Boston, MA 03/03/2014 (wallstreetpr) – Shares of companies in the crude oil sector have risen dramatically as news about the Ukraine crisis has taken center stage. Dril-Quip, Inc. (NYSE:DRQ) is no exception, but the rise is also on account of its fourth quarter and full year results.
The Ukraine Crisis And Price Of Crude:
Crude oil demand is expected to fall during the current quarter as winter demand for heating requirement eases. This would have lead to a fall in crude oil prices. In fact, many OPEC countries were already preparing for this and had announced a cut back in production. The Ukraine crisis has managed to change all this. Ukraine is important to Russia as it supplies crude oil and natural gas to Europe through Ukraine. A long and festering political turmoil would affect the supplies to Europe. The situation is escalating out of control. This may lead to an upsurge in demand for crude oil from America as well as OPEC countries and will affect results of companies like Dril-Quip, Inc. (NYSE:DRQ).
The Financial Results:
The effects of this political crisis will be known only in the next quarter. The fourth quarter of 2013 saw the company declare revenues of $232.4 million, an increase of 23% y-on-y basis. Earnings of $1.21 per share also beat the analysts’ expectations. Dril-Quip, Inc. (NYSE:DRQ) also declared net income of $47.1 million for the fourth quarter of 2013 against $31 million for the same period last year. This was in spite of an after tax foreign exchange loss of $0.7 million. The increase in revenues was on account of increase in product revenues of $40.5 million and increase in service revenues of $3.5 million. For the full year 2013, the company declared revenues of $872.4 million, an increase of 19% over $733 million declared for the full year 2012. Though the results were negatively impacted by after tax foreign exchange loss of $3.8 million, the company could declare net income of $169.8 million against $119.2 million declared for the same period in 2012.
