new base special 02 february 2014

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NewBase 02 February 2014 Khaled Al Awadi

NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE

Abu Dhabi fund part of lawsuit against Norway government By Staff Writer , Arabian Business.com

Abu Dhabi is part of a group of investors in Norway's offshore gas pipeline system who have filed

lawsuits against the Oslo government over a plan to reduce tariffs for using the network, a move

which would dramatically reduce the estimated return on investment.

Companies representing several international investment funds, such as the Abu Dhabi Investment Authority, the Canadian Pension Fund and German insurer Allianz, have spent $5.1 billion in recent years acquiring stakes in Norwegian pipelines, then considered a solid investment bet.

The government said at the end of June it would stick to an earlier announced plan to lower the tariffs by 90 percent for new gas contracts, a move it said was intended to encourage higher production in mature fields and exploration in the frontier areas of the Arctic.

However, the move will lower investors return to 4 percent, when the group had projected a minimum return of 7 percent, and result in the income investors’ expected to make dropping by around $6.5bn. Infinity Investments SA, a unit of the Abu Dhabi Investment Authority, is part of the investors in Solveig Gas Norway AS, which owns 24.8 percent of Gassled.

“We’re looking forward to getting this tried in the legal system,” Solveig CEO Trygve Pedersen told Bloomberg by phone this week. The tariff cuts are “without legal foundation and should be declared invalid with any resulting loss compensated,” Solveig added in the statement. Njord Gas Infrastructure AS, which is owned by the UBS International Infrastructure Fund and CDC Infrastructure SA, also filed suits January 16, along with three other investors in the project.

The total length of Norway's gas

pipelines is currently 8,100 kilometres




The investors together hold almost 39 percent of Gassled venture. Norway's state-owned Petoro is the major stakeholder with 45.8 percent. In 2012, Norway overtook Russia to become the European Union's biggest gas supplier, delivering 106 billion cubic metres of gas.

About Gassled

is a partnership to own the offshore natural gas transportation infrastructure on behalf of oil and gas companies operating at Norwegian continental shelf of North Sea. Gassled was created on 20 December 2002 and it became operational on 1 January 2003. Gassled partners are Petoro, Solveig Gas Norway, Njord Gas Infrastructure, Silex Gas Norway, Infragas Norway, Statoil Petroleum, Norsea Gas, ConocoPhillips Scandinavia, DONG E&P Norway, GDF Suez E&P Norway, and RWE Dea Norway. Though Gassled has a board, it has no employees or operations. Its pipelines are operated by Gassco.

Originally, Gassled owned Aasgard Transport, Statpipe, Europipe II, Zeepipe, Franpipe, Oseberg Gas Transport, Vesterled and Norpipe, as also the gas treatment complex at Kårstø, and three receiving terminals at Emden in Germany and one at St Fergus in the United Kingdom. Later, also ownership of the receiving terminals at Zeebrugge in Belgium and Dunkerque in France, Europipe I, Kvitebjoern pipeline, Norne Gas Transport System, Langeled pipeline and terminal, and Kollsnes gas processing plant were merged into Gassled.

About Solveig Gas

Solveig Gas Norway AS is a significant shareholder in Gassled (24.756 %), the infrastructure for transporting

gas from the Norwegian shelf to the European market. In addition Solveig Gas AS holds a 35,25% shareholding

in Norsea Gas as. Our total direct and indirect Gassled ownership is 25,55%. Solveig Gas AS was established in

the summer of 2011 and is based in Stavanger. Our vision is that we will become recognised as the leading, most

competent, and most reliable infrastructure partner.




Solar shines a light on UAE's opportunities Emirates News Agency, WAM

The development of sustainable energy is an important plank of the UAE's future vision, a UAE daily has said.

"Many new buildings - including the twin Al Bahar Towers in the capital and the new Dubai Electricity and Water

Authority (Dewa) office in Al Quoz - have been built with sustainability in mind. Even Mawaqif's parking

machines in Abu Dhabi operate on solar energy. But, until now, that technology's possibilities have not been

fully exploited," the Abu Dhabi based English language 'The National' said in its editorial yesterday.

The paper went on to say private homes and

business premises in Dubai will soon be allowed to

erect their own solar panels to generate their own

electricity, which might also be fed back into the

power grid. This will be enabled under legislation

expected to come into effect in the emirate in the

second half of this year. While the complete

transition to greener homes and businesses will take

time to occur on a large scale, this is certainly an

important step towards a more environmentally

friendly nation.

"If all buildings had even a small amount of solar generation capacity, a huge amount of energy would be saved.

And it doesn't just have to be photovoltaic (PV) panels. Most houses and villas could lower their bills by installing

solar water heaters.

With its abundance of sunlight, the UAE and solar energy would seem to be a natural fit. Indeed, the Shams 1

solar plant in Al Gharbia, Abu Dhabi, is already

generating energy and will eventually have the

capacity to power 20,000 homes. However, it

operates on concentrated solar power technology,

where sunlight is used to heat a liquid and then drive

turbines rather than directly generate electricity as is

the case at the Mohammed bin Rashid Al Maktoum

Solar Park in Dubai that uses PV technology," it

added.

According to the paper, there are technological

hurdles with the use of PV in the Middle East,

because the dust generated in the desert limits their

effectiveness. But, of course, where there is a challenge, there is also an opportunity - and in this case there is

scope for UAE enterprises to lead the way in the nascent industry of producing self-cleaning solar panels.

"With both solar and nuclear energy entering the mix, the UAE is reducing its reliance on carbon-based

electricity generation, delivering on its vision for a sustainable future and exploring technological frontiers," the

paper concluded. –




Chevron suffers 18% profit fall Bill Lehane , http://www.upstreamonline.com/live/article1351002.ece

US supermajor Chevron has reported sharp falls in both quarterly and annual net profit. The San Ramon,

California-headquartered giant said it earned $21.4 billion in 2013, down 18% on the

previous year’s $26.2 billion.

The explorer earned $4.9 billion net in the fourth quarter of 2013, a decrease of 32% on

the year-ago period’s $7.2 billion which had included a $1.4 billion gain on an asset

exchange with Shell in Australia. Chief executive John Watson laid the primary blame

for the drop on lower global crude oil prices and tighter refining margins, while also

citing higher expenses and lower gains on asset sales.

He also hinted at further tough numbers to come, predicting that both Gorgon and Wheatstone LNG would

see peak capital investment in 2014 as they move closer to production. Watson nonetheless insisted: “We

continue to have an advantaged portfolio, and we have maintained our industry-leading position in upstream

earnings per barrel for the past four years.”

2013 saw both upstream and downstream earnings fall significantly, with upstream earnings decreasing

from around $23.78 billion to around $20.8 billion, and downstream falling from around $4.3 billion to

$2.23 billion. Cash flow from operations fell from $38.8 billion in 2012 to $35 billion last year, during a

period when capital expenditure ramped up from $34.2 billion to $41.9 billion.

The explorer’s draft reserve figures for last year show an 85% reserve replacement ratio, with around 800

billion barrels of oil equivalent added. Fourth-quarter production dipped to 2.58 billion barrels of oil

equivalent from 2.67 billion boe in the year-ago period, in a slip put down to normal field declines and

lower cost recovery volumes having outweighed project ramp-ups in the US and Nigeria.

In the last three months of 2013 in the US, Chevron saw average crude oil and natural gas liquids prices

slide from $91 a barrel to $90 during the same period in 2012, while gas prices rose from $3.22 per

thousand cubic feet to $3.35 per mcf over the same timeframe. Internationally, oil and natural gas liquids

prices rose for Chevron in the fourth quarter to $101 a barrel from $100 a year earlier while gas was down

to $5.75 per mcf from the year-ago period's $5.97.




Energy supermajors need a period of less risk and more reward By Telegraph staff

All the so-called energy giants are thinking very carefully about the quality of some of their existing assets and the need to rein in capital expenditure

Risk versus reward is the perennial dilemma that faces every oil company chief executive. Pumping tens of billions of dollars into discovering oil and gas resources hidden deep under the world’s oceans and deserts requires long-term thinking and nerves of steel because invariably it can take decades for the investment to pay off.

Royal Dutch Shell new chief executive, Ben van Beurden, is close to making one of those long-term strategic decisions after he revealed that the company was reviewing all of its options concerning the future of its operations in the Alaskan Arctic. Legal problems and

environmental concerns mean that drilling is called off for another year anyway, but there is a hint that Shell’s interest in the region has waned.

It would not be the first time that Shell has turned its back on a region that eventually turned into

a hot prospect. In the 1970s, the company discovered Qatar’s giant North Field, the world’s single largest natural gas reservoir, only to step back and watch US rival Mobil step in to sign the first big liquefied natural gas deals with Doha. Shell eventually returned and is today the major player in global liquefied natural gas, with much of it coming from the North Field in the Arabian Gulf, but that has come at a staggering cost.

Mr Van Beurden will not be alone when it comes to oil company chief executives making big strategic decisions on projects this year. All the so-called supermajors, such as Shell, ExxonMobil, BP (LSE: BP.L - news) and Chevron (Amsterdam: CHTEX.AS - news) , are thinking very carefully about the quality of some of their existing assets and the need to rein in capital expenditure, which, some experts say, has over the past decade got out of control as producers chased additional barrels and reserves.




This quest for new resources over the past decade has taken the oil companies into new frontiers with enormous risks, from the frozen Arctic tundra to the war-torn deserts of southern Iraq. The energy revolution now under way in the shale formations of North America which, by 2015, is expected to push the US past Russia and Saudi Arabia as the world’s largest producer of crude could see more oil companies taking fewer risks.

This is especially true when the world appears to be comfortably supplied with crude. In an interview with The Telegraph, Fatih Birol, chief economist at the International Energy Agency, said he still expects “increased supply from the US and major producers” such as Iran and Iraq.

In this context, oil majors may be wiser to conserve their capital and keep the oil in the ground. This May, the best of British creativity will be showcased in Istanbul at a three-day festival that is being described by the organisers as “a trade show on steroids”. Some of the UK’s most innovative companies will be there, pitching to 6,000 business leaders, entrepreneurs, high net-worth individuals and senior government officials.

Around 100 SMEs will be flying to Turkey to take part in the event, which is part of the Great Festivals of Creativity a rolling campaign to promote the UK’s reputation around the world. Events in Hong Kong and Shanghai are also planned during the next 14 months.

So, what should the owners of “export-ready” SMEs, who UK Trade and Investment are encouraging to join the trip to Istanbul, make of events that have unfolded this week? Emerging markets, such as Turkey, have been taking a battering. Does it mean that, rather than spreading their horizons to the MINTS - the next group of emerging economies to which SMEs are being encouraged to export they should instead play safe and focus on more familiar markets closer to home?

No. For all the short-term turbulence, and deeply engrained issues of political and corporate governance, the demographics of the MINTs are strongly in their favour. They have big populations, well-balanced between youth and the elderly.

As Jim O’Neill, who coined the phrase for Mexico, Indonesia, Nigeria and Turkey, wrote in a recent Telegraph column: “They do not need to do that much to grow by even faster rates in the decades ahead whereas, elsewhere, most of us have to improve our productivity to generate stronger growth." It may not be for the fainthearted but it’s an export challenge that can deliver rich rewards.




China manufacturing gauge falls to lowest level since July http://www.gulf-times.com/business

An employee seals bottles of Maggi Seasoning on a machine at the Nestle factory in Dongguan. A Chinese manufacturing gauge fell to a six-month low in January as output and orders slowed amid government efforts to rein in excessive credit.

A Chinese manufacturing gauge fell to a six-month low in January as output and orders slowed amid government efforts to rein in excessive credit. The Purchasing Managers’ Index was at 50.5, the National Bureau of Statistics and China Federation of Logistics and Purchasing said yesterday in Beijing. That matched the 50.5 median estimate of analysts surveyed by Bloomberg News and compared with December’s 51 reading. Numbers above 50 signal expansion.

A separate manufacturing gauge released by HSBC Holdings and Markit Economics this week pointed to the first contraction in six months, underscoring the risk of a deeper slowdown in the world’s second-biggest economy. Communist Party leaders are wrestling with risks from a $6tn shadow-banking industry and swelling local-government debt.“The economy has lost some momentum,” said Wang Tao, chief China economist at UBS AG in Hong Kong, who previously worked at the International Monetary Fund. Credit growth slowed in the second half and “that impact is being felt,” she said.

Estimates for the official PMI from 31 economists ranged from 50 to 50.9. The benchmark Shanghai Composite Index fell 0.8% on January 30, capping the worst start to a year since 2010, on concern the economy is slowing as the US Federal Reserve cuts stimulus. China’s markets are closed for the Lunar New Year holiday from January 31 to February 6.

A gauge of output in January fell to a four-month low of 53 from 53.9, while the new-orders index declined to a six-month low of 50.9 from 52.0, according to government data. The survey suggested manufacturing jobs are shrinking at a faster pace, with a gauge of employment declining to 48.2, the lowest since February 2013. HSBC’s survey showed companies eliminating




jobs at the fastest rate in almost five years. HSBC’s broader index, which showed a reading of 49.5 for January, is based on responses from more than 420 manufacturers and is weighted more toward smaller companies. The official PMI is based on questionnaires sent to about 3,000 companies.

“Growth may continue to slow in the next couple of quarters due to generally tighter credit conditions, amid government efforts to contain local government debt and regulate shadow banking,” said Ding Shuang, senior China economist at Citigroup Inc in Hong Kong, who previously worked at the International Monetary Fund. Yesterday’s data suggest that a “gradual deceleration of economic activity continued at the beginning of the year,” Ding said.

China’s government-sponsored PMI has stronger representation of large companies and state-owned enterprises that serve the domestic market than the one prepared by Markit and HSBC, according to Louis Kuijs, chief China economist at Royal Bank of Scotland Group in Hong Kong. The decline in January’s PMI was mainly due to the approach of the Lunar New Year holiday, Zhao Qinghe, a statistician at the statistics bureau, said in a statement yesterday. China’s

operating environment for production will improve in 2014, Zhao said.

Bank of America Corp analysts urged reading the January and February PMI figures “with a grain of salt” because of production slowdowns related to workers returning home for the week-long festival. “We do not think a notable growth slowdown is evident at present,” Hong Kong-based economists Xiaojia Zhi, Ting Lu and Sylvia Sheng wrote in a January 29 report.

Citigroup’s Ding said the decline in January’s official PMI is “partially seasonal” because of the holiday, whose timing shifts every year. Last year, the PMI fell to 50.4 in January and 50.1 in February, when the holiday took place. The index rose to 50.5 in January 2012, when that year’s new year festival occurred, from December 2011’s 50.3 and November 2011’s reading of 49.

Reports yesterday from China and South Korea point to a slowdown in global demand. China’s PMI survey showed export orders shrinking at a faster pace, with a reading of 49.3, the lowest since July. South Korea exports unexpectedly fell 0.2% last month from a year earlier, compared with the median estimate for a 1.5% increase in a Bloomberg News survey of analysts. China’s economy grew 7.7% in 2013, the same rate as in 2012. Growth is forecast to be 7.4% this year, the slowest pace since 1990, based on the median estimate in a Bloomberg News survey. China Credit Trust Co reached an agreement this week to repay bailed-out trust holders in a high-yield product whose threatened failure spurred concern that financial stresses and defaults will mount in the nation’s $1.7tn trust industry.




UK needs 40 frack wells to see if shale gas is viable, says Lord Browne By Andrew Trotmanhttp://www.telegraph.co.uk/finance

Lord Browne believes utilising shale gas is a “national imperative” as it is the "solution to our

energy challenges"

Lord Browne, the chairman of Cuadrilla, has said it will take at least

five years and up to 40 fracking wells to discover whether the UK

has a viable shale gas industry. The drilling company last month

abandoned plans for future fracking in Sussex, saying that the rocks

it drilled into last summer are naturally fractured, making work at

the site unnecessary.

However, Lord Browne still believes utilising shale gas is a “national imperative”, with 1,300 trillion cubic feet of gas estimated to be locked underground in the north of England alone.

“We have an idea of the UK’s potential for shale, what we now need to do is figure out how much we can produce economically and how fast, which means wells need to be drilled and need to be fracked. There is no other way to do it,” the former BP chief executive told The Guardian on the fringes of a debate on fracking held by the think tank Policy Exchange.

However, getting to the point where companies can start fracking for shale gas would take a long time because of current UK planning laws, he believes. “We have very tight regulation, particularly on planning permission,” Lord Browne added. Last month, Prime Minister David Cameron said fracking could create up to 74,000 jobs and result in £3.5bn of investment. Meanwhile, the US has seen energy prices plummet after its revolution in shale oil and gas, and Lord Browne is keen to see the same effect in Britain, where households are grappling with rising bills.

“It is in the national interest of the UK to do something that is good for the UK and fits into the bigger picture [of combating climate change globally],” he said. “The US has done this and I find it extraordinary that we should step to one side and let the US and others get on with it. It is a national imperative.” Fracking, which involves pumping water, sand and chemicals down the well at high pressure to fracture the rock, is opposed by environmental campaigners, who fear it could cause earthquakes.

However, supporters say the process is greener than coal-fired power generation. Lord Browne said: “The solution to our energy challenges is staring us in the face, and we don’t need to wait until the end of the decade. It’s time to abandon the UK’s fossil fuel addiction and invest in energy efficiency and the nation’s world-class renewable power potential.”




OMV Comes Up Dry with Matuku Well, New Zealand Rigzone Staff , http://www.rigzone.com/news/oil_gas/

OMV New Zealand reported Friday that it has completed drilling operations on the Matuku-1 well in the offshore Taranaki Basin, but that the well failed to find commercial quantities of hydrocarbons.

The Matuku-1 well was drilled some 15,900 feet into the Cretaceous Rakopi Formation. Although it encountered sandstones in both its primary and secondary targets (Kapuni Group F-sands and the North Cape Formation), it did not find commercial hydrocarbons. The well has now been plugged and abandoned.

OMV said that a "vast amount" of logging and drilling data has been gathered that will now be used to update geological models of the area. The firm said the data would help better predict where hydrocarbons may have been generated and trapped.

"Although it is disappointing that we didn't discover a new major oil field, this is the nature of oil and gas exploration. The probability of making a new discovery is typically well below 50 percent. To be a successful explorer requires a long-term commitment and a willingness to continuously re-evaluate your geological model based on new information becoming available," OMV New Zealand Managing Director Peter Zeilinger said.

OMV added that the Kan Tan IV (DW semisub) rig will be handed over to AWE for its drilling campaign, before OMV New Zealand takes the rig back to explore the Whio prospect in the PEP 51313 permit, south of the producing Maari oilfield.




Blast hits Yemen's main oil pipeline.-Reuters

Armed tribesmen bombed Yemen's main oil pipeline on Saturday, halting crude flow to the country's main export terminal less than a month after it was repaired, oil and local officials said. The attack occurred in the Serwah district in the central oil-producing province of Maarib, they said, and caused a huge fire that prompted the closure of the pipeline and stopped oil flow from the Maarib fields to the Ras Isa oil terminal on the Red Sea.

Yemen, which relies on crude exports to finance up to 70 per cent of its budget, has suffered frequent bombings of its main pipeline in recent years. The last one took place on December 26 and the pipeline was repaired on Jan. 5. Disgruntled tribesmen stage these attacks to pressure the government to provide jobs, settle land disputes or free relatives from prison. Such lawlessness is a global concern, particularly for the United States and its

Gulf Arab allies, because of Yemen's strategic position next to oil exporter Saudi Arabia and to main shipping lanes. Yeman is also home to one of al Qaeda's most active wings. Before a spate of attacks that began in 2011, the 270-mile Maarib pipeline carried around 110,000 barrels per day to Ras Isa .




Pakistani Moving forward on Thar Coal Published in The Express Tribune, February 2nd, 2014

Ordinarily, when the government does something right after a significant delay, our attitude has been: ‘better late than never’. But with the recent groundbreaking at the Thar Coalfields by the Sindh Engro Coal Mining Company, we are more inclined to say: ‘it’s about time’.

The scale and scope of the coalfields in Thar was first discovered in the early 1990s. The Sindh government has effectively been sitting on literally a buried treasure of energy for more than 20 years. For the first decade and a half, they at least had some legitimate excuses, mostly to do with how little financial and political autonomy they were granted by the federal government (although even this excuse is somewhat debatable). For the past four years, however, that excuse has not existed. Sindh had both the financial and legal wherewithal to engage in the project and a committed, well-respected local investor in the form of Engro Corporation practically begging them for the go-ahead. At long last, the

serially inept Sindh government appears to have got its act together just long enough for work to start on the coal mining project.

Yet, even now, there appear to be some hurdles that are left. We are disturbed to hear, for instance, that for a project that is supposed to have achieved a financial close, its bankers still have concerns about providing the loans for the project. When was the Sindh government planning on assuaging those fears? And why has it not addressed them already? While this newspaper is sceptical of a national energy policy so thoroughly reliant on coal, we do feel that coal is a necessary component of the solution to the medium-term crisis. And unfortunately for the rest of the country, control over how successful the national coal policy will be rests entirely in the hands of a Sindh government that does not appear to have grasped the urgency of the situation. Perhaps, we should be more grateful that the project has at least started. It may indeed bring much-needed investment and prosperity to Tharparkar, one of the poorest districts in Pakistan. But for that to happen, the provincial government must change its ways.

Former president Asif Zardari, Prime Minister Nawaz Sharif and Sindh CM

Qaim Ali Shah unveil the 660MW coal power generation project at Thar.




National Oilwell Varco Report Strong Demand for Oilfield Equipment Press Release NOV , Americas, National Oilwell Varco, News .

National Oilwell Varco, Inc. today reported that for the fourth quarter ended December 31,

2013 it earned net income of $658 million, or $1.53 per fully diluted share. Earnings

improved three percent compared to the third quarter of 2013, and were down two percent

compared to the fourth quarter of 2012.

Excluding $16 million in pre-tax transaction charges, net income was $670 million, or $1.56 per fully diluted share, up 16 percent from the third quarter of 2013, and up five percent from the fourth quarter of 2012, excluding transaction charges from all periods.

Revenues reported for the full year 2013 were $22.77 billion, and net income was $2.33 billion, or $5.44 per fully diluted share. Operating profit for the full year 2013 was $3.41 billion. Excluding $156 million in pre-tax transaction charges and $102 million in pre-tax gains resulting from the settlement of an outstanding legal claim, net income was $2.36 billion, or $5.52 per fully diluted share, and operating profit was $3.47 billion or 15.2 percent of sales, for the full year 2013.

Revenues for the fourth quarter increased nine percent sequentially to $6.17 billion. Operating profit for the fourth quarter, excluding transaction charges, was $973 million or 15.8 percent of sales, up 14 percent from the third quarter of 2013. Operating profit flow-through, or the change in operating profit divided by the change in revenue, was 25 percent from the third quarter of 2013 to the fourth quarter of 2013, and was four




percent from the fourth quarter of 2012 to the fourth quarter of 2013, excluding transaction charges from all periods. The Company’s fourth quarter 2013 results included a record $1.5 billion in cash flow from operations, 50 percent greater than the previous record set in the third quarter of 2013.

Backlog for capital equipment orders for the Company’s Rig Technology segment at December 31, 2013 was a record at $16.24 billion, up seven percent from the third quarter of 2013 and up 37 percent from the end of the fourth quarter of 2012. New orders during the quarter were $3.61 billion, reflecting continued strong demand for oilfield equipment.

Pete Miller, Chairman and CEO of National Oilwell Varco, remarked, “The fourth quarter marked a strong

finish to a challenging, but solid year. For the year, the Company’s continued investments in technology,

products, facilities, and our people, enabled us to better support our customers, and ultimately led to a year

in which we set new annual records for revenues, capital equipment orders and backlog, and cash flow from

operations. I would like to thank our customers for their continued trust in us, and all of our dedicated

employees for their hard work and outstanding execution this year.

As we enter 2014, we recognize that there remain headwinds facing us in the North American land market.

However, we are excited to be entering the year with strong financial resources, a very solid backlog, and

an experienced group of employees at NOV that remains committed to delivering the highest quality of

products and services to our customers. We are also excited about the upcoming spin-off of NOV’s

distribution business from the remainder of the Company in 2014, which we believe will enable the

distribution business and the remainder of NOV to have the enhanced operational flexibility to focus on

their specific products, services and customers.”

Rig Technology

Fourth quarter revenues for the Rig Technology segment were $3.31 billion, an increase of 16 percent from the third quarter of 2013 and an increase of 14 percent from the fourth quarter of 2012. Operating profit for this segment was $697 million, or 21.1 percent of sales, an increase of 15 percent from the third quarter of 2013 and an increase of eight percent from the fourth quarter of 2012. Sequential operating profit flow-through was 19 percent. Year-over-year operating profit flow-through was 12 percent. Revenue out of backlog for the segment increased 20 percent sequentially and increased 14 percent year-over-year, to $2.52 billion for the fourth quarter of 2013.

Petroleum Services & Supplies

Revenues for the fourth quarter of 2013 for the Petroleum Services & Supplies segment were $1.93 billion, up six percent compared to third quarter 2013 results and up 9 percent compared to fourth quarter 2012 results. Operating profit was $366 million, or 19.0 percent of sales, up 13 percent from the third quarter of 2013 and an increase of three percent from the fourth quarter of 2012. Sequential operating profit flow-through was 36 percent. Operating profit flow-through was seven percent from the fourth quarter of 2012 to the fourth quarter of 2013.

Distribution & Transmission

Fourth quarter revenues for the Distribution & Transmission segment were $1.25 billion, down seven percent from the third quarter of 2013, and down one percent from the fourth quarter of 2012. Fourth quarter operating profit was $60 million or 4.8 percent of sales.




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