This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.
“In terms of pricing, we are not seeing any signs of an inflection point. However, the current operating environment with highly competitive pricing on basic services and slow but steady activity growth where we can get a premium for new technology and for the quality of our execution, suits us very well, as it plays to our strengths and allows us to continue to generate superior financial results.”
“In the Middle East, sequential growth was, again, solid in Saudi Arabia and Iraq, while the highest growth rate was seen in the United Arab Emirates and Qatar, where we also have very strong market positions. We are currently in the process of transferring in additional people and equipment to Saudi Arabia to keep pace with the additional work that we are taking on, while the – while in the United Arab Emirates, we have just completed a large mobilization linked to a recent major contract win.
Asia also posted strong sequential results headed up by China, where conventional and tight gas activities on land were the main drivers.”
“we in recent months have seen a number of positive signs in the world economy. The Eurozone is now out of its longest recession on record, the U.S. continues to show favorable trends in spite of the fiscal debate and the most recent data from China suggests a lower risk of a significant slowdown.”
“At this stage, we therefore expect continued support for Brent crude prices around $100 per barrel going into 2014. However, the makeup of the risk premium is likely to shift somewhat with lower supply uncertainty and potentially lower geopolitical risk, offset by more resilient demand and lower macroeconomic concerns.”
“In terms of E&P spend, the second half of this year is unfolding in line with expectations. Visibility of 2014 is still limited, as our customers are in their planning process. but at this stage, we foresee a continuation of the overall trend seen in 2013, which should yield another year of steady activity growth”
“the market dynamics that we play in will continue to see steady activity growth, but competitive basic pricing. But as along as we can get a premium for new technology and the quality of our execution, we are comfortable that we can continue to generate solid incremental margins without a inflection in the pricing.”
“at least for us, I would say that in general it would take us most likely longer to consume the overcapacity we have, unless we gain significant share to the point that we choose to activate some other fleets that we have in the idle asset program as well. But as of now, we are continuing to focus in on the operational efficiencies of the assets we have in operation, and if we can get decent incremental margins on additional work that we potentially take on, we will primarily look to create fleets out of assets currently in operation before we look to the idle asset program.”
“I would say that, our view on 2014 overall in Brazil is that it’s going to be another challenging year. And it’s mainly down to the activity levels that we see at this stage, which is relatively flat from where we stand now. That’s a function of obviously of what Petrobras is planning to do, but also there is some impact in this in lower activity projected for both the Brazilian independents as well as on the IOCs in Brazil in 2014.
2015 is likely to be higher when the exploration work linked to the last license round is likely to kick in, but the majority of the activity in Brazil next year for us is going to be centered around Petrobras who are not looking to significantly grow activity at least from what we can see at this stage.”
“we have a positive view on the market. There were significant growth in deepwater drilling activity in 2011 and we expect the continuation on that trend into 2014.”
“I think we see Arctic as a interesting market and a good opportunity going forward. We are, I think, very well positioned to take part in that in particularly in Russia, we’re already involved in one Arctic project there pre-Ludlum [ph]. At the same time we are also actively pursuing the other projects that are coming up both in, like to say, Greenland as well as other places in Russia and North America and Norway. So in terms of overall impact and activity, I think it’s going to take a bit of time before it becomes really material. But there is a significant potential there that we are going to actively position ourselves to take part in.”