Though the priority in 2010 was preparing for growth and leveraging the business, I am pleased to report that the Company maintained its strong commitment to safety and to new product development during the year.







2010 was a year of rapid growth. The Company managed the upturn by maintaining focus on its core businesses and investing in technology, capacity, and people while maintaining a strong balance sheet.

The Company made a US$85 million net profit after tax as compared to a US$15 million loss in 2009. Both revenue and EBITDA were up substantially on the prior year. In 2010 our EBITDA was US$222 million (US$111 million in 2009) on revenues of US$1.476 billion (US$978 million in 2009).

These results allowed the Board to resume dividend payments in 2010.

Though the priority in 2010 was preparing for growth and leveraging the business, I am pleased to report that the Company maintained its strong commitment to safety and to new product development during the year. This commitment continues to leverage our expertise in the field with the ability to bring products to market at an extraordinary pace. During 2010 we launched over 11 new products and our ongoing R&D program remains on track to launch more new products in 2011.

Our Lost Time Days were down 19 percent and safety continues to be a core value. A global organisation has been established to support the efforts in Environmental, Health, and Safety (EHS) in order to rapidly deploy best practices and lessons learned around the world.

We are well-positioned to capture the increased demand we see in our markets for drilling services and products. Our focus will remain on meeting our customers' needs, today and tomorrow, with quality products and services while improving our safety performance.

I would like to thank my fellow Board members for their support of me personally and their advice and guidance provided to the Company. I would also like to thank our Chief Executive Officer, Craig Kipp, and his executive team for their leadership, dedication and outstanding performance during a period of rapid growth. On behalf of the Board and every shareholder, a "well done" to all of our 9,221 employees around the world for their efforts and achievements in 2010.

Historical Trends US$M


Financial 2007 2008 2009 2010
Revenue 1,576 1,839 978 1,476
EBITDA 297 356 111 222
EBITDA % 19% 19% 11% 15%
NPAT 81 157 –15 85
NPAT % 5% 9% –2% 6%
Cash from Operations 158 143 117 52
Cash from Operations % 10% 8% 12% 4%
Our people 2007 2008 2009 2010
Lost Time Days 1430 520 377 306
Total Case Incident Rate 3.26 2.15 1.78 2.23
Lost TimeIncident Rate 0.34 0.14 0.08 0.12
Number of Employees 9,056 8,530 7,001 9,221