Lone Star reports sharply higher earnings

Lone Star reports sharply higher earnings

Lone Star Technologies Inc., a Dallas, Texas company that produces casing, tubing, line pipe and couplings for the oil and gas industry, reported its net earnings rose 49 percent due in large to higher oil country tubular goods prices and shipment volumes. Net revenue rose to $325.7 million for the second quarter 2005, a year-on-year increase of $79.5 million. Year-to-date net revenue was reported as $623.5 million, a 68 percent increase from same period in 2004. Net income was reported as $63.5 million, or $2.09 per diluted share, compared to $32.2 million, or $1.11 per diluted share, for the second quarter 2004. Year-to-date 2005 net income was $102.4 million while year-to-date 2004 net income was $40.2 million. Rhys J. Best, Lone Star's Chairman and CEO, said, "Our record results reflect continued robust demand for our premium oilfield products. Lone Star remains particularly well-positioned to benefit from the growing demand for alloy grade high strength OCTG.” Mr. Best went on to add, “Continued strong OCTG demand coupled with our targeted cost reduction initiatives provides a positive outlook for the second half of the year." Lone Star Technologies Inc.'s principal operating subsidiaries manufacture, market and provide custom services related to oilfield casing, tubing, couplings, and line pipe, specialty tubing products used in a variety of applications, and flat rolled steel and other tubular products.