Dril-Quip and Proserv Group Announce Strategic Agreement
25 June 2020 - 6:30AM
Dril-Quip, Inc. (NYSE: DRQ) (the “Company” or “Dril-Quip”) and
Proserv Group (“Proserv”) today announced an agreement pursuant to
which Dril-Quip will rely upon Proserv for the development and
manufacturing of its subsea control systems as a supplier. The
mutually beneficial arrangement allows Dril-Quip to continue to
support its existing subsea controls customers with the support of
Proserv. The arrangement follows Dril-Quip’s strategic decision to
consolidate the supply and development of control systems with a
dedicated subsea controls provider.
Proserv’s independence in the controls area,
combined with its versatility to interface with all subsea tree
providers made it the natural party for Dril-Quip to partner with.
In addition, the agreement establishes a framework where Proserv
and Dril-Quip may pursue joint marketing and collaboration efforts,
with Dril-Quip providing subsea trees and Proserv providing subsea
controls. This bundled offering will be a compelling value
proposition for customers as it brings cutting edge technology
solutions at competitive prices.
Blake DeBerry, Dril-Quip's Chief Executive
Officer, commented, "We are pleased to announce this strategic
collaboration between Dril-Quip and Proserv which allows us to
leverage capabilities and enhance our product offerings. Our
collaboration will provide significant benefits to our customers in
the subsea production system market and allows access to
complementary award-winning subsea technologies at competitive
pricing. This agreement aligns the interests of both companies in
leveraging their respective technical and engineering expertise to
deliver high quality subsea trees and controls that will save
customers time and money, all while enhancing the execution of
their offshore projects. We look forward to engaging with Proserv
and our customers with these expanded offerings.”
Davis Larssen, Proserv Controls Chief Executive
Officer, stated, “We believe Proserv and Dril-Quip entering this
agreement is an exciting and refreshing development for operators
and our whole industry as we strive for value solutions focused on
best-in-class technologies. While Proserv will continue to operate
independently, Proserv will also now support Dril-Quip with the
supply of subsea controls to Dril-Quip’s overall subsea offering,
including fully integrated solutions that provide customers access
to best-in-class systems and service. At Proserv, our clear focus
is the continued development and supply of market leading control
systems. Our customers value our focus and we are attentive to
their current and future needs as we continue to invest in our
technology and build on our reputation for reliability and
non-obsolescence, while enabling advanced data management and
maximizing the benefits offered by digitalization as we move
forward.”
David Currie, Proserv Group Chief Executive
Officer, stated, “Following our restructuring in 2019 and the
creation of two focused divisions, this agreement reflects the next
logical stage for the Proserv Controls business as it continues to
focus on the core strengths of technology and innovative partnering
for customer success, as evident here with Dril-Quip, as the only
truly independent and focused controls provider in an industry that
looks to new solutions going forward.”
About Dril-Quip
Dril-Quip is a leading manufacturer of highly
engineered drilling and production equipment for use onshore and
offshore, which is particularly well suited for use in deep water,
harsh environments and severe service applications.
About Proserv Group
Proserv Group is a controls technology company,
incorporating two divisions, Proserv Controls and Gilmore providing
tailored solutions to clients across the energy sector. Proserv
operates worldwide and has offices in the U.S., Europe, the Middle
East & Asia.
Forward-Looking Statements
This press release contains certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 regarding the anticipated
benefits of the agreements with Proserv. Forward-looking statements
are based upon certain assumptions and analyses made by the Company
in light of its experience and perception of historical trends,
current conditions, expected future developments and other factors.
These statements are subject to risks, some of which are beyond the
Company’s control, including but not limited to, costs and
difficulties related to the collaboration with Proserv, the
volatility of oil and natural gas prices and cyclicality of the oil
and gas industry, decisions made by the Company’s customers and
suppliers, operating risks, and other factors detailed in the
Company’s public filings with the Securities and Exchange
Commission. Investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and actual outcomes may vary materially from those indicated.
Investor Relations Contact
Blake Holcomb, Director of Investor Relations and Corporate
Planning(713) 939-0047 x 6364Blake_Holcomb@dril-quip.com
Jonathan Sheikh-Miller, Public Relations Lead, Proserv+44 7711
008109Jonathan.Sheikh-Miller@proserv.com
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