Cameron has reported net income of $187 million in the third quarter 2015, a decrease of approx. 17 per cent from the prior-year quarter net profit of $225 million.
The company’s fully diluted earnings per share for the third quarter and first nine months of 2015 were $0.97 and $1.96, respectively, as compared to $1.11 and $2.68 for the same periods of 2014. Market expectations were about $0.81 EPS.
President and Chief Executive Officer, Scott Rowe, said: “The Company’s earnings for the third quarter of 2015 were comparable to those of the third quarter of 2014, as a near-tripling of operating income in the Subsea Segment, a 20% reduction in consolidated SG&A and a lower tax rate were offset by reduced operating income in the company’s other three business segments. Revenues were down in all four segments relative to the year-ago quarter, reflecting weaker demand in the company’s served markets.”
For the Q3 2015, the Houston-based oil and gas flow equipment specialist recorded revenues of $2.20 billion ($758 million subsea revenues) compared to $2.67 billion ($779 million subsea revenues) for the year-ago quarter.
Backlog for the company was $7.23 billion, including Subsea backlog of $3.45 billion.
In Cameron’s outlook Rowe noted: “Although our operational improvements partially mitigated the third-quarter impact of the cyclical downturn, we have seen no easing of market pressures and – as a result – we expect operating income margins to decline sequentially in the fourth quarter in each of our four segments. In the face of market headwinds, we will maintain our relentless focus on the things we can control: execution, customer relationships, cost reduction and technology.”
Furthermore, in light of the pending transaction with Schlumberger, which is anticipated to close in the first quarter of 2016, Cameron said it is discontinuing its quarterly conference calls for the investment community. To remind, on August 26, 2015, Schlumberger and Cameron jointly announced a definitive merger agreement in which the companies will combine in a stock and cash transaction.