Net income for the second quarter of 2011 was reported at $747 million, vs. 483 million in the first quarter prior year. Consolidated revenue improved to $5.9 billion from $4.4 billion in the same quarter last year. Operating income increased to $1.2 billion from $762 million in the June quarter of 2010 on the improving pricing environment and higher equipment utilization.
On the geographies that delivered strong performance, Dave Lesar, the company's CEO, said, "North America revenue grew by 16% sequentially compared to United States rig activity growth of 6%, with incremental operating margins of greater than 50% for both divisions. International revenue grew 8% from the prior quarter, with 18% operating income growth, excluding the impact of Libya and employee separation costs. Strong sequential operating income improvement was driven by seasonal recovery in the North Sea and Russia as well as improved activity in Latin America and Asia."At the end of the quarter, cash balance was $1.4 billion. With analysts' buy ratings of 92% and upside potential of 68%, the stock looks a good bet over the next one year. It is trading at 12.8 times its estimated 2011 earnings.