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[Nov 2006]
CARBO Ceramics Inc Announces Record Quarterly and Year-to-Date Earnings
CARBO Ceramics Inc (Irving, TX, USA) has announced record quarterly net income of US$13.5 million on record revenues of US$77.4 million for the quarter ended 30 September 2006. Revenues for the quarter increased 21% while net income increased 8% compared to the third quarter of 2005.
For the nine months ended 30 September 2006, the company reported record net income of US$39.3 million on revenues of US$225.2 million. Revenues and net income for the first nine months increased 19% and 8%, respectively, compared to the same period a year earlier.
President and CEO Gary Kolstad commented on the quarter's results and provided additional guidance for 2006, stating: "We are pleased with the increase in revenue and profitability that has been made possible by the addition of new proppant manufacturing capacity and growth this year in the fracture mapping and reservoir monitoring business of Pinnacle Technologies, Inc. ("Pinnacle"). We have seen considerable growth in the U.S. and our recent performance in Canada has been particularly impressive. We will continue to focus on international opportunities and expect to improve our sales performance in Russia once our manufacturing facility is complete at the end of this year. The recent increase in natural gas in storage and the decline in North American natural gas prices have resulted in some operators shutting in gas production and have increased concerns regarding North American drilling activity levels. Despite these concerns, we expect fourth quarter revenue and income levels to be similar to third quarter levels, driven by the use of ceramic proppants in new formations within North America. Looking ahead to 2007, our results will be impacted by the level of natural gas drilling activity in North America and the success of field trials currently underway to demonstrate the value of engineered fracture designs and higher conductivity proppants to operators of oil and gas wells."
www.carboceramics.com
ENDS