Dril-Quip Highlights 2Q Financial Results



Dril-Quip announced net income of $28.0 million, or $0.70 per diluted share, for the three months ended June 30, 2010, versus net income of $26.7 million, or $0.68 per diluted share, for the second quarter of 2009. Total revenues were $142.0 million for the quarter ended June 30, 2010 compared to $133.2 million for the same period in 2009. The increase in revenues resulted from increases of $16.2 million in offshore rig equipment revenues offset by decreases of $4.5 million in revenues related to subsea equipment and $2.9 million in surface equipment revenues. Operating income was $39.3 million in the second quarter of 2010 compared to $36.3 million in the second quarter of 2009.

For the six months ended June 30, 2010, net income was $53.7 million, or $1.34 per diluted share, compared with net income of $51.4 million, or $1.31 per diluted share, for the same period in 2009. Revenues for the six months ended June 30, 2010 were $284.5 million compared to revenues of $260.7 million for the same period last year.

In addition, the Company announced that its backlog at June 30, 2010 was approximately $538 million, compared to its June 30, 2009 backlog of approximately $618 million. The Company previously announced on July 15, 2010 that it had been awarded a contract valued at approximately $100 million to supply drilling and production equipment for a tension leg wellhead platform to be installed in the Papa Terra field located in the Campos Basin offshore Brazil. The value of this contract will be included in Dril-Quip's backlog during the third quarter of 2010.

The Company expects its earnings per share for the quarter ending September 30, 2010 to approximate $0.65 to $0.75 per share, excluding any unusual or special charges. For a discussion of matters related to the Deepwater Horizon incident and the government-imposed moratorium on deepwater drilling activities in the U.S. Gulf of Mexico, refer to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2010.


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