Revenues for the third quarter were $1.7 billion, the highest level recorded in company history. Third quarter revenues improved 58 percent over the same period last year. Sequentially, revenues rose 10 percent, led by the continued Eastern Hemisphere growth and the seasonal recovery in Canada.
In the first nine months of 2006, revenues were $4.8 billion and income from continuing operations was $626.2 million, before the second quarter non- recurring charge, or $1.75 per diluted share. In 2005, the company reported revenues for the first nine months of $2.9 billion, and income from continuing operations before charges of $298.8 million, or $0.98 per diluted share.
Evaluation, Drilling & Intervention Services
The division's revenues for the quarter were $1,100.1 million, a 75 percent increase above the same quarter in the prior year and a 14 percent increase from the prior quarter. Geographically, Canada had the highest sequential growth at 50 percent, driven by the seasonal recovery. The Eastern Hemisphere registered a sequential 13 percent improvement, essentially driven by the Middle East region. The United States revenues rose 10 percent sequentially, bolstered by strong activity levels. On a product line basis, wireline and re-entry led the growth.
Operating income of $293.0 million was more than two times the same quarter in the prior year and 22 percent higher than the preceding quarter. Operating income margins, excluding research and development, were 26.6 percent, 380 basis points higher than the third quarter of 2005 and 160 basis points above the prior quarter.
Completion & Production Systems
The division's third quarter revenues of $596.7 million were led by a strong performance in Asia and the seasonal recovery in Canada. This division's performance reflected improvements in its engineered chemicals and progressing cavity pump product lines.
The current quarter's operating income of $131.1 million is nearly double the same quarter in the prior year and 13 percent higher as compared to the second quarter of 2006. Operating income margins improved 690 basis points since the prior year's third quarter and 180 basis points sequentially.
Share Repurchase Program
During the third quarter the company repurchased 6.3 million shares for $269.0 million as part of the current $1.0 billion Share Repurchase Program. The company has repurchased 12.1 million shares year-to-date for an aggregate price of $531.5 million.
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