Oil field products manufacturer Lone Star Technologies Inc. posted a 6.2% increase in first-quarter profits. Net income for first-quarter 2006 was $41.3 million, or $1.33 per share, compared with $38.9 million, or $1.30 per share, a year earlier.
Total revenues rose 4% to $350.9 million from fourth-quarter 2005, partly driven by a 13% increase in oilfield shipment volumes. Shipment volumes grew from a 7% increase in active drilling rigs. Revenues from specialty tubing decreased 3% from fourth-quarter 2005 to $43.6 million due to a 7% decrease on average selling prices and a 4% increase of shipment volumes.
"Our first-quarter performance reflects the continued strength in demand we are experiencing for our premium oilfield products," said Rhys Best, Lone Star's chairman and CEO, in an April 25 statement. "Given industry projections of continued expansion in unconventional land-based gas drilling as well as expected improvement in Gulf of Mexico activity in the second half of the year, we anticipate that strong customer demand for our key products will continue."
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