Forum Energy Technologies announced second quarter 2015 revenue of $284 million, a decrease of $144 million, or 34%, from the second quarter 2014.
Net income for the quarter was $9 million or $0.10 per diluted share compared to $40 million or $0.41 per diluted share for the prior year period. Excluding $0.06 per share of non-operational items, adjusted diluted earnings per share were $0.16 in the second quarter 2015. Non-operational items for the quarter included primarily a foreign exchange loss and a restructuring charge.
Drilling & Subsea segment revenue in the second quarter 2015 was $170 million, a decrease of $110 million, or 39%, from the second quarter 2014. The revenue decline was due to lower drilling activity levels as reflected by the 51% drop in the North America land rig count for the same period. Additionally, reduced capital spending in the subsea sector impacted results compared to the prior year quarter.
Production & Infrastructure segment revenue in the second quarter 2015 was $115 million, a decrease of $34 million, or 23%, from the second quarter 2014. The reduction in North America completion activity resulted in lower sales of well site production equipment and pressure pumping consumable products from the prior year period. Partially offsetting the revenue decline was the addition of the J-Mac acquisition in the first quarter 2015. Sales of Forum’s valves were down only modestly compared to the prior year.
Cris Gaut, Forum’s Chairman and Chief Executive Officer, remarked, “Forum second quarter revenue decreased 18% sequentially, primarily due to the continued decline in North America drilling and completion activity as the rig count dropped 40% from the first quarter.
“Our team implemented additional cost reduction measures and scaled down our business in line with declining activity levels. EBITDA for the quarter, excluding non-operational items, was $41 million, or 14.5% of revenue.
“We are focused on managing our cost structure and operating margins, reducing working capital and generating free cash flow as we enter the second half of the year.
“Customer spending remains depressed in this low commodity price environment. New orders received by Forum in the second quarter were $198 million, a decline of 31% from the first quarter. Our second quarter 2015 book to bill ratio was 70%.
“We expect the lower level of new orders from the reduction in drilling and completion activity during the second quarter to have an impact on our third quarter results.
“Forum expects diluted earnings per share for the third quarter 2015 of $0.08 to $0.13.”