Dril-Quip, Inc. Announces Results for Second Quarter 2010

HOUSTON, Aug. 6 /PRNewswire-FirstCall/ -- Dril-Quip, Inc. (NYSE: DRQ) today 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.

Dril-Quip is a leading manufacturer of highly engineered offshore drilling and production equipment which is well suited for use in deepwater, harsh environment and severe service applications.

Statements contained herein relating to future operations and financial results that are forward-looking statements 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, uncertainties regarding future oil and gas exploration and production activities in the Gulf of Mexico including activities impacted by the current moratorium affecting the U.S. Gulf of Mexico, the Company's international operations, operating risks, and other factors detailed in the Company's public filings with the Securities and Exchange Commission.  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.