Core Lab reports 2003 revenues at an all-time high of $405 million – up 11% from 2002. President David Demshur commented, ‘Operations generated record levels of cash from operations and free cash flow. We used this cash to create shareholder value from stock repurchase and invested $23 million capex.’
Core reports that higher finding and development costs for natural gas on the shallow shelf of the Gulf of Mexico and crude oil in North America, have caused oil companies to increase spending on optimizing production and recovery factors.
Core is ‘disappointed’ in the performance of its loss-making reservoir management operations, especially specialized geophysical and seismic-related services. The company is evaluating options to improve the profitability and cash flow from these operations, including downsizing or selling the business. This will not have an effect on Core’s integrated, engineering-related projects and multidisciplinary reservoir studies which generated over $10 million revenue and $1.6 million profit in 2003.
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