Advertisement

Oil States International rebounds after Hurricane Harvey

The company returns to profit after one of its facilities was knocked out of service after last year's hurricane season targeted the Houston area.

By
Daniel J. Graeber
An aerial view of the flooding caused by Hurricane Harvey in Houston, Texas, on August 31, 2017. Hit financially by the storm last year, Oil States International reports strong profits for the second quarter. Photo by Staff Sgt. Daniel J. Martinez/Air National Guard/UPI
An aerial view of the flooding caused by Hurricane Harvey in Houston, Texas, on August 31, 2017. Hit financially by the storm last year, Oil States International reports strong profits for the second quarter. Photo by Staff Sgt. Daniel J. Martinez/Air National Guard/UPI | License Photo

July 30 (UPI) -- One of the U.S. energy companies hit financially by Hurricane Harvey last year, Oil States International reported hefty profits for the second quarter.

Oil States International, which has its headquarters in Houston, reported net income for the second quarter of $2.7 million, compared with a net loss of $14.2 million in the same period last year. Its net loss in the third quarter was $15 million, which the company attributed to damage from Hurricane Harvey.

Advertisement

The company operates five manufacturing facilities in the Houston area. One of those facilities was knocked out of service after Harvey dumped close to five feet of rain in the region.

A report from Goldman Sachs found that flooding from Hurricane Harvey was the greatest threat to energy infrastructure in the region. Elsewhere, Oil States warned last year the investor push inland toward U.S. shale basins meant lower demand for products for deepwater drilling.

RELATED Harvey didn't derail Houston's economy

Oil States closed on the acquisition of GEODynamics, an oilfield services company, and Falcon Flowback Services, a company working on hydraulic fracturing operations, in the first quarter.

"This vast improvement in our results was due to strong contributions from our two strategic acquisitions completed in the first quarter of this year, coupled with improved land completions activity in our key shale play regions," President and CEO Cindy B. Taylor said in a statement.

Advertisement

The company said its well services segment saw an 80 percent increase in revenue, which it attributed to a 63 percent increase in jobs performed compared with last year.

RELATED Texas looks to port overhaul to keep pace with oil and gas exports

Oil States was not alone in reporting a financial impact from Harvey. Encana Corp. said in the wake of Harvey that the storm sidelined about 3,500 barrels of oil equivalent per day from the Eagle Ford and Permian basin. That's less than 1 percent of the combined oil production in the forecast from the U.S. Energy Information Administration, though that loss is from just one company.

RELATED Colorado, Harvey resistance, leads to good quarter for Noble Energy

Latest Headlines