Q2 2005 results confirm upstream upturn

Most all companies report near record results for Q2 2005 and forecasts look good for the full year.

Divestco generated record revenue of $9.2 million for the second quarter of 2005, up 52% on the same period in 2004 (all subsequent comparisons are Q2 on Q2).


Fugro’s turnover for the first six months of 2005 was €518 million, a 7.9% hike. High oil prices are increasing oil company investments as witnessed by two reports forecasting a 13% hike for 2005.

Baker Hughes

Baker Hughes reports revenues for Q2 2005 at $1,7 billion, up 18%. Chairman and CEO Chad Deaton said, ‘We have increased our capital spending budget for 2005 and continue to invest in people and new technology and to strive for fair pricing.’


CGG’s second quarter 2005, processing and reservoir revenues were €27 million, up 7% in a market ‘stimulated by the demand for high-end imaging services’. CGG Chairman and CEO, Robert Brunck said, ‘This confirms the positive trend in the seismic market.’


Computer Modelling Group’s revenues for Q2 2005 were $3.4 million, up from $3.3 million. CMG sees increased demand for reservoir simulation and is to expand operations with the addition of eight new staff in 2006.

Core Laboratories

Core Laboratories reported its highest quarterly totals ever for Q2 2005 with quarterly revenue up 16% at $118 million.


Halliburton reports record operating income of $607 million for Q2 2005. Digital and Consulting Solutions (DCS) operating income for the quarter was $16 million, 14% up from Q2 2004. Landmark’s operating income increased by $14 million. Halliburton reports ‘strong growth’ from its production optimization segment.


Input/Output, Inc. announced Q2 2005 revenues of $84.0 million, up from $62.3 million. GXT, acquired in June 2004, generated revenues of $24.2 million although the company notes ‘low processing margins due to excess capacity.’


Despite a net loss of $2.1 million for Q2 2005, Kelman has launched a recruitment campaign—anticipating expanded operations in the US and internationally. Data management activity performs ‘reasonably well’ in Canada; less so in Houston. Kelman sees activity strengthening, hoping this will attenuate the ‘fierce price competition that has plagued the seismic processing industry.’


PGS reports ‘continued strong seismic momentum’ and revenues of $292.8 million, up 21% from Q2 2004.


Houston-based Seitel, Inc. reported revenue of $36.0 million for the second quarter 2005. CEO Rob Monson said, ‘We are seeing more interest in older US 2D data and healthy activity in our core 3D data base.’

TGS Nopec

TGS Nopec’s net revenues for Q2 2005 were $55.0 million, up 34%. CEO Hank Hamilton said, We see more urgency from our customers in data purchasing as exploration programs become a higher priority.’ The TGS Imaging and A2D well log segments totaled $1.1 million, up from $0.6 million in Q2 2004. The market for seismic services and products continues to strengthen as witnessed by a ‘clear and definite’ increase in exploration focus from oil companies.


Weatherford International’s revenues for the second quarter were $937.3 million – the highest in the company’s history – and up 26% on the same period last year. R&D spend was $23.9 million in the quarter.


WellPoint Systems’ second quarter revenues (ending June 30, 2005) showed an increase of 22% to $1.9 million over 2004 with ‘strong’ US and software revenue growth.

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