Varco International Inc., one of the top manufacturers of oil- and gas-drilling equipment, reported Thursday that its earnings increased 61% last year on the strength of new products and acquisitions.
The company ended 1991 with $14 million in net income, or 45 cents a share, compared to $8.7 million, or 33 cents, in 1990. It came on revenues of $216.6 million, up 64% from $132.1 million the previous year.
Varco shares closed at $6.88 Thursday on the New York Stock Exchange, up 25 cents for the day.
The Orange-based company said the increased profits and sales were due largely to the full-year impact of its Martin-Decker/Totco Instrumentation Division, created by the combination of two separate acquisitions made in 1990.
"Our 1991 accomplishments reflect the continuing success of our key strategies," said Varco President George Boyadjieff.
"Our recent acquisitions contributed significantly to the financial results while providing a substantially broader revenue base.
"We introduced several products which strengthened our leadership position in providing safer, more productive equipment to the drilling industry," he said.
Company spokesman Richard Kertson said Varco introduced three new models of a drilling system that employs an electric motor at the top of the drill stem instead of on the floor of the drilling rig.
The "top drive" drilling system is considered more efficient and allows crews to drill farther without having to stop to add more pipe. Varco also introduced a new type of revolving vertical pipe rack.
Total incoming orders were up 0.05% to $178.5 million in 1991, compared to $177.5 million the year before, and the company had a backlog of $36.5 million as of Dec. 31.
For the fourth quarter, Varco reported net income of $3.5 million, or 11 cents a share, up 3% from $3.4 million, or 13 cents a share, in the final quarter of 1990. Sales for the quarter were $57.4 million, up 29% from the previous year's $44.6 million.
Varco International Inc.
Varco International Inc.'s profits and revenue for the fiscal year ending Dec. 31 skyrocketed 62% and 61%, respectively. Reported profits of $14 million were up $5.3 million from 1990, while revenue of $216.6 million was up $84.5 million.
The company attributes a significant portion of the increase to the full-year impact of its Martin-Decker/Totco Instrumentation Division, which was formed from two acquisitions completed in 1990.
Figures are in thousands, except per-share data.
4th Qtr 4th Qtr 12 Months 12 Months 1991 1990 1991 1990 Revenue $57,443 $44,568 $216,623 $132,108 Net income (loss) 3,547 3,447 14,031 8,735 Per share (loss) 0.11 0.13 0.45 0.33
Source: Varco International Inc.