Dril-Quip, Inc. Discusses Operational Outlook
March 18 2020 - 4:30PM
Dril-Quip Inc. (NYSE: DRQ), (the “Company” or “Dril-Quip”) said
today that it was withdrawing its first quarter 2020 guidance
provided in its year-end 2019 earnings release and conference call
in late February. This is in response to the current market
uncertainty caused by COVID-19 disruptions, as well as the supply
and demand pressures impacting the oil and gas industry.
Blake DeBerry, Dril-Quip's President and Chief
Executive Officer, commented, “We continue to monitor the slowdown
in worldwide business activity due to the global response to
COVID-19. In response to the COVID-19 outbreak and for the
wellbeing of our customers, employees and vendors, we have
implemented our business continuity plan, which includes staggered
shifts in our manufacturing and after market operations, working
from home where practical, self-quarantine of offshore service
personnel on return and cancellation of all non-essential
travel.”
“The sudden and sharp decline in oil prices has
forced our customers to reconsider their capital spending plans for
2020. These actions have occurred swiftly since our recent
earnings release and conference call, and there remains a high
degree of uncertainty in our industry as to the future direction of
oil prices and related capital investment. As a result, we
have withdrawn our first quarter 2020 guidance and look to manage
through this volatile market as we have successfully done in the
past.”
“As we look to the future, we believe Dril-Quip
is well-positioned to weather this downturn. We took
transformational steps in 2019 to restructure our business that
allows us to operate more efficiently, with a smaller overall
footprint and a lower cost structure. Our cash position is
very strong at over $399 million at year-end 2019, and our balance
sheet remains debt-free. We will continue to look at ways to
reduce costs, including thoughtfully reevaluating our capital
expenditures and re-prioritizing R&D, improve performance
and execute operationally until there is better line of sight on
global oil demand and the ultimate impact of the Coronavirus.”
About Dril-Quip
Dril-Quip is a leading manufacturer of highly
engineered drilling and production equipment for use onshore and
offshore, which is particularly well suited for use in deep-water,
harsh environments and severe service applications.
Forward-Looking Statements
Statements contained herein relating to future
operations and financial results that are forward-looking
statements, including those related to market conditions,
anticipated changes to the capital programs of our customers,
anticipated costs, cost synergies and savings, and expectations
regarding operating results, are based upon certain assumptions and
analyses made by the management of the Company in light of its
experience and perception of historical trends, current conditions,
expected future developments and other factors. These statements
are subject to risks beyond the Company’s control, including, but
not limited to, the volatility of oil and natural gas prices and
cyclicality of the oil and gas industry, project terminations,
suspensions or scope adjustments to contracts, uncertainties
regarding the effects of new governmental regulations, the
Company’s international operations, operating risks, and other
factors detailed in the Company’s public filings with the
SEC. Investors are cautioned that any such statements are not
guarantees of future performance and actual outcomes may vary
materially from those indicated.
SOURCE: Dril-Quip, Inc.
Raj Kumar, Vice President Finance and Chief
Accounting Officer, (713) 939-7711
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