BJ Services Reports Fourth Fiscal Quarter Net Loss From Continuing Operations of $0.01 per Diluted Share
Monday, Nov 23, 2009
HOUSTON, Nov. 23 /PRNewswire-FirstCall/ -- BJ Services Company (NYSE: BJS; PCX; CBOE) today reported a net loss from continuing operations of $2.8 million, or $(0.01) per diluted share, for the fourth quarter of fiscal 2009, which ended September 30, 2009, compared to a net loss from continuing operations of $0.10 per diluted share for the previous quarter and net income from continuing operations of $0.59 per diluted share for the fourth quarter of fiscal 2008. Discontinued operations, consisting of the Company's pressure pumping business in Russia, accounted for a net loss of $0.02 per diluted share in the fourth quarter of fiscal 2009, compared to a net loss of $0.01 per diluted share for the previous quarter and a net loss of $0.02 per diluted share for the fourth quarter of fiscal 2008. The Company completed its last pressure pumping contract in Russia in July, so the Company reclassified its Russia pressure pumping business as a discontinued operation and, accordingly, recast prior periods to conform to that presentation.
Revenue in the fourth quarter of fiscal 2009 was $878.2 million, a 13% increase from the $780.2 million reported in the previous quarter and a 42% decrease from the $1.51 billion reported in the prior year's September quarter. Operating loss for the quarter was $15.0 million, compared to an operating loss of $39.1 million for the previous quarter and operating income of $262.2 million in the fourth quarter of fiscal 2008. Fourth quarter results included $5.3 million of transaction costs related to the pending merger with Baker Hughes Incorporated. Operating income (loss) as a percentage of revenue was (1.7) % in the fourth quarter of fiscal 2009, compared to (5.0) % in the previous quarter and 17.4% in the comparable quarter of the prior year.
Commenting on the results, Chairman and CEO Bill Stewart said, "Our fourth quarter results reflected some sequential improvement in U.S. drilling activity, particularly with respect to oil exploration, and some margin improvement that primarily resulted because of asset impairment and employee termination costs recorded in the third quarter that did not recur in the fourth quarter. Drilling activity in the U.S., as measured by average active drilling rigs, increased 4% sequentially, but declined 51% compared to the same period a year ago. Natural gas drilling was 5% lower sequentially, and North America natural gas prices show little sign of meaningful near-term recovery. Our Canadian operations were slow to recover from the spring break-up period, but showed significant improvement from the third fiscal quarter. International pressure pumping revenues were flat compared to the prior quarter, as was international drilling activity, with sequential margin erosion particularly in Latin America. Our Oilfield Services Group results rebounded significantly from a very weak third fiscal quarter.
"While we experienced meaningful sequential improvement and generally stable U.S. pricing during the quarter, near term market conditions overall are still very challenging. Looking at the longer term horizon, we have more reason for optimism. We were recently awarded a four-year contract, renewable for two additional two-year periods, to provide coiled tubing services for Statoil ASA in Norway with estimated revenues of up to $250 million over the full eight-year period, and a $50 million letter of intent for a three-year pipeline construction contract on the Nord Stream gas pipeline project extending from Russia to Germany via the Baltic Sea. Revenue related to these contracts is expected to begin in early fiscal 2011. And, of course, we look forward to completing the merger with Baker Hughes in the first calendar quarter of 2010 and beginning to realize the benefits of integrating these two industry leaders into a more competitive global enterprise."
During the quarter, cash and cash equivalents increased $51.3 million to $282.6 million, as the Company continued to generate positive operating cash flow. The Company repaid $14.3 million of indebtedness, reducing outstanding debt to $506.1 million. Other uses of cash during the quarter included capital expenditures of $80.0 million and the payment of $14.6 million in dividends.
Source: BJ Services
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