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Superior show for services company



By Knut Evensen 

Louisiana's Superior Energy Services has reported a 378% increase in its first-quarter net profit due to strong production-related activity for its well intervention services in the Gulf of Mexico.

Net profit for 2005 was $17.2 million, or $0.22 per share, up from the $3.6 million, or $0.05 per share, that it made in the same period the previous year.

EBIT for the quarter also increased from $5.7 million in 2004 to $27.3 million in 2005 while revenues increased by almost 50% to $173.2 million.

Superior boss Terry Hall said: "It is evident that the Gulf of Mexico market is at a much different point in the industry cycle when you compare this quarter's results from our well intervention, rental tool and marine segments to the first quarter results of last year.

"We believe activity in these core product and service segments should continue to improve as we enter the traditional busy season for Gulf of Mexico well intervention work and continue to grow our rental tools business."

The company has also ordered a new-build 880-ton derrick barge to support its operations on the outer continental shelf.

The $22 million barge will accommodate 200 people and is expected to be available in the Gulf of Mexico late in the third quarter of 2006.

The company intends to use the purpose-built derrick barge to remove platforms and structures owned by its subsidiary, SPN Resources, and compete in the Gulf of Mexico construction market for both installation and removal projects.


Friday, 29 April, 2005, 01:24 GMT  | last updated: Friday, 29 April, 2005, 02:52 GMT

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