Tetra contract with Petrobras finally see's profits ahead.
Its been 1yr & 5 months since TTI signed its contract with Petrobras but its finally seeing profits from this contract and more is coming in 4th qtr 2009 and 1st qtr of 2010.
Thank you, Joe. Clearly the highlight of the third quarter was another record-setting performance by our offshore services segment. This was a major factor in our reported earnings of $0.30 per share. As we review the quarter, I will expand on the offshore services performance and review the status of our key strategic initiatives.
During the quarter, our fluids division reported a seasonal quarterly decline in revenue in gross margins. This is associated with the normal seasonal decline in our European calcium chloride business. On a positive note, we are beginning to see signs of activity in our Gulf of Mexico deep water increasing.
And we delivered fluids to our Brazil under our previously announced Petrobras contract during the third quarter. We expect this to continue in the fourth quarter and the main impact of this contract should begin in early 2010.
Our onshore fluids declined in activity and also had weaker pricing, but we believe we have seen the bottom of this market for this business. Our El Dorado calcium chloride plant is expected to start commercial production during the fourth quarter. (link to this forecast)
Tetra signed contract with Petrobras on June 4th 2008