of 2015, reflecting the breadth and competitive differentiation of Cameron’s portfolio of businesses. Specifically, the sequential-quarter gains occurred in three of the Company’s four reporting segments and amounted to 32% in Subsea, 23% in Drilling and 5% in Surface. Subsea processing technology continued to gain traction during the second quarter, with the segment recording a significant award for subsea boosting in the Gulf of Mexico.

The segment also recorded a $330 million award for subsea production equipment for a project offshore North Africa and, separately, a front-end engineering and design contract for a proposed floating LNG development offshore northwest Australia.

Cameron’s capital expenditures totaled $41 million in the second quarter of 2015, as compared to $73 million in the second quarter of 2014. As of the end of the second quarter of 2015, approximately $285 million remained available under the Company’s existing share purchase authorization.

Moore said, “Although the industry downturn continues to pose many challenges, we believe the pace of the decline in customer spending has begun to moderate. 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. We believe this focus will ensure that the company generates long-term value for our stakeholders.“