Oil & gas exploration accessories provider WSP Holdings Ltd (WH), Wednesday reported a jump in first quarter profit on higher revenues, driven by strong sales of API products. Non-API product sales, however, dropped, impacted by weak demand from North America.
First quarter net income attributable to WSP Holdings rose 35.0% to $21.36 million or $0.10 per share from $15.82 million or $0.08 per share in the same quarter a year ago. Earnings per ADS were $0.21, up from $0.15 in the prior-year quarter.
Revenues for the quarter surged 49.0% to $195.50 million from $131.19 million in the comparable quarter last year.
The company said its domestic sales accounted for 40.1% of total net revenues, while sales to overseas customers accounted for 60% of revenues in the quarter, primarily reflecting sales of high-end API products to North Africa.
Sales volume for API products rose 117.5% to 101,974 tonnes, while sales of API product surged 148.2% to $147.5 million from the first quarter of 2008.
Gross margin was 26.8%, compared to 24.4% in the corresponding quarter of the prior year reflecting comparatively higher average selling prices of API and non-API products, increased sales of high-end API products, and comparatively low and stable raw materials prices.
Income from operations was $30.14 million, compared to $25.09 million in the year-earlier quarter. Operating margin was 15.4%, down from 19.1% in the year-ago quarter.
Longhua Piao, chief executive officer said, "We are increasing our marketing efforts in the Middle East and Russia, and seeking more orders to supply our products to overseas projects of SINOPEC, CNPC and CNOOC."
WH is currently trading at $4.00, up $0.46 or 12.99%, on a volume of 0.69 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.