HOUSTON, Feb. 23 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC)
reported a net loss applicable to common shareholders of $47.0 million
($.24 per diluted share) for the three months ended December 31, 1999,
compared with net income of $15.1 million ($.09 per diluted share) for the
three months ended December 31, 1998. The loss for the current quarter
includes dividends of $12.5 million on the redeemable preferred stock that was
issued in April. The fourth quarter of 1998 included an extraordinary loss of
$2.2 million due to the early extinguishment of debt and the reversal of a
$19.5 million charge associated with the recontinuance of oil and gas
operations. Operating loss for the quarter ended December 31, 1999 was
$0.5 million on revenues of $234.3 million compared to operating income of
$11.1 million on revenues of $228.7 million in the comparable quarter of the
prior year. Included in operating income for the fourth quarter of 1999 are
non-recurring charges of $3.0 million for an additional write-down of
equipment related to the cancellation of conversion projects. If these non-
recurring charges were eliminated, net loss for the current quarter would have
been $.23 per diluted share. The fourth quarter of 1998 included charges of
$32.5 million related to the cancellation of conversion projects and
$10.6 million for impairment of oil and gas properties, a $5.7 million gain
from the sale of an interest in a foreign offshore concession, and the
reversal of $7.0 million of merger expenses accrued in the prior year.
The loss applicable to common stockholders for the year ended December 31,
1999 was $103.2 million ($.54 per diluted share) and includes dividends of
$33.7 million on the redeemable preferred stock and a $1.7 million
extraordinary loss related to the early extinguishment of debt. Net income
applicable to common stockholders in 1998 was $102.8 million ($.61 per diluted
share) and included $24.2 million for the extraordinary loss related to the
early extinguishment of debt and $36.0 million income for the recontinuance of
previously discontinued oil and gas operations. Operating income for the year
ended December 31, 1999 was $45.1 million on revenues of $918.8 million
compared to operating income of $215.8 million in the prior year on revenues
of $1,032.6 million.
Despite recent improvements in the shallow and inland water segments and
the contribution of the engineering services segment, operating results for
the fourth quarter of 1999 and the full year were below the comparable periods
in 1998 due primarily to lower average day rates and fleet utilization.
Average fleet utilization for the fourth quarter of 1999 was 43% compared to
52% for the same quarter in the preceding year. For the year, average fleet
utilization was 41% in 1999 compared to 70% in 1998.
Interest expense, net of capitalized interest, for the three months ended
December 31, 1999, increased $32.4 million compared to the three months ended
December 31, 1998 due to higher debt levels and increased average interest
rates. There was also a $4.1 million increase in capitalized interest due to
increased investments in the Company's construction program.
Paul B. Loyd, Jr., the Company's Chairman and Chief Executive Officer,
said, "Our results for the fourth quarter and the full year reflect the
general weakness that prevailed in the drilling industry during 1999.
Although oil and gas prices have strengthened during the second half of the
year, this improvement has not yet resulted in significantly higher drilling
activity. However, with continued growth in world energy demand, decreased
inventories and prolonged stability in prices, the fundamentals are in place
for expansion of exploration and development expenditures.
Our deepwater business segment remains a strong earnings contributor and
will benefit over the year 2000 from the commencement of new contracts with
major operators and the delivery of four additional units as our construction
program winds down. Similarly, our domestic inland barge, jackup and
engineering services businesses are expected to continue operating at current
marketed capacity and will benefit from our ability to rapidly activate
additional units in response to increased natural gas drilling. We are
confident that R&B Falcon, with the largest fleet of drilling rigs in the
industry, will be the leading beneficiary as the overall demand for drilling
improves."
R&B Falcon Corporation operates the world's largest fleet of marine-based
drilling rigs servicing the international oil and gas industry. Its fleet is
composed of 135 marine-based drilling units including the industry's largest
fleets of barge and jackup rigs, and a fleet of semisubmersibles and
drillships which is among the most capable in the world. R&B Falcon also
provides turnkey and integrated services and operates mobile production units,
internationally-based land drilling rigs and an offshore towing business.
R&B FALCON CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in millions except per share amounts)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
OPERATING REVENUES:
Deepwater $ 84.8 $ 94.6 $ 354.9 $ 392.5
Shallow water 42.8 76.9 198.9 382.9
Inland water 37.0 44.6 121.7 244.3
Engineering services
and land operations 69.4 12.6 242.8 12.9
Development 0.3 --- 0.5 ---
Total operating
revenues 234.3 228.7 918.8 1,032.6
COSTS AND EXPENSES:
Deepwater 47.9 45.8 174.1 186.1
Shallow water 36.4 41.9 152.6 161.5
Inland water 33.1 43.1 99.0 169.1
Engineering services
and land operations 54.8 10.7 181.7 11.1
Development 1.2 4.1 3.7 19.5
Cancellation of
conversion projects 3.0 32.5 34.7 118.3
Depreciation and
amortization 43.3 29.6 158.0 98.0
General and
administrative 15.1 16.9 69.9 61.2
Merger expenses --- (7.0) --- (8.0)
Total costs and
expenses 234.8 217.6 873.7 816.8
OPERATING INCOME
(LOSS) (0.5) 11.1 45.1 215.8
OTHER INCOME (EXPENSE):
Interest expense,
net of capitalized
interest (53.3) (20.9) (169.8) (63.9)
Interest income 10.7 2.0 35.3 9.6
Income (loss) from
equity investees
plus related income (5.5) (0.2) 3.5 (0.2)
Other, net (0.5) --- (1.2) (0.1)
Total other income
(expense) (48.6) (19.1) (132.2) (54.6)
INCOME (LOSS) FROM
CONTINUING OPERATIONS
BEFORE INCOME TAXES,
MINORITY INTEREST AND
EXTRAORDINARY LOSS (49.1) (8.0) (87.1) 161.2
INCOME TAX EXPENSE
(BENEFIT):
Current 18.3 9.6 48.3 38.5
Deferred (36.1) (18.5) (79.9) 20.4
Total income tax
expense (benefit) (17.8) (8.9) (31.6) 58.9
MINORITY INTEREST (3.2) (3.1) (12.3) (11.3)
INCOME (LOSS) FROM
CONTINUING OPERATIONS
BEFORE EXTRAORDINARY
LOSS (34.5) (2.2) (67.8) 91.0
INCOME FROM
DISCONTINUED
OPERATIONS --- 19.5 --- 36.0
EXTRAORDINARY LOSS,
NET OF TAX BENEFIT --- (2.2) (1.7) (24.2)
NET INCOME (LOSS) (34.5) 15.1 (69.5) 102.8
DIVIDENDS AND
ACCRETION ON
PREFERRED STOCK 12.5 --- 33.7 ---
NET INCOME (LOSS)
APPLICABLE TO COMMON
STOCKHOLDERS $ (47.0) $ 15.1 $ (103.2) $ 102.8
NET INCOME (LOSS)
PER COMMON SHARE:
BASIC:
Continuing
operations $ (0.24) $ (0.01) $ (0.53) $ 0.54
Discontinued
operations --- 0.11 --- 0.21
Extraordinary loss --- (0.01) (0.01) (0.14)
Net income
(loss) $ (0.24) $ 0.09 $ (0.54) $ 0.61
DILUTED:
Continuing
operations $ (0.24) $ (0.01) $ (0.53) $ 0.54
Discontinued
operations --- 0.11 --- 0.21
Extraordinary loss --- (0.01) (0.01) (0.14)
Net income
(loss) $ (0.24) $ 0.09 $ (0.54) $ 0.61
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING:
BASIC 192.8 174.5 192.7 167.5
DILUTED 192.8 176.2 192.7 168.8
R&B FALCON CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in millions)
12/31/1999 12/31/1998
ASSETS:
Cash, cash equivalents and
short-term investments $ 717.0 $ 177.4
Less cash dedicated to
capital projects* (160.4) ---
Other current assets 310.5 361.1
Net property and equipment 3,635.2 3,030.9
Other assets 413.8 144.6
TOTAL ASSETS $ 4,916.1 $ 3,714.0
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 360.2 $ 353.2
Long-term obligations 2,933.4 1,866.2
Other noncurrent liabilities 92.9 181.6
Minority interest 56.6 62.8
Preferred stock 268.6 ---
Stockholders' equity 1,204.4 1,250.2
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 4,916.1 $ 3,714.0
*Classified as other assets
SOURCE R&B Falcon Corporation
 back to top
Related links:
http://www.rbfalcon.com
Company News On-Call:
http://www.prnewswire.com/comp/118988.html or fax,
800-758-5804, ext. 118988
CONTACT:
Charles R. Ofner of R&B Falcon Corporation,
281-496-5000
|
