First quarter service sector results mixed

Underwhelming service sector results contrast oils’ financial health, mirroring a long-term trend.

Halliburton’s Energy Services Group posted first quarter 2004 revenues of $1.8 billion, a $205 million increase over the first quarter 2003. Operating income of $214 million was also up $34 million. Landmark and Other Energy Services first quarter 2004 operating income was $29 million on revenues of $129 million (up 5%). The first quarter record was due primarily to increased software sales.


Core Laboratories had an ‘excellent’ quarter with all-time revenue highs. Notwithstanding this, Core reports a $6.5 million loss for the period due to a write-down on the sale of its Resrvoir Technology division to Paradigm. In its 2003 annual report, Core reveals that it paid just over $10 million cash for its 2002 acquisition of Advanced Data Solutions.

Baker Hughes

BHI reported income for qtr 1 2004 at $95.3 million, up 90% over the same period last year. Mike Wiley, Baker Hughes’ chairman and CEO expects ‘strong activity .. to continue’ and ‘margins to improve throughout the year.’


Divestco announce earnings per share of 3.9 cents for quarter, compares to a loss of 0.7 cents for the same period in 2003 - ‘an increase of 657%’ according to Divesco’s financiers! Software generated revenue of $5.1 million for 2003 up 60% over 2002.


Input/Output’s first quarter net income was $591 thousand on revenues of $36.3 million. These compare with a net loss of $5.3 million, on revenues of $41.2 million for the same period a year ago. Bob Peebler, I/O’s President and CEO, said, ‘The first quarter contained many positive events for I/O.’


Kelman Technologies Inc announced a net loss of $136 thousand for the first quarter—an improvement of $800 thousand over the period last year. Kelman reports ‘modest improvement’ from its data management division—particularly in the US. While the Houston market remained low, the disappearance of two major competitors has ‘thinned-out’ competition.


TGS-NOPEC consolidated net revenues were $28.7 million, down 6% on Q1 2003. Operating profit of $6.6 million was down 39%.


Seitel reports first quarter revenues up 36% to $41 million with income from operations up 168% to $8,5 million. Seitel chairman Fred Zeidman, said, ‘We’ve made significant progress in our turnaround and we continue to work hard to emerge from bankruptcy as soon as possible.’


Aspen Technology’s revenues for its third fiscal quarter totaled $80.7 million of which $35.9 came from software. Dave McQuillin, President and CEO says ‘our customer base is actively looking to invest in IT solutions.’

Peters & Co.

Underwhelming results categorize the service sector and contrast with excellent performance from virtually all oil and gas producers. From May 2001 to May 2004 the Peters & Co. PE Integrated Oils index rose from around 3,000 to 5,000. Oilfield service sector index over the same three year period has had a switchback ride down from 10,800 to a low of 6,600 year end 2001—and back up to a current level of 9,000. More from

Click here to comment on this article

Click here to view this article in context on a desktop

© Oil IT Journal - all rights reserved.