Steve Orr, Chief Executive Officer of Shawcor Ltd. remarked: “As expected, Shawcor reported a significant loss in the second quarter as a result of depressed activity levels in all of the company’s global regions. Low commodity prices continue to negatively impact North American well completion activity and global oil and gas development capital spending with a resulting effect on demand for the Company’s products and services.”
Orr added: “We are confident that the exceptionally low revenue and significant loss reported in the second quarter will be the low point for Shawcor in this cycle. Starting later in the third quarter, we will commence production of the flow assurance scope of work for the Shah Deniz project at our Kabil, Indonesia facility. In the fourth quarter, the ramp up of Shah Deniz production and the start of production for anti-corrosion coating of pipe destined for the Sur de Texas-Tuxpan project, will return Shawcor to operating profitability. In early 2017, we will launch full production of the concrete coating scope of work for the Sur de Texas-Tuxpan project. With an estimated value of in excess of US$350 million, the Sur de Texas-Tuxpan project combined with a modest but steady improvement in North American well completion activity is expected to enable the company to deliver strong growth in financial performance in 2017.”
- Second quarter revenue of US$255 million decreased by 30% from the US$366 million reported in the first quarter of 2016 and was also 36% lower than the US$398 million reported in the second quarter of 2015.
- Adjusted EBITDA in the second quarter of 2016 was a loss of US$20.3 million, compared with an income of US$36.6 million in the first quarter of 2016 and versus an income of US$12.9 million in the second quarter of 2015. Adjusted EBITDA in the second quarter of 2016 includes restructuring charges of US$12.6 million.
- Net loss (attributable to shareholders of the company) in the second quarter of 2016 was US$41.7 million (or a loss of US$0.65 per share diluted) compared with net income of US$7.5 million (or US$0.12 per share diluted) in the first quarter of 2016 and a net loss of US$8.5 million (or US$0.13 per share diluted) in the second quarter of 2015.
- The company’s order backlog was US$506 million at 30 June 2016, an increase of 41% from US$358 million at 31 March 2016.
More information can be found here.
Edited from source by Stephanie Roker
Read the article online at: https://www.worldpipelines.com/business-news/12082016/shawcor-2q16-results/