Forum Energy Technologies, Inc. reported third quarter 2012 revenue of $348 million, up 5% over third quarter 2011 revenue of $331 million. Net income for the third quarter 2012 was $41 million, a 15% increase compared to third quarter 2011 net income of $36 million. Diluted earnings per share for the quarter were $0.44, compared to third quarter 2011 diluted earnings of $0.48 per share. Third quarter 2012 diluted earnings per share includes the impact of the 16.6 million shares issued in connection with the IPO in April 2012.
Drilling & Subsea
Drilling & Subsea revenue in the third quarter 2012 was $204 million, an increase of $6 million, or 3%, from the third quarter 2011. The Drilling Technologies product line revenue grew 3% over the third quarter 2011 on higher sales of pipe handling equipment despite a decrease in the North America rig count. The Subsea Technologies product line revenue decreased 6% in the third quarter 2012 over third quarter 2011 on delayed orders for the PerryTM work class remotely operated vehicles (ROVs).
Production & Infrastructure
Production & Infrastructure revenue in the third quarter 2012 was $144 million, an increase of $11 million, or 8%, from the third quarter 2011. Forum’s Production Equipment product line generated record revenue in the third quarter 2012, an increase of more than 25% over the third quarter 2011, on strong demand for production and processing systems and an expanded customer base. The Valve Solutions product line revenue also increased significantly from the prior-year quarter on strong market activity in the midstream transmission and petrochemical industries.
Review and Outlook
Cris Gaut, Chairman and Chief Executive Officer of Forum, remarked, “Forum continued our pattern of revenue growth. Demonstrating the benefits of our balanced portfolio, the Production Equipment and Valve Solutions product lines delivered good results, which helped offset the impact of a declining North America rig count on some of our other product offerings.
“Forum is performing well. Our Drilling and Flow Equipment product lines are facing demand softness as many E&P operators have exhausted their 2012 budgets and our pressure pumping customers continue to work through excess inventories of consumable parts. The outlook for our Subsea Technologies product line remains robust and we are now beginning to receive the vehicle orders for delivery over the next two years that we have been anticipating.
“We are pleased to welcome the employees of Syntech Technology, Inc. and Wireline Solutions, LLC, our two most recent acquisitions, to Forum.”
Forum provides diluted earnings per share guidance for full year 2012 of $1.83 to $1.88.
Significant Recent Events
- The acquisition of Syntech Technology, Inc., a manufacturer of syntactic foam buoyancy materials used for remotely operated vehicles (ROVs) and other deepwater flotation applications
- The acquisition of Wireline Solutions, LLC, a manufacturer of downhole completion tools and products, including composite hydraulic fracturing / bridge plugs
- A contract with Global Marine to supply a PerryTM XT 600 Trenching System complete with Launch and Recovery System and special tooling
- An award for four PerryTM XLX ROV Systems
- The sale of two Sub-AtlanticTM ROVs to IKM Subsea
- The ground breaking of a new 150,000-square-foot manufacturing facility in Louisiana to produce onshore and offshore drilling equipment for global customers
- Production Equipment product line was awarded several large projects, including one order for 89 gas production systems for a major North American producer to support their Marcellus operations
Forum Energy Technologies, Inc., headquartered in Houston, TX, is a global provider of manufactured technologies and applied products to the energy industry. FET’s over 3,200 employees provide the products and technologies essential to solving the increasingly complex challenges of the energy industry.
Press Release, October 30, 2012