Superior announced the estimated impact on its second half of 2010 operations from the six-month moratorium on deepwater drilling in the Gulf of Mexico recently announced by the U.S. Department of Interior.
Dave Dunlap, Chief Executive Officer of Superior, commented, "Based on information that we have received from our customers and our current understanding of the deepwater drilling moratorium, we believe that the effects of the moratorium could reduce 2010 earnings per share in the second half of the year by as much as $0.20.
"We estimate that less than 10% of our annual total revenue comes from support of deepwater drilling in the Gulf of Mexico – which is generated by the Drilling Products and Services Segment – based on our historical exposure to deepwater drilling and current activity in that market area. At the time the moratorium was announced, we had assets from our Drilling Products and Services Segment on 31 rigs affected by the moratorium (500 ft. water depths and greater).
"Our estimate includes the net effect of oil spill response work. Several of our business units are responding to the oil spill and related activities, and we anticipate that this will continue into the second half of 2010. Our oil spill response participation includes well control, engineering, rental tools, accommodations and environmental support services.
"We believe that our broad range of products and services, as well as our geographic diversification, reduce the impact of the drilling moratorium."
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