AMSTERDAM, June 29, 2018 /PRNewswire/ -- Core
Laboratories N.V. (NYSE: "CLB US" and Euronext Amsterdam: "CLB NA")
("Core", "Core Lab", or the "Company") is announcing revised
guidance from continuing operations for second quarter 2018 and
initiating guidance for third quarter 2018.
Delays in the recovery of international field development
activity are impacting and deferring revenue opportunities for the
Company's Reservoir Description segment. Reservoir Description is
heavily exposed to international activity levels, with over 85% of
its revenue sourced outside the U.S. from projects where wells have
been drilled and core and reservoir fluid samples have been taken
for analyses. These delays exist primarily in the North Sea,
Middle East and Asia-Pacific regions, but also in the
Gulf of Mexico and other deepwater
provinces. In addition, the revised guidance also includes
ramp-up costs associated with the deployment of new laboratory
technology and new laboratory infrastructure, such as new
client-driven labs in Qatar,
Indonesia, and the North Slope of
Alaska. Reservoir Description international client project
discussions continue to increase in alignment with approximately 15
final investment decisions ("FID's") announced year-to-date. The
total number of FID's for 2018 is expected to exceed the 20 FID's
in 2017. However, activity levels and revenue opportunities
from those FID's and the emerging international recovery are now
not expected to have a positive financial performance impact until
late Q4 2018 and throughout 2019.
Production Enhancement segment operations, largely focused on
complex completions in unconventional tight-oil reservoirs, are
continuing to outperform as projected and gain market share.
Production Enhancement's performance is expected to continue
outpacing the industry's completion activity. Core's clients
continue to seek technological solutions and services, namely
Core's HERO®PerFRAC perforating system and FlowProfiler™
EDS diagnostics for increasing daily production and
EURs.
Core continues to expect quarterly sequential improvements
throughout 2018 in revenue, operating margins, profits and EPS;
however, due to delays in revenue opportunities from international
activity, Core now projects that second quarter 2018 results will
be only slightly higher than experienced in the first quarter. The
revised guidance for second quarter revenue ranges from
$174,000,000 to $175,000,000 creating an expected EPS of
$0.57 to $0.59, exceeding both sequential and
year-over-year results. Full Company operating margins are
expected to be approximately 20%.
The delay in timing of the expected revenue opportunities from
international activity improvement will cause third quarter
projected results to be similar to the Company's prior second
quarter guidance. Core initiates its third quarter guidance
by projecting revenue of approximately $177,000,000 to $179,000,000 resulting in expected EPS ranging
from $0.64 to $0.66; yielding operating margins that should
exceed 20%.
The Company's revised second quarter 2018 guidance and its
initial third quarter guidance exclude gains or losses in foreign
exchange and assumes an effective tax rate of 15%.
Core Lab will host its second quarter 2018 earnings call
Thursday, July 26th, 2018 at
7:30 a.m. CDT / 2:30 p.m. CEST to discuss financial and
operational results. An earnings release will be issued after
market close on July 25th.
Core Laboratories N.V. (www.corelab.com) is a leading provider
of proprietary and patented reservoir description, production
enhancement, and reservoir management services used to optimize
petroleum reservoir performance. The Company has over 70
offices in more than 50 countries and is located in every major
oil-producing province in the world.
This release includes forward-looking statements regarding the
future revenue, profitability, business strategies and developments
of the Company made in reliance upon the safe harbor provisions of
Federal securities law. The Company's outlook is subject to
various important cautionary factors, including risks and
uncertainties related to the oil and natural gas industry, business
conditions, international markets, international political climates
and other factors as more fully described in the Company's 2017
Form 10-K filed on 12 February 2018,
and in other securities filings. These important factors could
cause the Company's actual results to differ materially from those
described in these forward-looking statements. Such statements are
based on current expectations of the Company's performance and are
subject to a variety of factors, some of which are not under the
control of the Company. Because the information herein is based
solely on data currently available, and because it is subject to
change as a result of changes in conditions over which the Company
has no control or influence, such forward-looking statements should
not be viewed as assurance regarding the Company's future
performance. The Company undertakes no obligation to publicly
update any forward looking statement to reflect events or
circumstances that may arise after the date of this press release,
except as required by law.
Visit the Company's website at www.corelab.com. Connect
with Core Lab on Facebook, LinkedIn and YouTube.
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SOURCE Core Laboratories N.V.