HOUSTON, March 18, 2020 (GLOBE NEWSWIRE) -- Dril-Quip Inc. (DRQ), (the “Company” or “Dril-Quip”) said today that it was withdrawing its first quarter 2020 guidance provided in its year-end 2019 earnings release and conference call in late February. This is in response to the current market uncertainty caused by COVID-19 disruptions, as well as the supply and demand pressures impacting the oil and gas industry.
Blake DeBerry, Dril-Quip's President and Chief Executive Officer, commented, “We continue to monitor the slowdown in worldwide business activity due to the global response to COVID-19. In response to the COVID-19 outbreak and for the wellbeing of our customers, employees and vendors, we have implemented our business continuity plan, which includes staggered shifts in our manufacturing and after market operations, working from home where practical, self-quarantine of offshore service personnel on return and cancellation of all non-essential travel.”
“The sudden and sharp decline in oil prices has forced our customers to reconsider their capital spending plans for 2020. These actions have occurred swiftly since our recent earnings release and conference call, and there remains a high degree of uncertainty in our industry as to the future direction of oil prices and related capital investment. As a result, we have withdrawn our first quarter 2020 guidance and look to manage through this volatile market as we have successfully done in the past.”
“As we look to the future, we believe Dril-Quip is well-positioned to weather this downturn. We took transformational steps in 2019 to restructure our business that allows us to operate more efficiently, with a smaller overall footprint and a lower cost structure. Our cash position is very strong at over $399 million at year-end 2019, and our balance sheet remains debt-free. We will continue to look at ways to reduce costs, including thoughtfully reevaluating our capital expenditures and re-prioritizing R&D, improve performance and execute operationally until there is better line of sight on global oil demand and the ultimate impact of the Coronavirus.”
Dril-Quip is a leading manufacturer of highly engineered drilling and production equipment for use onshore and offshore, which is particularly well suited for use in deep-water, harsh environments and severe service applications.
Statements contained herein relating to future operations and financial results that are forward-looking statements, including those related to market conditions, anticipated changes to the capital programs of our customers, anticipated costs, cost synergies and savings, and expectations regarding operating results, are based upon certain assumptions and analyses made by the management of the Company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors. These statements are subject to risks beyond the Company’s control, including, but not limited to, the volatility of oil and natural gas prices and cyclicality of the oil and gas industry, project terminations, suspensions or scope adjustments to contracts, uncertainties regarding the effects of new governmental regulations, the Company’s international operations, operating risks, and other factors detailed in the Company’s public filings with the SEC. Investors are cautioned that any such statements are not guarantees of future performance and actual outcomes may vary materially from those indicated.
SOURCE: Dril-Quip, Inc.
Raj Kumar, Vice President Finance and Chief Accounting Officer, (713) 939-7711