Hanover Compressor Co., manufacturer of compressors used in the oil and gas industry, said last week that its second-quarter profits increased to $21.7 million, or 21 cents per share, after a $6.4 million loss in the same period in 2005. The company credited the start of several rental projects, plus stronger fabrication pricing, better operational execution and lower debt costs.
The results include a gain of $8 million, or 7 cents per share, from the sale of Hanoverâ€™s fabrication assets in Canada.
Revenues increased 18 percent year over year to $405.7 million, up from $344.8 in Q205. Revenue from rentals in the United States increased 6 percent because of improved pricing. International rental revenue rose 22 percent, based primarily on increased rentals in Venezuela, Argentina and Nigeria.
Parts, service and used equipment revenue increased about 10 percent, although margins decreased.
â€śWe anticipate the startup of previously awarded rental projects; our fabrication backlog continues to build, and rental and fabrication quote activity remains strong in all of our geographic markets,â€ť said president and CEO John Jackson.
Hanover Compressor Co. is based in Houston.