Superior Energy Services, Inc. Announces Second Quarter 2003 Results
HARVEY, La.--(BUSINESS WIRE)--Aug. 5, 2003--Superior Energy Services, Inc. (NYSE: SPN) today announced results for the second quarter ended June 30, 2003. For the quarter, revenues were $128.9 million resulting in net income of $8.3 million or $0.11 diluted earnings per share, as compared to revenues of $112.7 million and net income of $8.5 million or $0.11 diluted earnings per share for the second quarter of 2002.
For the six months ended June 30, 2003, revenues were $252.1 million and net income was $15.8 million or $0.21 diluted earnings per share, as compared to revenues of $217.6 million and net income of $14.3 million or $0.20 diluted earnings per share for the six months ended June 30, 2002.
President and CEO Terry Hall Comments
President and CEO Terry Hall commented, "The rental tools segment continues to be a strong growth business, establishing a quarterly record in revenue and operating income as activity increased in certain international markets, and domestically in Texas and the deepwater Gulf of Mexico. We anticipate rentals internationally will continue to grow during the second half of the year. Activity increased for most of our well intervention services during the quarter, continuing a trend that started midway through the first quarter. Liftboat utilization overall did not improve as compared to the first quarter, which is attributable to lower demand in some of our mid-sized classes."
Well Intervention Group Segment
Second quarter revenues for the Well Intervention Group were $46.4 million, a 16% increase from the second quarter of 2002 and a 12% increase from the first quarter of 2003. On a sequential basis, activity increased for most production-related services, led by sharp increases in hydraulic workover and plug and abandonment services, including the completion of the Company's first subsea well intervention project. These were offset by lower well control activity.
Rental Tools Segment
Revenues for the Rental Tools segment were a record $36.4 million, 24% higher than the second quarter of 2002 and 5% higher than the first quarter of 2003. Rentals of drill pipe, on-site accommodations and handling tools and accessories to customers in Texas and the deepwater Gulf of Mexico were the key drivers to revenue growth during the period. In addition, rentals of on-site accommodations increased in Trinidad and rentals of drill pipe increased in Trinidad and Canada.
Marine Segment
Superior's marine revenues were $18.5 million, a 4% increase as compared to the second quarter of 2002 and a 1% decrease as compared to the first quarter of 2003. Average fleet utilization was 66% as compared to 67% for the first quarter of 2002 and 72% for the second quarter of 2002.
Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended June 30, 2003
($ actual)
Class Liftboats Average Dayrate Utilization
-------------- --------------- --------------------- -----------------
105' 8 $ 2,876 59.6%
120-135' 9 3,440 82.8%
145-155' 11 5,767 61.0%
160'-175' 6 7,944 45.1%
200' 3 10,218 89.7%
230'-245' 3 13,797 67.5%
250' 2 19,888 59.3%
Other Oilfield Services Segment
Revenues in this segment were $27.6 million, an 8% increase as compared to the second quarter of 2002 and a 3% decrease as compared to the first quarter of 2003. Decreases in non-hazardous oilfield waste treatment and sales of oil spill response equipment were partially offset by seasonal increases in construction and fabrication projects.
The Company will host a conference call at 10 a.m. Central Time today. The call can be accessed from Superior's website at www.superiorenergy.com, or by telephone at 800-763-5557. The replay telephone number is 800-642-1687 and the replay passcode is 1747566. The replay is available beginning two hours after the call and ending August 12, 2003.
Superior Energy Services, Inc. provides a broad range of specialized oilfield services and equipment primarily to major and independent oil and gas companies engaged in the exploration, production and development of oil and natural gas properties offshore in the Gulf of Mexico and throughout the Gulf Coast region. These services and equipment include the rental of liftboats, rental of specialized oilfield equipment, electric and mechanical wireline services, well plug and abandonment services, well control, coiled tubing services and engineering services. Additional services provided include contract operating and supplemental labor, offshore construction and maintenance services, offshore and dockside environmental cleaning services, the manufacture and sale of drilling instrumentation and the manufacture and sale of oil spill containment equipment.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which involve known and unknown risks, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: volatility of the oil and gas industry, including the level of exploration, production and development activity; risks associated with the Company's rapid growth; changes in competitive factors and other material factors that are described from time to time in the Company's filings with the Securities and Exchange Commission. Actual events, circumstances, effects and results may be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Consequently, the forward-looking statements contained herein should not be regarded as representations by Superior or any other person that the projected outcomes can or will be achieved.
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Three and Six Months Ended June 30, 2003 and 2002
(in thousands, except earnings per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2003 2002 2003 2002
-------- -------- -------- --------
Revenues $128,857 $112,730 $252,052 $217,556
-------- -------- -------- --------
Costs and expenses:
Cost of services 74,291 62,140 144,448 121,378
Depreciation and
amortization 12,072 10,456 23,827 19,978
General and administrative 23,689 21,426 47,378 42,639
-------- -------- -------- --------
Total costs and expenses 110,052 94,022 215,653 183,995
-------- -------- -------- --------
Income from operations 18,805 18,708 36,399 33,561
Other income (expense):
Interest expense, net (5,567) (5,181) (11,082) (10,405)
Equity in income of
affiliates 305 145 432 145
-------- -------- -------- --------
Income before income taxes 13,543 13,672 25,749 23,301
Income taxes 5,215 5,167 9,914 8,971
-------- -------- -------- --------
Net income $ 8,328 $ 8,505 $ 15,835 $ 14,330
======== ======== ======== ========
Basic earnings per share $ 0.11 $ 0.12 $ 0.21 $ 0.20
======== ======== ======== ========
Diluted earnings per share $ 0.11 $ 0.11 $ 0.21 $ 0.20
======== ======== ======== ========
Weighted average common shares
used in computing earnings
per share:
Basic 73,936 73,737 73,882 72,030
======== ======== ======== ========
Diluted 75,124 74,970 74,842 73,142
======== ======== ======== ========
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2003 AND DECEMBER 31, 2002
(in thousands)
6/30/2003 12/31/2002
(Unaudited) (Audited)
----------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 11,992 $ 3,480
Accounts receivable - net 113,874 108,352
Income taxes receivable - 6,087
Prepaid insurance and other 14,571 11,663
---------- -----------
Total current assets 140,437 129,582
Property, plant and equipment - net 415,874 418,047
Goodwill - net 168,526 160,366
Investments in affiliates 12,775 12,343
Other assets - net 6,591 7,282
---------- -----------
Total assets $ 744,203 $ 727,620
========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 16,178 $ 21,010
Accrued expenses 44,275 33,871
Income taxes payable 1,046 -
Current maturities of long-term debt 13,727 13,730
---------- -----------
Total current liabilities 75,226 68,611
---------- -----------
Deferred income taxes 75,825 67,333
Long-term debt 240,269 256,334
Total stockholders' equity 352,883 335,342
---------- -----------
Total liabilities and stockholders'
equity $ 744,203 $ 727,620
========== ===========
Superior Energy Services, Inc. and Subsidiaries
Segment Highlights
Three months ended June 30, 2003 and 2002, and March 31, 2003
(Unaudited)
(in thousands)
Revenue June 2003 June 2002 March 2003
----------- ----------- -----------
Well Intervention Group $ 46,416 $ 40,186 $ 41,399
Marine 18,487 17,760 18,665
Rental Tools 36,396 29,310 34,600
Other Oilfield Services 27,558 25,474 28,531
---------- ---------- ----------
Total $ 128,857 $ 112,730 $ 123,195
Gross Profit
Well Intervention Group $ 18,087 $ 17,904 $ 16,645
Marine 5,820 6,799 5,998
Rental Tools 25,014 20,110 23,486
Other Oilfield Services 5,645 5,777 6,909
---------- ---------- ----------
Total $ 54,566 $ 50,590 $ 53,038
CONTACT:
Superior Energy Services Inc., Harvey
Terence Hall/Robert Taylor/Greg Rosenstein, 504-362-4321
www.superiorenergy.com
SOURCE: Superior Energy Services, Inc.
