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Smith posts profit on strong land rig market
Smith International saw its profit soar in the 2003 third quarter, supported largely by a strong land rig market in the United States, Canada and Mexico, the big oilfield service company said Oct. 17.
The company said it had third-quarter net income of $35 million or 35 cents per share on revenues of $924.8 million, compared to net income of $29.9 million on revenues of $877.7 million in the previous quarter and $19.8 million on revenues of $777.2 million in last year's third quarter.
“Looking forward, we expect our business will continue to grow in non-U.S. markets,” said Doug Rock, Smith's chief executive officer. International markets currently account for two-thirds of Smith's revenues. One soft spot was Gulf of Mexico Rock said during a conference call that the “one soft spot” in the United States during the 2003 third quarter was the Gulf of Mexico. He said Smith customers were hampered by hurricanes and tropical storms, unusually strong ocean currents and mechanical problems with drilling risers.
“We don't believe these problems will recur in the fourth quarter,” Rock said. “And we expect to see better deepwater activity in the fourth quarter.”
Smith said that while most of the third-quarter increase came from the Western Hemisphere, activity improvements and new contract awards in the North Sea, the former Soviet Union and West Africa also contributed to earnings, as well as acquisitions made during the past year.
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