DRQ Dril-Quip Dashboard

Risks

• The outbreak of COVID-19 and developments in the global oil markets have had, and may continue to have, material adverse consequences for general economic, financial and business conditions, and could materially and adversely affect our business, financial condition, results of operations and liquidity and those of our customers, suppliers and other counterparties.
• A material or extended decline in expenditures by the oil and gas industry could significantly reduce our revenue and income.
• We may not be able to satisfy technical requirements, testing requirements or other specifications under contracts and contract tenders.
• We may be unable to successfully compete with other manufacturers of drilling and production equipment.
• Our customers’ industries are undergoing continuing consolidation that may impact our results of operations.
• Increases in the cost of raw materials and energy used in our manufacturing processes could negatively impact our profitability.
• Our business involves numerous operating hazards that may not be covered by insurance. The occurrence of an event not fully covered by insurance could have a material adverse effect on our results of operations, financial position and cash flows.
• Our international operations expose us to instability and changes in economic and political conditions and other risks inherent to international business, which could have a material adverse effect on our results of operations, financial position or cash flows.
• Loss of our key management or other personnel could adversely impact our business.
• The overall timing and level of transition of the global energy sector from fossil-based systems of energy production and consumption to more renewable energy sources could adversely affect our business.
• We rely on technology provided by third parties and our business may be materially adversely affected if we are unable to renew our licensing arrangements with them.
• The loss of a significant customer could have an adverse impact on our financial results.
• We depend on third-party suppliers for timely deliveries of raw materials, and our results of operations could be adversely affected if we are unable to obtain adequate supplies in a timely manner.
• Conditions in the global financial system may have impacts on our business and financial position that we currently cannot predict.
• We are exposed to the credit risks of our customers, and a general increase in the nonpayment and nonperformance by customers could have an adverse impact on our cash flows, results of operations and financial condition.
• Impairment in the carrying value of long-lived assets, inventory, intangible assets and goodwill could negatively affect our operating results.
• Our excess cash is invested in various financial instruments which may subject us to potential losses.
• We may lose money on fixed-price contracts.
• We may be required to recognize a charge against current earnings because of over time method of accounting.
• Restrictions in the agreement governing the Asset Backed Loan (ABL) Credit Facility could adversely affect our business, financial condition and results of operations.
• Our international operations require us to comply with a number of U.S. and foreign regulations governing the international trade of goods, services and technology, which expose us to compliance risks.
• We are subject to taxation in many jurisdictions and there are inherent uncertainties in the final determination of our tax liabilities.
• Our operations and our customers’ operations are subject to a variety of governmental laws and regulations that may increase our costs, limit the demand for our products and services or restrict our operations.
• Our businesses and our customers’ businesses are subject to environmental laws and regulations that may increase our costs, limit the demand for our products and services or restrict our operations.
• Our business is subject to complex and evolving U.S. and foreign laws and regulations regarding privacy and data protection.
• Our business could be adversely affected if we do not develop new products and secure and retain patents related to our products.
• Our business could be adversely affected by a failure or breach of our information technology systems.
• The market price of our common stock may be volatile.
• Provisions in our corporate documents and Delaware law could delay or prevent a change in control of the Company, even if that change would be beneficial to our stockholders.