HOUSTON – The demand for equipment to operate safely in harsh environments plus the demand for new drilling rigs are proving a boon to oil and gas equipment manufacturers, according to industry analysts.
Further, the demand is likely to continue as contractors face the demands for technically challenging deepwater environments that cannot be met by an aging fleet.
One result of this is a spate of acquisitions. The most recent is GE’s (NYSE:GE) acquisition of Norway-based Naxys, a manufacturer of subsea leak detection and conditioning monitoring sensors. GE already had acquired Presens, a pressure, temperature, and flow measurement solutions provider.
Earlier acquisitions include National Oilwell Varco’s $2.5-billion purchase of Robbins & Myers Inc.; ESCO Corp.’s agreement to acquire all of the outstanding equity interests of Ulterra Drilling Technologies L.P. for about $325 million in cash; Oil States International (NYSE:OIS) has entered into a definitive asset purchase agreement to acquire Piper Valve Systems Ltd. for $48 million; and Axon Energy Products AS agreement to acquire the assets and existing business of DOYLES, through its subsidiary Axon Pressure Products.
The demand is reflected in the financial performance of most equipment suppliers. NOV, Cameron International, Aker Solutions, and GE all are reporting 2Q 2012 profit increases.