WSP Holdings Ltd. (WH) - 500 Beiträge pro Seite

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WSP Holdings Ltd.


About WSP Holdings Limited:

WSP Holdings develops and manufactures seamless Oil Country Tubular Goods (OCTG), including seamless casing, tubing and drill pipes used for on-shore and off-shore oil and gas exploration, drilling and extraction. Founded as WSP China in 1999, the Company offers a wide range of API and non-API seamless OCTG products, including products that are used in extreme drilling and extraction conditions, other pipes and connectors. The Company\'s products are used in China\'s major oilfields and are exported to oil producing regions throughout the world. The Company\'s website is: http://www.wsphl.com/.

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WSP Holdings Announces Fourth Quarter and Full Year 2007 Results
Tuesday March 25, 7:30 am ET

WUXI, China, March 25 /Xinhua-PRNewswire-FirstCall/ -- WSP Holdings Limited (NYSE: WH - News; "WSP Holdings" or the "Company"), a leading Chinese manufacturer of API (American Petroleum Institute) and non-API certified seamless casing, tubing and drill pipes used in oil and natural gas exploration, drilling and extraction ("Oil Country Tubular Goods" or "OCTG") and other pipes and connectors, today announced its unaudited financial results for its fourth quarter and fiscal year ended December 31, 2007.

Fourth Quarter 2007 Highlights
-- Net revenue was $129.9 million, an increase of 18.2% year-over-year
from the fourth quarter of 2006
-- Gross profit was $33.2 million, an increase of 33.8% from the fourth
quarter of 2006
-- Gross profit margin was 25.6%, up from 22.6% in the fourth quarter of
2006
-- Income from operations was $23.0 million, an increase of 11.4% from the
fourth quarter of 2006
-- Net income was $16.7 million, up 6.5% from $15.7 million in the fourth
quarter of 2006
-- Successfully completed an initial public offering that generated
approximately $212.5 million in gross proceeds, before deduction of
underwriting discounts and commissions and offering expenses
-- Non-API (American Petroleum Institute) product sales revenue increased
137.2% year-over-year from the fourth quarter of 2006
-- Drill pipe production capacity was expanded from 12,000 tonnes to
24,000 tonnes per year in December 2007

Full Year 2007 Highlights
-- Net revenue was $483.8 million, an increase of 32.0% from 2006
-- Gross profit was $125.8 million, an increase of 47.4% from 2006
-- Gross profit margin was 26.0%, up from 23.3% in 2006
-- Income from operations was $103.6 million, an increase of 46.0% from
2006
-- Net income was $74.6 million, an increase of 26.6% from 2006
-- Basic and diluted earnings per American Depositary Share ("ADS", each
ADS represents two ordinary shares) were both $0.97 compared to $0.81
in 2006
-- Non-API product sales increased 268.9% from 2006

Fourth Quarter 2007 Results

"This was a very important quarter for WSP Holdings in terms of financial performance and further development of our key business strategies. Increased sales of sophisticated non-API products drove our net revenue growth and improvement in gross margin," said Mr. Longhua Piao, Chairman and CEO of WSP Holdings Limited. "The successful completion of our initial public offering and listing on the New York Stock Exchange were important milestones in our Company's development. The public offering provided us with the capital necessary to expand our manufacturing capacity and begin executing our overseas marketing expansion plans."

WSP Holdings' net revenue in the fourth quarter of 2007 was $129.9 million, an increase of 18.2% year-over-year from $109.8 million in the fourth quarter of 2006. Sales volume in tonnes for the fourth quarter of 2007 increased 11.8% from the fourth quarter of 2006.

The increase in net revenue was the result of selling more higher priced non-API products than API products. Non-API products accounted for 34.4% of the Company's revenues in the fourth quarter of 2007, up from 17.1% in the fourth quarter of 2006. Sales of non-API products were $44.7 million in the fourth quarter of 2007, an increase of 137.2% from sales of $18.8 million in the fourth quarter of 2006. API product sales were $65.6 million in the fourth quarter of 2007, a 20.0% decrease from $82.0 million in the fourth quarter of 2006. Non-API product sales volume was 24,368 tonnes in the fourth quarter of 2007, an increase of 108.6% from 11,680 tonnes sold in the fourth quarter of 2006. API product sales volume was 58,406 tonnes in the fourth quarter of 2007, a 19.7% decrease from 72,693 tonnes sold in the fourth quarter of 2006. Sales of other products, mostly green pipe, were $19.6 million in the fourth quarter of 2007, up 117.8% from $9.0 million in the fourth quarter of 2006.

Gross profit in the fourth quarter of 2007 was $33.2 million, an increase of 33.8% year-over-year from $24.8 million in the fourth quarter of 2006. Gross profit margin was 25.6%, up from 22.6% in the fourth quarter of 2006. Gross margin improved mainly because the Company continued to improve the profitability of its sales mix while increasing output and controlling production costs.

Operating expenses in the fourth quarter of 2007 were $10.1 million, an increase of 107.9% year-over-year from $4.9 million in the fourth quarter of 2006. The increase in fourth quarter of 2007 operating expenses was due to higher general and administrative expenses related to becoming a public company, higher non-API product marketing and sales expenses, and share-based compensation expenses of $0.59 million, which did not occur in the fourth quarter of 2006. General and administrative expenses are expected to increase moderately going forward because of expanding operations, professional fees and share compensation expenses.

Operating income in the fourth quarter of 2007 was $23.0 million, an increase of 11.4% from the fourth quarter of 2006. Operating margin was 17.7% in the fourth quarter of 2007, down 1.1% from 18.8% in the fourth quarter of 2006.

Net interest expense was $2.8 million in the fourth quarter of 2007 compared to $0.8 million in the fourth quarter of 2006. The increase was due to increased short-term and long-term bank loans used for working capital.

Net foreign exchange loss in the fourth quarter was $1.6 million, compared to a loss of $0.2 million in the fourth quarter of 2006.

Net income was $16.7 million in the fourth quarter of 2007, an increase of 6.5% year-over-year from $15.7 million in the fourth quarter of 2006.

Basic and diluted earnings per ADS were both $0.20 for the three months ended December 31, 2007.

Full Year 2007 Results

For the full year 2007, net revenue was $483.8 million, up 32.0% from $366.5 million in 2006. In 2007, the Company focused on higher margin non-API products and exports. Domestic sales to Chinese customers increased by 13.9% from $180.0 million in 2006 to $205.1 million in 2007. Exports increased by 49.4% from $186.5 million in 2006 to $278.7 million in 2007. While revenues from API products fell 3.5% from $299.2 million to $288.6 million, revenues from non-API products grew 268.9% from $41.3 million in 2006 to $152.4 million in 2007.

Gross profit for the full year 2007 was $125.8 million, an increase of 47.3% from $85.4 million in 2006. Gross margin improved to 26.0% in 2007, an increase of 2.7% from 23.3% in 2006. Income from operations for 2007 was $103.6 million, up 46.0% from $70.9 million in 2006. Operating margin was 21.4% in 2007, compared to 19.4% in 2006. Net income for the full year 2007 was $74.6 million, an increase of 26.6% from $58.9 million in 2006. Basic and diluted earnings per ADS were both $0.97 in 2007, compared to $0.81 in 2006.

Financial Condition

As of December 31, 2007, the Company had $300.9 million in cash and cash equivalents and bank balances, up from $79.2 million as of December 31, 2006. This includes approximately $212.5 million in gross proceeds from the Company's initial public offering of 25,000,000 ADSs, before deduction of underwriting discounts and commissions and offering expenses.

Working capital was $203.0 million as of December 31, 2007. Total shareholders' equity was $341.1 million, up from $96.2 million as of December 31, 2006.

Outlook for 2008

WSP Holdings expects to generate net revenue between $110 million and $130 million in the first quarter of 2008, and net income in a range of $14 million to $17 million.

For the full year 2008, the Company estimates net revenues to be in a range of $600 million to $700 million, and net income in a range of $80 million to $95 million. These estimates are based on the Company's existing manufacturing capacity and expectations for continuing geographic expansion in domestic and international markets for its non-API, API and other product sales.

Recent Developments

In January 2008, WSP Holdings' subsidiary Wuxi Seamless Oil Pipes Company Limited ("WSP China") was awarded "AAA" grade supplier certification by Daqing Oilfield Materials and Equipment Group, which procures production materials and equipment for Daqing Oilfield Company Limited ("Daqing Oilfield"), a subsidiary of PetroChina Company Limited, the largest oil and natural gas producer in China. This certification means WSP China's products and services meet the high standards set by Daqing Oilfield for suppliers.

In January 2008, China Petroleum & Chemical Corporation Northwest Oilfield Branch ("SINOPEC Northwest") placed an initial order for 3,700 tonnes of non- API products from WSP China for delivery in 2008 after WSP China's casing and tubing passed SINOPEC Northwest's three trial wells test, an industry standard test for new products. The Company also signed an agreement with PetroChina Tarim Oilfield Company, a subsidiary of PetroChina Company Limited, for testing the Company's non-API products in a separate three trial wells test.

In February 2008, the Company was informed by the Canada Border Services Agency ("CBSA") of its final determination regarding its investigation into dumping and subsidization of certain oil and gas well casings exported to Canada from China. The final determination imposed anti-dumping and countervailing duties on the Company's products imported into Canada subsequent to CBSA's initial determination in November 2007. In March 2008, the Canadian International Trade Tribunal did not find present material injury, instead reached a conclusion that the domestic industry is threatened with injury by future imports. Therefore, any anti-dumping and countervailing duties paid by the importers on exports by the Company of oil and gas well casing from China subsequent to November 2007 will be refunded to importers. The Company did not make any sales to Canada in 2008, and so was not affected by CBSA's determination. Moreover, should the Company seek to sell products into Canada in the future, the Company plans to comply with price guidance provided by the CBSA.

In March 2008, the Company's subsidiary, Jiangsu Fanli Pipe Co., Ltd. ("Jiangsu Fanli"), obtained a manufacturing license to produce high-quality non-API seamless pressure pipes used in boiler manufacturing. With this manufacturing license, Jiangsu Fanli can immediately start producing seamless pressure pipes.

In March 2008, the Board appointed Mr. Anthony J. Walton, an independent director, to serve on the Company's Audit Committee.

WSP Holdings plans on expanding its production capacity in China. The Company's plans call for developing a manufacturing plant in Liaoyang, Liaoning province for hot rolling, threading and heat treatment lines. The Company also plans to set up a threading line with a planned capacity of 60,000 tonnes in Songyuan, Jilin province.

"In 2008, we will continue to expand both our domestic and international manufacturing and sales capabilities. We are pursuing opening representative offices in key markets and continue to expand direct sales to international customers, along with China's oil and gas companies that are expanding into international markets. We will continue to focus on research and development to broaden our product offerings, especially with respect to non-API products, and improve the quality of our existing products," Mr. Longhua Piao concluded.


6-K Filing:http://secfilings.nasdaq.com/filingFrameset.asp?FileName=000…

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WSP Holdings Gets New Purchase Order from SINOPEC Northwest
Friday April 18, 7:00 am ET

WUXI, China, April 18 /Xinhua-PRNewswire-FirstCall/ -- WSP Holdings Limited (NYSE: WH - News; ''WSP Holdings'' or ''the Company''), a leading Chinese manufacturer of API (American Petroleum Institute) and non-API seamless casing, tubing and drill pipes used in oil and natural gas exploration, drilling and extraction (''Oil Country Tubular Goods'' or ''OCTG''), and other pipes and connectors, today announced that it recently received a new purchase order for 5,300 tonnes of the Company's non-API products from China Petroleum & Chemical Corporation Northwest Oilfield Branch (''SINOPEC Northwest'').

In March 2008, WSP Holdings signed a purchase agreement with SINOPEC Northwest through which the Company will sell 5,300 tonnes of non-API casing pipe to SINOPEC Northwest. Most of the order is for casing pipe that is specially manufactured to prevent corrosion from hydrogen sulfide (H2S). This anti-H2S corrosion pipe is more technology-intensive to manufacture than ordinary pipe. WSP Holdings expects to complete delivery by May 2008.

SINOPEC Northwest operates some of the deepest oil and gas wells in China. These wells are subject to corrosive conditions and can be saturated with H2S. The Company's anti-H2S corrosion casing pipe meets SINOPEC Northwest quality standards, and is a substitute for SINOPEC Northwest's usual purchases from overseas. SINOPEC Northwest previously placed an purchase order for 3,700 tonnes of non-API products from WSP Holdings earlier this year.

''The successful sale of our products for use in extreme conditions to SINOPEC shows that our products are competitive with those produced by international manufacturers. This new order represents our further penetration into the Xinjiang province market, and expands our non-API market share in China. We believe this purchase agreement will lead to further sales of our high quality non-API products to SINOPEC Northwest and other oil and gas exploration companies,'' said Mr. Longhua Piao, Chairman and CEO of WSP Holdings.

[benefactor [KommA]]

WSP Holdings Reports First Quarter 2008 Results
Thursday May 15, 7:00 am ET

WUXI, China, May 15 /Xinhua-PRNewswire-FirstCall/ -- WSP Holdings Limited (NYSE: WH - News; ''WSP Holdings'' or the ''Company''), a leading Chinese manufacturer of API (American Petroleum Institute) and non-API certified seamless casing, tubing and drill pipes used in oil and natural gas exploration, drilling and extraction (''Oil Country Tubular Goods'' or ''OCTG''), and other pipes and connectors, today announced its unaudited financial results for the quarter ended March 31, 2008.

Highlights and Recent Development
-- Net revenue was $131.2 million, an increase of 31.6% from the first
quarter of 2007
-- Gross profit was $32.0 million, an increase of 25.3% from the first
quarter of 2007
-- Gross profit margin was 24.4%, compared to 25.6% in the first quarter
of 2007
-- Income from operations was $25.1 million, an increase of 10.6% from the
first quarter of 2007
-- Net income was $15.8 million, down 1.1% from $16.0 million in the first
quarter of 2007
-- Non-API product sales revenue increased 90.2% from the first quarter of
2007
-- A new purchase order for 5,300 tonnes of non-API products was received
from China Petroleum & Chemical Corporation Northwest Oilfield Branch
(''SINOPEC Northwest'')
-- Major investments were made in Liaoyang and Songyuan to expand
manufacturing capacity

First Quarter 2008 Results

''This quarter was a good start to 2008 in terms of an overall increase in sales of non-API products both in absolute dollars and as a percentage of net sales, because we continued to optimize sales mix by focusing on producing higher quality non-API products, which offset an increase in raw materials costs,'' said Mr. Longhua Piao, Chairman and CEO of WSP Holdings. ''We also began using proceeds from our recent public offering to expand our manufacturing capacity in China and our overseas sales and marketing network.''

WSP Holdings' net revenue in the first quarter of 2008 was $131.2 million, an increase of 31.6% from $99.7 million in the first quarter of 2007. Sales volume was 95,024 tonnes for the first quarter of 2008, up 12.6% from 84,354 tonnes in the first quarter of 2007.

Net revenue increased as a result of increase in OCTG product sales volume and higher selling prices for both non-API and API products. Non-API products accounted for 42.9% of the Company's net revenues in the first quarter of 2008, compared to 29.7% in the first quarter of 2007. Sales of non-API products were $56.3 million in the first quarter of 2008, an increase of 90.2% from sales of $29.6 million in the first quarter of 2007. API product sales were $59.5 million in the first quarter of 2008, a 10.5% decrease from sales of $66.4 million in the first quarter of 2007. Non-API product sales volume was 31,948 tonnes in the first quarter of 2008, an increase of 73.5% from 18,410 tonnes sold in the first quarter of 2007. API product sales volume was 46,883 tonnes in the first quarter of 2008, a 23.5% decrease from 61,325 tonnes sold in the first quarter of 2007. Sales of other products, mostly green pipes, were $15.4 million in the first quarter of 2008, up 326.3% from $3.6 million in the first quarter of 2007.

Gross profit in the first quarter of 2008 was $32.0 million, an increase of 25.3% from $25.6 million in the first quarter of 2007. Gross profit margin was 24.4%, compared to 25.6% in the first quarter of 2007. Gross margin decreased slightly mainly because of higher production costs due to higher raw material prices, which were offset by the stronger profitability from optimized sales mix in the first quarter of 2008.

Operating expenses in the first quarter of 2008 were $7.2 million, an increase of 125.1% from $3.2 million in the first quarter of 2007. The increase in first quarter of 2008 operating expenses was due to higher general and administrative expenses related to the increase in operating scale, higher non-API product marketing and sales expenses, and share-based compensation expenses of $0.6 million, which did not occur in the first quarter of 2007.

Income from operations in the first quarter of 2008 was $25.1 million, an increase of 10.6% from the first quarter of 2007. Operating margin was 19.1% in the first quarter of 2008, compared to 22.8% in the first quarter of 2007.

Net interest expense was $1.5 million in the first quarter of 2008 compared to $2.4 million in the first quarter of 2007. This decrease was due to an increase in interest income earned from the proceeds generated from the Company's initial public offering.

Net foreign exchange loss in the first quarter of 2008 was $1.6 million due to the depreciation of the US dollar against China's Renminbi and increased sales to overseas customers, which were denominated in U.S. dollars.

The income tax expenses increased in the first quarter of 2008 as a result of unification of income tax rate of 25% since January 1, 2008 as compared to income tax rate of 15% in corresponding period of last year, as well as deferred tax relating to withholding tax on certain unremitted dividend from subsidiaries in the P.R. China.

Net income was $15.8 million in the first quarter of 2008, a decrease of 1.1% from $16.0 million in the first quarter of 2007.

Basic and diluted earnings per ADS were both $0.15 for the first quarter of 2008, compared to both $0.21 for the first quarter of 2007.

Financial Condition

As of March 31, 2008, the Company had $270.6 million in cash and cash equivalents, down from $300.9 million as of December 31, 2007. The Company had an increase in inventory mainly due to the stock up of raw materials and increased work in progress semi-products, and the increase in overall operations also led to a proportionate increase in accounts receivable.

Working capital was $245.0 million as of March 31, 2008. Total shareholders' equity was $387.1 million as of March 31, 2008, up from $341.1 million as of December 31, 2007.

Recent Developments

In March 2008, WSP Holdings received a new purchase order for 5,300 tonnes of the Company's non-API products from SINOPEC Northwest.

In April 2008, one of WSP Holdings' wholly-owned subsidiaries, First Space Holdings Limited set up a 70%-owned subsidiary, Liaoyang Seamless Oil Pipes Company Limited (''Liaoyang Seamless''), a company with $40 million initial registered capital located in Liaoyang, Liaoning province. Liaoyang Seamless will construct a manufacturing facility with hot-rolling OCTG pipe production capacity of about 300,000 tonnes per year, pipe finishing capacity of about 150,000 tonnes per year, and pipe heat treatment processing capacity of about 100,000 tonnes per year.

In April 2008, one of WSP Holdings' wholly-owned subsidiaries, Wuxi Seamless Oil Pipes Company Limited, established Songyuan Seamless Oil Pipes Company Limited (''Songyuan Seamless'') with $6 million initial registered capital in Songyuan, Jilin province. Songyuan Seamless commenced construction of a manufacturing facility with pipe finishing capacity of about 60,000 tonnes per year.

''Our overall non-API products business grew in this quarter and we achieved greater market penetration into Xinjiang province because we received large non-API purchase orders from oilfields located there. We made major investments to expand our hot-rolling production and pipe finishing capacities in Northern China. We expect to increase our domestic market shares for a number of products and improve our post-sales services in the Chinese OCTG market. We are planning to develop manufacturing facilities and expand sales of our OCTG products in the United States to further enhance our presence in the North American market,'' Mr. Longhua Piao concluded.

Conference Call

WSP Holdings' management will host a conference call at 9:00 a.m. Eastern Time on Thursday, May 15, 2008 to discuss results for the quarter ended March 31, 2008. To participate in this live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: [phone]. International callers should call [phone]. The Conference Pass Code is 54309212.

A replay of the conference call will be available from 11:00 a.m. Eastern Time on Thursday, May 15 to Thursday, May 22, 2008. To access the replay, call [phone]. International callers should call [phone]. The Conference Pass Code is 80237448.

This conference call will also be broadcast live over the Internet and can be accessed by all interested parties on WSP Holdings' website: http://www.wsphl.com/ . To listen to the live webcast, please go to WSP Holdings' website at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on WSP Holdings' website for 90 days.

About WSP Holdings Limited

WSP Holdings develops and manufactures seamless Oil Country Tubular Goods (OCTG), including seamless casing, tubing and drill pipes used for on-shore and off-shore oil and gas exploration, drilling and extraction, and other pipes and connectors. Founded as WSP China in 1999, the Company offers a wide range of API and non-API seamless OCTG products, including products that are used in extreme drilling and extraction conditions. The Company's products are used in China's major oilfields and are exported to oil producing regions throughout the world. The Company's website is: http://www.wsphl.com .