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UPDATE 2-Robbins & Myers sees strong FY on shale drilling boom
January 7, 2011 / 1:44 PM / 7 years ago

UPDATE 2-Robbins & Myers sees strong FY on shale drilling boom

* Q1 EPS $0.44 vs est. $0.33

* Q1 rev up 27 pct to $163.9 mln, beats mkt

* Raises FY EPS view to $1.85-2.05, above Street

* Shares up 13 pct to a 2-year high (Adds details, background, share movement)

Jan 7 (Reuters) - Robbins & Myers Inc <RBN.N >, known for its oil and gas drilling equipment, posted strong quarterly results and boosted its full-year earnings outlook as oil firms step up investments in shale drilling.

The company’s shares, which have doubled in value since touching a year-low of $20.09 in May last year, rose 13 percent to $40.29, their highest in more than two years. They were trading up 12 percent at $39.88 Friday morning on the New York Stock Exchange.

“We are benefiting from growth in unconventional drilling, which includes both horizontal and directional rigs, as exploration and production companies invest to capture oil and gas from the shale formations,” Chief Executive Peter Wallace said in a statement.

United States is seeing a boom in shale oil and gas exploration with oil production from the Bakken shale in North Dakota rising 20-fold in just a year. That success has led independent producers to fan out to other shale formations in search of similar gains. [ID:nN20139968].

Dayton, Ohio-based Robbins & Myers agreed to buy oilfield and pipeline services firm T-3 Energy Services TTES.O for $422 million in October to take advantage of the growth in drilling and boost its key fluid management business.

Sales at the fluid management group, which provides surface and down-hole pumps and systems, power sections and pipeline closures and accounts for about 55 percent of total sales, rose 34 percent to $91.3 million in the first quarter.

The company, which also serves pharmaceutical and industrial markets, now expects full-year earnings of $1.85-2.05 a share, while analysts on average were looking for a profit of $1.60 a share, according to Thomson Reuters I/B/E/S. (Reporting by Bijoy Koyitty in Bangalore; Editing by Prem Udayabhanu, Unnikrishnan Nair)

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