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Canada: ShawCor Releases Second Quarter 2011 Results

August 11, 2011

ShawCor Ltd. announces second quarter 2011 results:

  • Second quarter revenue of $265 million increased by 13% from the $235 million reported in the second quarter of 2010 but was 5% lower than the $279 million reported in the first quarter of 2011.
  • EBITDA in the second quarter of $35.3 million increased by 12% from $31.4 million in the second quarter of 2010 but was lower by 15% compared with the $41.4 million reported in the first quarter of 2011.
  •  Net income in the second quarter was $15.7 million (or $0.21 per share diluted) compared with $12.0 million (or $0.17 per share diluted) in the second quarter of the prior year and compared with $20.5 million (or $0.29 per share diluted) in the first quarter of 2011.

ShawCor’s second quarter financial results continued to reflect year over year improvement in revenue and operating income although at lower levels from the first quarter of this year as a result of lower project volumes in the EMAR and Asia Pacific regions. In the second half of 2011, a modest improvement is expected with project activity picking up in EMAR and a gradual improvement in market conditions in Mexico and Brazil.

“The Company currently has over $1.5 billion in outstanding firm project bids. These projects are moving toward final investment approval and the Company expects to begin to secure coating orders for some of these projects in the second half of 2011, with production starting in 2012. In light of the recent global economic uncertainty, the possibility for project delays exists. However, several of the largest projects  included in the outstanding bids involve the long-term supply of natural gas to emerging markets in Asia  and are thus expected to proceed,” said Bill Buckley, President and CEO of ShawCor Ltd.

Effective January 1, 2011, ShawCor Ltd. (the “Company”) began reporting its financial results in accordance with Internal Financial Reporting Standards (“IFRS”). Prior year comparative amounts have been changed to reflect results as if the Company had always prepared its financial results using IFRS.

Second Quarter 2011 versus Second Quarter 2010

Consolidated revenue increased by $30.0 million, or 13%, from $234.5 million during the second quarter of 2010 to $264.5 million during the second quarter of 2011, primarily due to an increase of $26.3 million in the Pipeline and Pipe Services segment.

Revenue for the Pipeline and Pipe Services segment was higher in the second quarter of 2011 than in the second quarter of 2010, mainly because of significant growth in North America, partially offset by lower revenue in EMAR, Latin America and Asia Pacific.

Second Quarter 2011 versus First Quarter 2011

Consolidated revenue decreased by $15.0 million, or 5%, from $279.5 million during the first quarter of 2011 to $264.5 million during the second quarter of 2011, mainly due to a decrease of $15.8 million in the Pipeline and Pipe Services segment, partially offset by an increase of $2.4 million in the Petrochemical and Industrial segment.

Revenue for the Pipeline and Pipe Services segment was $15.8 million lower in the second quarter of 2011 than in the first quarter of 2011, because of lower revenue in EMAR and Asia Pacific, which was partially offset by higher revenue in North America and Latin America. See section 3.3 – Segment Information for additional disclosure with respect to the change in revenue in the Pipeline and Pipe Services segment.

Revenue for the Petrochemical and Industrial segment increased $2.4 million in the second quarter of 2011 compared to the first quarter of 2011, primarily due to higher revenue in North America.

About ShawCor Ltd. :

ShawCor Ltd. is a growth-oriented, global energy services company that operates through seven business units which focus on technology-based products and services for the pipeline and pipe services market and the petrochemical and industrial market with manufacturing and service facilities located in over twenty countries around the world.

Commencing in 2000, ShawCor Ltd. entered its fourth decade as a public company, beginning as a speciality pipe coater in Ontario, Canada and growing into a diversified global energy services company.

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Source: ShawCor, August 11, 2011;  Image: showbox
Commencing in 2000, ShawCor Ltd. entered its fourth decade as a public company, beginning as a speciality pipe coater in Ontario, Canada and growing into a diversified global energy services company.