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Boots & Coots fires up earnings



By Upstream staff 

Houston well response and services group Boots & Coots reported net income sharply up in 2006 as the company diversified its offerings and expanded geographically.

Boots & Coots reported net earnings of $11.8 million, or 21 cents per diluted share, compared with $1.9 million or six centes per diluted share in 2005 as it integrated its new workover and snubbing business.

Revenues rose to $97 million from $29.5 million previously.

Boots & Coots chief executive officer Jerry Winchester said the company's traditional well response work contributed just 22% to itsr evenue mix in 2006, compared with 50% in 2005.

The company also expanded its services in key markets Libya and Algeria.

For the fourth quarter, Boots & Coots saw net earnings rise to $4.5 milllion, or seven cents per diluted share, compared with net earnings of $1.2 million, or four cents per diluted share, in the same period in 2005. Revenues for the same period rose to $33.7 million from $5.9 million in the year-ago period.

However, the company warned that it expected revenues and earnings to fall in the first quarter of 2007 due to the delay of well intervention projects in the Gulf of Mexico and Venezuela. Work was expected to pick up from the second quarter of this year, it said.


Tuesday, 20 March, 2007, 23:59 GMT  | last updated: Wednesday, 21 March, 2007, 00:49 GMT

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