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Cameron announces results for 4Q15

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Hydrocarbon Engineering,


Cameron reported fully diluted earnings per share, excluding discontinued operations and other costs, of US$1.08 for 4Q15, compared to US$1.34 for the same period in 2014.

Other costs in 4Q15 amounted to US$115 million on a pretax basis, or US$0.43 per share, primarily related to asset charges and severance, as detailed in an accompanying table.

On a GAAP basis, the company's fully diluted earnings per share for 4Q15 were US$0.65, as compared to US$1.28 for the same period in 2014.

For the full year 2015, the company reported fully diluted earnings per share, excluding discontinued operations and other costs, of US$4.00, compared to US$4.14 for 2014. On a GAAP basis, the company's 2015 fully diluted earnings per share were US$2.60, as compared to US$3.96 for 2014.

Commenting on the company's performance in 4Q15, President and Chief Executive Officer Scott Rowe, said, "Cameron once again delivered very strong operating results in the face of a continued downturn in the energy markets. The company's performance was driven by accelerated progress in the transformation of our cost structure and strong execution. In particular, the company's Subsea segment reported an operating income margin of 23.1%, more than double that of 4Q14."

Segment performance

Subsea

Relative to 4Q14, the segment reported an 85% increase in operating income despite lower revenues, driven in particular by strong execution on several late stage projects as well as a greater mix of services related work. Segment orders increased 27% versus 4Q14 and more than doubled as compared to 3Q15. Orders for the year totalled US$2.23 billion versus US$2.36 billion in 2014.

Surface

Revenues, operating income and margin all improved relative to 3Q15 but were lower than 4Q14 due in large part to the weakness in North American markets.

Drilling

Operating income margin increased to 21.7% in 4Q15 as compared to 18.5% in 4Q14 due to continued strong execution. Revenues and operating income declined, reflecting lower project related backlog as well as a reduction in service activity.

Valves & Measurement

Revenues, operating income and margin all declined relative to 4Q14, reflecting lower volumes and pricing pressures, particularly in the North American distribution market.

Outlook

"Although declines in energy prices will have a negative impact on our business in 2016, we remain focused on the factors that will drive our fundamental long-term performance: execution, customer relationships, cost reduction and technology," said Rowe.

Cash flow from operations

The company generated cash from operations of US$497 million during 4Q15 and US$708 million for the full year 2015. The company ended the quarter with cash, cash equivalents and short term investments totalling US$2.4 billion.

Agreement to be acquired by Schlumberger Limited

On 26 August 2015, Schlumberger Limited and Cameron jointly announced a definitive merger agreement in which the companies will combine in a stock and cash transaction. The agreement was unanimously approved by the boards of directors of both companies and, on 17 December, Cameron stockholders overwhelmingly voted to adopt the merger agreement. The transaction remains subject to regulatory approvals and customary closing conditions, and is expected to close in 1Q16.


Adapted from press release by Rosalie Starling

Read the article online at: https://www.hydrocarbonengineering.com/refining/29012016/cameron-announces-4q15-results-2310/


 

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