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[August 2005]
CARBO Ceramics Announces Record Performance
CARBO Ceramics Inc (Irving, TX, USA) - the ceramic proppant manufacturer - announced net income for the second quarter of 2005 of US$12.2 million on revenues of US$63.8 million. Revenues for the quarter increased by 22% and net income increased by 24% compared to Q2 2004.
The revenues and net income for Q2 2005 were the highest quarterly totals for any quarter in the company's history. The increase in revenue compared to Q2 2004 was attributable to a 12% increase in sales volume, a 7% increase in the average selling price of the ceramic proppants and a 52% increase in revenues from Pinnacle Technologies.
World-wide proppant sales totalled 190.3 million pounds for the quarter, with an increase in North American sales volume offsetting a decline in overseas sales volume. The North American increase was primarily due to record quarterly shipments in the USA and Mexico, the latter increasing by 106% over Q2 2004 and setting a new company record for the region.
Sales volume for Canada was impacted by the normal seasonal decline but was 12% ahead of Q2 2004. The decline in overseas sales resulted mainly from decreases in sales volume in Russia and the North Sea. Sales in Russia slowed due to the transfer of ownership of Yukos and an increase in the availability of locally produced proppant. North Sea sales declined due to customer project delays in that region.
The average selling price for CARBO's ceramic proppants increased in Q2 2005 compared to Q2 2004 due to the impact of price increases made in July 2004 and June 2005. The company's most recent price increase was effective 1 June 2005 and represented an increase of around 4%.
President and CEO Dr Mark Pearson commented: "We believe that ceramic proppant and fracture diagnostic services present the oil and gas industry with a significant opportunity to improve production and recovery rates, and we are moving forward with our plans to add manufacturing capacity worldwide.
"Our new facility in McIntyre, Georgia is on schedule for completion this year, and, as we recently announced, we have broken ground on our new facility in the city of Kopeysk, in the Russian Federation. Each of these facilities has been designed to be readily expanded to meet anticipated future demand."
www.carboceramics.com
ENDS