DRQ - Dril-Quip Inc. Announces Termination of Contract Award for Ca Rong Do Project
HOUSTON, Sept. 16, 2019 (GLOBE NEWSWIRE) -- Dril-Quip, Inc. (NYSE: DRQ) today announced that the contract award between its subsidiary Dril-Quip Asia Pacific Pte Ltd. and Repsol for the supply of drilling Top Tensioned Riser (TTR) systems for the Ca Rong Do (CRD) project located offshore Vietnam has been terminated. The contract was awarded in February 2018 and was last extended until December 31, 2019 but had been subject to continued delays of the CRD project. With this termination, the CRD contract value of approximately $82 million will be removed from the Company’s backlog.
Blake DeBerry, Dril-Quip's President and Chief Executive Officer, commented, "While we are disappointed with this outcome, CRD was not included in our prior 2019 revenue guidance due to the overall uncertainty surrounding the project. We remain confident in our ability to achieve our previously announced guidance of $75 to $95 million of product bookings and $100 to $110 million of revenue per quarter for the remainder of 2019, and we continue to focus our efforts on growing our bookings and backlog while effectively executing to best serve our customers.”
As a result of the CRD contract award termination and the Company’s recently announced forge operations transaction, the Company has updated and posted a new investor presentation entitled “September Investor Presentation” to its website, www.dril-quip.com, on the “Events & Presentations” page under the Investors tab. Investors should note that Dril-Quip announces material financial information in SEC filings, press releases and public conference calls. Dril-Quip may use the Investors section of its website (www.dril-quip.com) to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information.
About Dril-Quip
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.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to market conditions, anticipated bookings, anticipated revenues and expectations regarding operating results. Forward-looking statements are based upon certain assumptions and analyses made by 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, operating risks, decisions by other parties to terminate agreements and other factors detailed in the Company’s public filings with the Securities and Exchange Commission. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and actual outcomes may vary materially from those indicated.
Investor Relations Contact
Trevor Ashurst (713) 939-7711