Varco International Lists $3.7-Million Loss

Varco International Inc. reported a third-quarter net loss of $3.7 million contrasted with net income of $202,000 for the comparable period a year earlier.

The Orange-based maker of oil and gas drilling tools and equipment said sales for the period fell to $8.7 million from $15.5 million for the third quarter of 1985.

Continued low energy prices have severely constricted oil- and gas-drilling activity around the nation and reduced earnings for Varco and other exploration service concerns.

For the nine months, Varco reported a net loss of $6.6 million on sales of $35.6 million contrasted with a net loss of $2.2 million on sales of $44.8 million for the same period the prior year.

Separately, Varco said it filed with the Securities and Exchange Commission for a $20-million offering of convertible debentures. The debentures mature in 2006 but are subject to mandatory redemption beginning in 1996 to retire $15 million of the issue, Varco said.

Neither the pricing nor the conversion rate has been determined yet, the company said.

Proceeds from the offering will be used for debt payment, working capital and general corporate purposes, Varco said.

Shearson Lehman Brothers will be the lead underwriter.