W-H Energy Services Sees Increase in Earnings

W-H Energy Services announced first quarter income from continuing operations of $4.4 million ($0.16 per share) which is 33% higher than the $3.3 million ($0.12 per share) reported in the preceding quarter. In the same period last year, the Company reported income from continuing operations of $6.1 million or $0.22 per share.

On April 20, the Company announced that it had completed the sale of Well Safe, Inc., one of two businesses that comprise the Company's maintenance and safety segment, for cash consideration of approximately $28 million. Accordingly, the maintenance and safety segment has been included in the income statement as discontinued operations and in the balance sheet as assets and liabilities held for sale.

The Company projects that earnings per share from continuing operations will range from $0.14 to $0.18 for the quarter ending June 30, 2004.

Revenues for the first quarter of $107.5 million and operating income of $9.3 million were 14 percent and 22 percent higher than the preceding quarter, respectively. Revenues increased 23 percent while operating income declined 20 percent as compared to the comparable quarter in the prior year.

Domestic revenues increased 16 percent over the preceding quarter and were 24 percent higher than the first quarter of last year. International revenues increased 2 percent over the preceding quarter and were 22 percent higher than the first quarter of last year.

The Company's operating income as a percentage of revenues for the first quarter was 8.7 percent compared to 8.1 percent in the previous quarter and 13.4 percent reported for the first quarter last year.

Quarterly Segment Results

Drilling

Revenues in the drilling segment were $73.1 million in the first quarter, 30 percent higher than the comparable period in the prior year and 12 percent higher than the preceding quarter. Operating income of $6.0 million was 14 percent lower than the comparable period in the prior year and 22 percent lower than the preceding quarter.

Completion and workover

Revenues in the completion and workover segment were $34.5 million in the first quarter, 11 percent higher than the comparable period in the prior year and 17 percent higher than the preceding quarter. Operating income of $5.9 million was 15 percent lower than the comparable period in the prior year and 119 percent higher than the preceding quarter.

W-H Energy is a diversified oilfield service company that provides products and services used primarily for the drilling, completion and production of oil and natural gas wells. The Company has onshore operations in the United States, Canada, Brazil, Europe, North Africa and the Middle East and offshore operations in the Gulf of Mexico, the North Sea, the Persian Gulf, the Gulf of Suez, the Mediterranean Sea and off the coast of Brazil.
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