(RTTNews) - Oil & gas exploration accessories maker WSP Holdings Limited (WH: News ) Tuesday reported a loss for the third quarter, as revenues declined 68% due to lower demand and price for its products, sending the shares down nearly 20% in morning trade.

Net loss for the quarter attributable to the company was $11.7 million or $0.06 per share, compared with a net income of $29.8 million or $0.14 per share in the prior-year quarter. Loss per American Depository Shares was $0.11, compared to a profit of $0.29 in the year-ago quarter.

The Wuxi, China-based company's quarterly net revenues plunged 68% to $90.24 million from $282.37 million in the comparable period. Sales volume was 88,497 tonnes, down 50.6% from 179,175 tonnes in the third quarter of 2008.

Domestic sales increased 15.7% year-over-year to $65.8 million, while International sales plunged 89.1% to $24.5 million from last year, due to a significant decrease in demand for OCTG from international markets, especially in North America.

Sales volume for API (American Petroleum Institute) products was 67,421 tonnes, down 29% from 94,935 tonnes a year ago. API product sales were $63.6 million, 54.9% lower than $140.9 million a year earlier, reflecting a 36.4% decline in average selling prices.

Sales volume for non-API products dropped 76.1% to 11,894 tonnes from 49,822 tonnes in the previous year. Non-API product sales were $20.7 million, down 79.0% from $98.7 million in the third quarter of 2008.

API products accounted for 70.5% of the company's net revenues, compared to 49.9% last year. Non-API products accounted for 23.0% of the company's net revenues, compared to 34.9% in the previous year.
Gross margin was 5.0%, compared with 23.3% in the prior year, impacted negatively by lower average selling prices for OCTG (Oil Country Tubular Goods) products and a larger proportion of lower-margin API products in the sales mix.

At the end of the quarter, the company had cash and cash equivalents of $83.9 million, lower than $89.1 million as of December 31, 2008.

For the nine-month period, net income attributable to the company plummeted to $19.65 million or $0.10 per share from $71.59 million or $0.35 per share in the previous year. Earnings per ADS was $0.19, much lower than $0.70 in the comparable period.

Year-to-date, net revenues were $427.30 million, lower than $612.78 million last year.

Looking ahead, the company expects domestic shipments in the fourth quarter will remain at the same level as the third quarter, due to the normal seasonal slowdown in drilling activities in Northern China during the winter months.

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