Tetra Technologies Inc. (NYSE:TTI) filed Quarterly Report for the period ended 2011-06-30.
Highlight of Business Operations:With approximately $323.8 million of consolidated cash as of June 30, 2011, significant borrowing capacity under the terms of our existing bank revolving credit facilities, and the potential to access additional capital resources, we have significant capacity to fund our plans for future growth. Consolidated cash as of June 30, 2011, includes approximately $19.3 million held by our Compressco Partners subsidiary that is available solely for its plans for growth and operating needs. The heavy lift barge we purchased in July 2011 utilized $62.8 million of available cash, excluding the costs of transportation, outfitting, and inspection of the vessel. We expect to increase capital expenditure activity levels for 2011 for all of our businesses, except Maritech, compared to the reduced levels of the past year. We continue to seek new markets and new product development for our existing businesses and pursue strategic acquisition opportunities.
Consolidated general and administrative expenses increased during the second quarter of 2011 compared to the prior year period due to approximately $2.7 million of increased employee-related costs, primarily related to employee retention and incentive benefits paid in connection with the sale of Maritech properties. In addition, general and administrative expenses increased due to approximately $0.4 million of increased professional fee expenses and $0.7 million of increased insurance and other general expenses during the current year period. These increases were partially offset by decreased office expense.
During the second quarter of 2011, Maritech oil and gas property sales generated approximately $58.2 million of consolidated net gains. In addition, our Offshore Services segment generated an additional $1.6 million of gain from the sale of certain equipment assets.
Consolidated other expense increased during the second quarter of 2011 compared to the prior year period, primarily due to approximately $14.6 million of increased hedge ineffectiveness loss during the current year period that was realized upon the liquidation of commodity swap derivatives that previously hedged Maritech s production cash flows. Other expense also increased due to approximately $1.5 million of decreased foreign currency gains.
The increase in Fluids Division revenues during the second quarter of 2011 compared to the prior year period was primarily due to $5.8 million of increased product sales revenues. This increase in product sales revenues was due to $8.5 million of increased revenue from our chemicals operations. This increase in chemicals operations revenues is primarily attributed to increased sales of calcium chloride products, particularly in Europe, although our domestic production and sales volumes increased also. This increase in chemical product sales revenues was partially offset by approximately $2.6 million of decreased sales of clear brine fluids (CBFs). This decrease in CBF sales was due to decreased domestic activity that more than offset the increased international sales. Domestic offshore activity levels continue to be decreased as a result of the uncertain regulations governing offshore drilling activities following the April 2010 Macondo accident. Increased onshore domestic activity levels resulted in approximately $3.7 million of increased service revenues, including increased revenues from frac water services.
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