T-3 Energy Services Q1 2009 Earnings Call Transcript

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2009-05-01 10:45:33.0

Tags: Offshore, Call Transcript, Earnings, Outsourcing, It Operations, Business Operations, Outsourcing & Subcontracting, Seeking Alpha, T-3 Energy Services Inc.

Question-and-Answer Session

Operator

Thank you. The question-and-answer session will be conducted electronically. (Operator Instructions). We'll go first to Collin Gerry with Raymond James.

Collin Gerry - Raymond James

Hey, good morning.

Steven Krablin

Good morning.

James Mitchell

Good morning Collin.

Collin Gerry - Raymond James

Well, Jay thanks for all the detail. My fingers is going to hurt from typing as fast I could. There was some numbers you went you through pretty fast. Could you give us the revenue per business unit on the pressure control both with that breakout, the pressure control, wellhead and pipeline.

James Mitchell

Sure. The sales for PCG were 49.9 million, wellhead was 8.6 million and the pipeline was 4.3 million.

Collin Gerry - Raymond James

Okay, perfect. Okay. So, going back to some of the issues you kind of mentioned, we're seeing the economy obviously fall like a rock here. Are you all getting any kind of shift in the customer orders from, say, new capital equipment and going back to the remanufacturing business. Can you see that as people bring rigs in the yard and they need some work, but its been working for five years straight and they need some work to be done or CapEx budgets is just going down uniformly.

James Mitchell

I think for the most part the CapEx budgets are going down. I don't think we've seen a big pickup at this point in the repair and maintenance side. It is there, but it probably hasn't really kicked back in on that front yet. And, its one of the things that its easy for the drilling contractors to defer initially and as they get a handle on where the business is headed, they'll come back and do some of that later on. Even before the rig goes back to work, they'll start prepping up some of this equipment. But for right now that's a weak area as well.

Collin Gerry - Raymond James

Okay. And then switching gears a little bit. You mentioned how your offshore part of the business is growing. I think it maybe about a year ago you won the $12 million jack-up award of the two packages in West Africa. I guess, first, have you delivered on those packages or are those still earning revenue. And I think at that time there was six possible orders in the queue. Have any of those materialized or kind of what's the status, generally speaking, offshore.

 

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