Cameron reported fully diluted earnings per share, excluding discontinued operations and other costs, of US$0.83 for the second quarter of 2015, compared to US$0.95 for the same period of 2014.
Other costs in the second quarter of 2015 amounted to US$37 million, or US$0.12 per share, as detailed in an accompanying table.On a GAAP basis, the company's fully diluted earnings per share for the second quarter and first six months of 2015 were US$0.73 and US$0.98, respectively, as compared to US$1.08 and US$1.57 for the same periods of 2014.
"The company reported solid earnings and orders despite challenging market conditions,” said Chairman and Chief Executive Officer Jack B. Moore. “Our financial results reflected outstanding execution across the enterprise when compared to the year ago quarter, driven by our Subsea and Drilling segments and a 16% decline in our SG&A expense."
Consolidated orders increased 15% on a sequential quarter basis from the first to the second quarter of 2015, reflecting the breadth and competitive differentiation of Cameron's portfolio of businesses. Specifically, the sequential quarter gains occurred in three of the company's four reporting segments and amounted to 32% in Subsea, 23% in Drilling and 5% in Surface. Subsea processing technology continued to gain traction during the second quarter, with the segment recording a significant award for subsea boosting in the Gulf of Mexico. The segment also recorded a US$330 million award for subsea production equipment for a project offshore North Africa and, separately, a front end engineering and design contract for a proposed floating LNG development offshore northwest Australia.
The company ended the quarter with cash, cash equivalents and short term investments totalling US$1.7 billion and a net debt to total capital ratio of 17%, which gives the company significant flexibility to deal with the uncertainty presented by this downturn, execute on its strategic initiatives and position itself for future growth.
Cameron's capital expenditures totalled US$41 million in the second quarter of 2015, as compared to US$73 million in the second quarter of 2014. As of the end of the second quarter of 2015, approximately US$285 million remained available under the company's existing share purchase authorisation.
"Although the industry downturn continues to pose many challenges, we believe the pace of the decline in customer spending has begun to moderate,” Moore explained. “In this environment, we remain focused on the things we can control: the ongoing systemic reduction in our cost structure, execution, customer relationships and technology advancement. We believe this focus will ensure that the company generates long term value for our stakeholders."
Adapted from press release by Rosalie Starling