Forum Sees Profit Rise
- Business & Finance
Forum Energy Technologies has delivered third quarter 2014 revenue of $469 million compared to $390 million for the third quarter 2013.
Net income for the quarter was $52 million or $0.54 per diluted share compared to $33 million or $0.35 per diluted share for the prior year period.
Excluding $0.02 per share of non-operational items, adjusted diluted earnings per share were $0.52 in the third quarter of 2014.
Drilling & Subsea segment revenue in the third quarter 2014 was $307 million, an increase of $59 million, or 24%, from the third quarter 2013.
The improved results were primarily due to increased sales of drilling equipment and products driven by newbuild rig orders and the higher rig count in North America.
Revenue for downhole completion products was up 36% over the prior year period on greater completions service intensity.
Cris Gaut, Forum’s Chairman and Chief Executive Officer, remarked: “Forum had a strong third quarter. We had record revenue of $469 million, and record operating income, excluding non-operational items, of $78 million. We are also pleased with the continued sequential improvement of our margins. EBITDA for the quarter, excluding non-operational items, was $95 million, or 20.2% of revenue.
“Our Drilling & Subsea segment third quarter 2014 revenue increased $28 million, or 10%, sequentially primarily due to the strong demand for drilling capital equipment and downhole completion products. Operating income, excluding non-operational items, was $58 million, an increase of 15% sequentially.
“The Production & Infrastructure segment experienced a sequential increase in revenue of $12 million, or 8%, compared to the second quarter 2014 on increased sales of pressure pumping consumable products and valves. Operating income, excluding non-operational items, was $30 million, an increase of 11% sequentially.
“Orders continued to show strength in the third quarter at $489 million, 4% above our record revenue.
“Forum expects diluted earnings per share for the fourth quarter 2014 of $0.45 to $0.51, with fewer manufacturing days in the fourth quarter due to holidays.”