Newpark Resources Says Almost All Facilities Returned to Service
Newpark Resources says that following the impact of Hurricanes Katrina and Rita on its operations, all facilities, with the exception of its drilling fluid and environmental services sites in Cameron, La. and Venice, La., have been returned to service. Newpark's Cameron facilities are expected to be returned to service within the next 60 days. The company's Venice operations will remain out of service indefinitely due to the level of infrastructure damage in the area. Meanwhile, in order to meet customer needs, Newpark has added to or reinforced its customer service capabilities at Sabine Pass, Galveston and Freeport, Tx. and at Intracoastal City and Berwick, La. All facilities, including the company's Cameron and Venice operations, are insured for physical damage and business interruption losses.
James D. Cole, Chief Executive Officer of Newpark Resources said, "While each of the facilities in the path of the hurricanes sustained some level of damage, substantially all of our facilities, other than Venice and Cameron, are operational. We believe that we are on target to meet third quarter estimates and expect that activity in the Texas Gulf Coast market, which was less directly affected, should return to pre-storm levels in the next 10 days."
Recovery of Newpark's operations along the Louisiana portion of the market will depend upon individual customers' situations driven by their personnel, logistics and infrastructure damage. The company anticipates that over the next sixty days, business activity in the Louisiana market will return to more normal levels and that it should meet or exceed analysts' earnings estimates for the fourth quarter. Newpark's barite grinding plants, which support its drilling fluids operations, were minimally impacted and are in service to meet the needs of its customers.
Cole concluded, "We are working hard to meet the needs of our customers while we continue to help all of our employees who have been impacted by Hurricanes Katrina and Rita. We appreciate the support we have received and will continue to deliver positive results."
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