Printer Friendly

NEWPARK RESOURCES EXITS MARINE REPAIR BUSINESS TO FOCUS ON OIL AND GAS SERVICES

 NEW ORLEANS, Jan. 12 /PRNewswire/ -- Newpark Resources, Inc. (NASDAQ: NPRS) today announced that it leased its marine repair operation in Houston to a subsidiary of SFA Industries of Houston, to which it also granted an option to purchase the facility.
 Newpark said the transaction would have no impact on operating earnings during the two-year lease term. Beginning in the 1993 fourth quarter, Newpark will report the results of the marine repair business as a discontinued operation, and will take a $1.7 million nonrecurring charge to fourth quarter earnings to reserve both for costs and expenses associated with its discontinuance and the ultimate disposal of the associated assets. The company also accepted a commitment, subject to final documentation, for a $9 million sale and leaseback financing of the assets of the marine repair business, and plans to utilize the proceeds to reduce its short-term bank borrowings and expand its core integrated services to the oil and natural gas industry.
 In an unrelated matter, Newpark disclosed that the sale of 700,000 shares of its common stock by an unaffiliated shareholder, under a registration statement filed with the Securities and Exchange Commission on Dec. 21, 1993, was completed on Jan. 10.
 In addition, Newpark said it signed a contract with a major oil company to provide nonhazardous oilfield waste (NOW) remediation services for production sites primarily in Texas and in several other states. James D. Cole, president and chief executive officer, noted that the company had recently started two projects for this client in the Houston area, and that performance under the contract was expected to continue for several calendar years.
 Newpark provides comprehensive environmental management and oilfield construction services to the oil and gas industry in the Gulf Coast region, principally Louisiana and Texas.
 -0- 1/12/94
 /CONTACT: Matthew W. Hardey, vice president-finance of Newpark Resources, 504-838-8222/
 (NPRS)


CO: Newpark Resources, Inc. ST: Louisiana, Texas IN: OIL SU:

WB-LG -- NY066 -- 1463 01/12/94 14:46 EST
COPYRIGHT 1994 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1994 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 12, 1994
Words:328
Previous Article:INFANT MORTALITY DATABASE DEVELOPED TO EASE PARENTS' SUFFERING
Next Article:ROGERS CABLESYSTEMS CDN$300 MILLION SENIOR SECURED NOTES RATED 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE --
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters