HARTFORD, Conn. (AP) ¿ WSP Holdings Inc., a Chinese manufacturer of oil and natural gas exploration and drilling products, posted a third-quarter loss ¿ its first ¿ on lower demand and prices due to the global recession.
Shares plunged in afternoon trading.
The company, based in Wuxi, China, said it lost $11.7 million, or 11 cents per American depository share, down from a profit of $29.8 million, or 29 cents per ADS, in the same quarter last year.
Revenue for the quarter ended Sept. 30 was $90.2 million, down two-thirds from $282.4 million in the year-ago period.WSP Holdings said the results reflect significantly lower demand and reduced prices for its products "in light of the challenging environment in international and domestic markets." Sales to U.S. markets rose slightly following the opening of a new Houston inspection line in September, the company said. But sales to other international markets declined during the quarter. In addition, in response to recent trade disputes, many Chinese manufacturers of the pipe product known as oil country tubular goods sharply reduced shipments to the U.S. and increased domestic sales efforts, resulting in excess supply, WSP Holdings said. Due to lower drilling, sales volume declined about 51 percent, resulting in the first quarterly loss in WSP Holdings' operating history, the company said. Shares fell 95 cents, or 22 percent, to $3.42 in afternoon trading.