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SERV-TECH ANNOUNCES SECOND QUARTER RESULTS

    HOUSTON, Aug. 5 /PRNewswire/ -- Serv-Tech, Inc. (NASDAQ: STEC) announced that revenues in the second quarter 1993 were $32.4 million, $503,000 higher than revenues in the second quarter of 1992.  Net income for the three month period ended June 30, 1993, was $54,000, $1.4 million below net income in the year earlier period.  Earnings per share were one cent ($.01) in the second quarter 1993 compared to 26 cents ($.26) per share in the same period of 1992.  The decline in net income resulted primarily from a 32 percent reduction in revenues and lower profit margins in the company's refinery maintenance business which was adversely affected by reduced industry spending.
    For the six months ended June 30, 1993, total revenues were $73 million, 7.3 percent higher than revenues in the first six months of 1992.  Net income totalled $1.2 million, or $.21 per share, compared to net income of $3.1 million, $.54 per share, in the first half of 1992.
    Richard W. Krajicek, chairman of the board, stated, "As previously announced, we expected lower operating profits in the second quarter of 1993, because of weakness in the turnaround maintenance business.  Due to strong performance by our electrical and instrumentation division, we were able to report a small profit in the quarter.  We believe refinery spending will increase in the last half of 1993, as maintenance projects, which have been deferred in prior periods, are resumed.  We are already experiencing an increase in emergency shutdowns, which is advancing some work that was scheduled to be performed later in the year.  The replacement of the broad based BTU tax by the proposed gasoline tax, which is more favorable to the refining industry, and the finalization of the clean air act regulations expected later this year, should increase maintenance and capital spending by refiners and petrochemical plants.  We expect the turnaround maintenance business to continue to improve through the first half of 1994."
    Following are unaudited financial results for the three and six month periods ending June 30, 1993, and 1992.
                           SERV-TECH, INC.
                                                Three Months
                                               Ending June 30,
    (Dollars in thousands except
    per share data)                            1993        1992
    Revenues                                 $32,395     $31,891
    Operating income                             322       2,862
    Net Income                                    54       1,485
    Earnings per share                           .01         .26
    Average shares outstanding                 5,854       5,740
                                                 Six Months
                                               Ending June 30,
                                               1993        1992
    Revenues                                 $73,008     $68,066
    Operating income                           2,206       5,592
    Net Income                                 1,204       3,088
    Earnings per share                           .21         .54
    Average shares outstanding                 5,868       5,684
    Serv-Tech, Inc. provides specialty turnaround maintenance, environmental, engineering and construction services to the hydrocarbon processing and production industries.
    -0-             08/05/93
    CONTACT:  John M. Slack of Serv-Tech, Inc., 713-644-9974
    (STEC) CO:  SERV-TECH, INC. SU:  ERN ST:  TX


-- NY068 -- X267 08/05/93
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Publication:PR Newswire
Date:Aug 5, 1993
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