HOUSTON, April 16, 2019 (GLOBE NEWSWIRE) -- Dril-Quip, Inc. (NYSE:DRQ) today announced that it had product bookings in the first quarter of 2019 of approximately $99 million, which exceeded its prior guidance of $80 million. Included in the first quarter 2019 bookings was a previously disclosed order from a customer to supply subsea wellhead systems valued at between $25 - $35 million and an order from another major customer to convert its inventory of subsea wellhead systems into Dril-Quip's new BigBore IIeTM wellhead system.
The order to supply subsea wellhead systems valued at between $25 - $35 million is for BP and delivery of these systems is expected to begin in the fourth quarter of 2019 and continue into the first half of 2021. This order is placed under the Global Agreement between BP and Dril-Quip for supply of equipment and services, established in 2013 and recently extended until 2023.
Dril-Quip's President and Chief Executive Officer Blake DeBerry commented, "We are pleased to receive this order from BP and believe that it is another positive indicator of an upturn in global offshore activity. BP is an important long-standing customer for Dril-Quip and we are very excited that the extended Global Agreement includes optionality for BP to order our new BigBore IIeTM wellhead system, which is part of our new technology efforts to provide structural changes in well operations that allow our customers to reduce equipment and rig time. The BigBore IIeTM includes an integral two million pound high-capacity casing hanger lockdown that eliminates the need for drilling/production lockdown equipment and can eliminate up to five trips into the well. Dril-Quip looks forward to continuing our successful relationship with BP as we deliver under this order."
Dril-Quip's backlog at the end of the first quarter grew to $304 million, which includes the previously announced contract award to supply top tensioned riser (TTR) systems and related services for the development of the Ca Rong Do Project located offshore Vietnam operated by Repsol. Dril-Quip recently entered into an amendment with Repsol to extend that letter of award until December 31, 2019. The Company did not include this project in its 2019 revenue guidance provided in its fourth quarter 2018 earnings release and does not expect this project to impact its 2019 revenue due to the continued delays in the project.
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.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the provision of equipment and services, the estimated value of the order to supply subsea wellhead systems and the expected timing of delivery of such systems, and the performance and benefits of the Company's products. 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, decisions made by the Company's customers and suppliers, operating risks, and other factors detailed in the Company's public filings with the Securities and Exchange Commission. Certain material factors that could cause the Company's actual results to differ from those contemplated in this press release include, but are not limited to, the Company's ability to successfully manufacture and deliver, and the customer's acceptance of, the products ordered. 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
Raj Kumar, Vice President - Finance, (713) 939-7711
Source: Dril-Quip, Inc.