With respect to the TNK put we amended at during Q2, extending the expiration date to December 1 and increasing the strike price by $1 to $19.50. These two changes increased the fair value of the put by approximately $20 million. The remaining amount of the charge reflects the $2.72 per share decline in our stock price during the quarter.Following the Q2 charge, the puts recorded as $152 million liability on our balance sheet, to the extent that we settle the put and our share prices increased, the liability will be reduced, positively impacting the income statement. On the cash side, there will be no cash impact to the balance sheet if the put settled at or above the 1950 strike price. Of the aforesaid sequential step up, the field contributed $0.05 and below the line items took away a penny, North America is to credit for $0.02 of the operational uptake. Well international markets added $0.03. On a consolidated basis, revenue increased a $100 million sequentially or 4%; an advanced $443 million or 22% compared to the same quarter last year. North America revenue climbed 3% sequentially, stronger than expected performance in the US land market more than offset Canada’s traditional seasonal decline as well as one month of severely reduced activity in the Gulf of Mexico. Compared to last year’s quarter, revenue is up $350 million or 61%. The Canadian breakup season was more benign than the past few years albeit heavy rains in parts of Alberta and Saskatchewan adversely impacted the quarter. Recall that Canada accounted for approximately 30% of our North American revenue in Q1. Moving into the second half of the year, we expect our Canadian operations to continue to benefit from a curb down of our internal cost structure as well as a seasonal rebound in activity levels. Looking at the US market, unconventional gas, oil directed drilling and liquid rich plates continue to pull strong growth. And operators are looking to lockup capacity on a number of products and services where utilization remains tight.
Eastern hemisphere revenue progressed $87 million sequentially or 9% compared to a 3% increase in rig count, compared to Q2 ‘09 revenue expanded $149 million or 16%. Russia, Iraq and China were the strongest incremental contributors. By product line top performers included artificial lift, drilling services; which is both direction of drilling and under balanced, stimulation in chemicals, well Construction and wireline.In Latin America revenue retreated 4% for $18 million on a sequential basis is down 12% or $55 million compared to Q2 ‘09. The sequential decline in revenue is the result of reduced project activity in Mexico, healthy increases in Argentina, Brazil and Colombia help to offset the drop in Mexico, activity levels in Mexico were significantly reduced versus prior quarters, on average we operated 10 strings versus  strings in the year ago quarter. In Brazil, we continued to win new awards and tender activity remains robust. Colombia continues to ramp up, Ecopetrol recently announced plans to spend $80 billion by 2020 to boost annual oil production. On the operating income side consolidated EBIT before corporate and R&D was $308 million up $43 million sequentially. Operating margins were 12.6%, a 130 basis point improvement over Q1. Compared to Q2 ‘09 consolidated EBIT before corporate and R&D is up $37 million or 14%. In North America, operating income of $129 million stepped up 15% sequentially; margins climb to 140 basis points and at 14%. You recall that North America ran at breakeven in the second quarter of ‘09, increased onshore activity in the US, prior cost reduction efforts, improved fixed cost absorption and a more favorable sales mix and pricing gains and so that product lines will be upturned. The Gulf’s deep water moratorium was most apparent in June dragging down the regions operating income results by $9 million to $10 million for the month, Eastern Hemisphere operating income was up $20 million sequentially with margins up 80 basis points to 12.7%. Performance of the two eastern regions diverge considerably. Europe, West Africa, FSU logged a 400 basis point margin improvement with more robust activity and utilization seasonally. Middle East, Asia Pac margin slid a 170 basis points and the seasonal recovery in Asia Pacific cannot offset the negative impact of higher mobilization cost and less favorable mix. Latin America profitability increased $7 million and margins expanded 200 basis points to 9.3%. The reduction in Mexico passed through revenue as well as strong performances in Argentina, Brazil and Columbia supported the margin expansion. Read the rest of this transcript for free on seekingalpha.com