Dril-Quip boosts profit in first quarter

Dril-Quip, Inc., an oilfield services company headquartered in Houston, has increased its profit for Q1 2015.

The company reported a net income of $53.7 million, or $1.38 per diluted share, for the three months ended March 31, 2015, versus net income of $42.6 million, or $1.04 per diluted share, for the first quarter of 2014.

Total revenues were $226 million during the quarter ended March 31, 2015 compared to $204.1 million for the same period in 2014. In addition, the first quarter 2015 results were favorably impacted by an after-tax foreign exchange gain of $4.8 million, or $0.12 per diluted share, as compared to an after-tax foreign exchange loss of $660,000, or $0.02 per diluted share, during the first quarter of 2014.

The company’s backlog at March 31, 2015 was approximately $1.1 billion, compared to its March 31, 2014 backlog of approximately $1.3 billion and its December 31, 2014 backlog of approximately $1.2 billion.

Blake DeBerry, Dril-Quip’s President and CEO, stated, “We are pleased with our first quarter 2015 results as both revenue and gross margins exceeded our expectations in the face of difficult industry conditions. As anticipated, new product orders were soft during the quarter but we expect bookings to strengthen as the year progresses. Additionally, we believe that our strong balance sheet and free cash flow during 2015 will allow us to enhance shareholder value through both stock repurchases and potential M&A activity, should attractive opportunities arise.”

Outlook

Based upon current market conditions, the company expects its earnings per diluted share for the second quarter of 2015 to approximate $1.15 to $1.25 and its earnings per diluted share for the full year to approximate $4.60 to $4.80, excluding any unusual items and foreign currency gains and losses.