Houston & Kemah, Texas, Nov. 15, 2011 (GLOBE NEWSWIRE) -- Delta Seaboard International, Inc. (OTCBB: HMDI)
Delta reported strong growth in revenues of $517,419, or 21.3%, to $2,941,919 for the third quarter, compared to revenues of $2,424,500 during the same period in the prior year. Our revenues from rig services increased by $551,994, or 73%, to $1,306,530, compared to $754,536 during the third quarter in 2010. Rig service revenues increased due to two fully operating rigs which rigs were in major maintenance during 2010. Pipe sales decreased by $34,575, or 2%, to $1,635,389 in the third quarter 2011, compared to pipe sales of $1,669,964 during the same period in the prior year. Due to a substantial increase in oil prices, drilling activities have significantly increased during the nine months ended September 30, 2011, compared to the same period in the prior year.
Our operating expenses increased by $531,782, or 22%, to $2,889,411 during for the three months ended September 30, 2011, compared to operating expenses of $2,357,629 for the three months ended September 30, 2010. Operating expenses mainly increased due to higher rig service.
Delta’s net income was up 27%, or $11,514, in the third quarter compared to a net income in the third quarter 2010. The company generated $155,023 cash flow from operations during the third quarter ended September 30, 2011.
"Delta’s strong third quarter results are the continuation of the momentum we’ve seen in the oil and gas industry," said Delta’s Chairman and CEO Daniel Dror. "Our third quarter strong sales growth reflects a particularly robust up-cycle, with growth in both rig services and pipe sales. Despite signals of slower growth forecast in the economy, we expect additional revenue growth and our businesses to perform well in the fourth quarter."
For more detailed information, please refer to our September 30, 2011 Form 10-Q filing with the SEC, which was filed on November 14, 2011.
Forward-Looking Statements:
This press release may contain forward-looking statements, including information about management’s view of the Company’s future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the "Act"). All statements other than statements of historical information provided herein may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects" and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those that we may anticipate reflected by our subsidiaries' operations include without limitations, growth in the energy sector and in the oil and gas service industry, increased levels of competition, new products and technology changes, and the market for pipes, the rules of regulatory authorities and risks associated with any potential acquisitions. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof. Finally, the Company undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.