HOUSTON, May 2 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC) reported
a net loss applicable to common shareholders of $52.0 million ($.27 per
diluted share) for the three months ended March 31, 2000, compared with net
income of $1.6 million ($.01 per diluted share) for the three months ended
March 31, 1999. Included in the loss for the current quarter are dividends of
$12.9 million on the redeemable preferred stock issued in April, 1999. The
first quarter of 1999 included an extraordinary loss of $1.7 million due to
the early extinguishment of debt. Operating loss for the first quarter of
2000 was $7.2 million on revenues of $207.5 million compared to operating
income of $32.7 million on revenues of $243.8 million in the first quarter of
1999.
Operating results for the first quarter of 2000 were below the comparable
period in 1999 due primarily to lower average day rates in the Deepwater and
Shallow Water segments and lower margins in the Engineering Services segment.
Average fleet utilization for the first quarter of 2000 was 42% compared to
43% for the same quarter in the preceding year.
Interest expense, net of capitalized interest, for the three months ended
March 31, 2000, was $51.9 million compared to $28.4 million for the three
months ended March 31, 1999 due to higher debt levels and increased average
interest rates. Capitalized interest for the current quarter also increased
by $2.6 million over the comparable period due to higher investment in the
Company's deep water construction program.
Paul B. Loyd, Jr., the Company's Chairman and Chief Executive Officer,
said, "Although day rates and rig utilization in the first quarter were below
the levels realized in the same period last year and negatively affected our
results, we believe the low point in the cycle for R&B Falcon's earnings
performance has been reached. We expect to see successive improvements in
quarterly results from this point forward due to increasing activity in
virtually all of our business segments. The commencement of long term
contracts for our new Deepwater Nautilus and Deepwater Navigator units in the
second quarter as well as higher utilization of our existing deep water fleet
over the balance of the year in the U.S., Brazil, West Africa and North Sea
markets will provide strong cash flow and positively impact earnings in future
quarters. We are also encouraged by the continuing day rate improvements in
the Gulf of Mexico shallow water market and by higher demand for rigs in the
inland water market of the gulf coast as operators increase natural gas
drilling activity. 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 worldwide 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 139 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
MARCH 31,
2000 1999
OPERATING REVENUES:
Deepwater $70.4 $90.2
Shallow water 45.1 66.8
Inland water 26.5 31.0
Engineering services and land operations 63.6 55.8
Development 1.9 ---
Total operating revenues 207.5 243.8
COSTS AND EXPENSES:
Deepwater 45.1 43.3
Shallow water 32.2 48.3
Inland water 27.4 27.9
Engineering services and land operations 50.5 38.3
Development 0.8 1.0
Depreciation and amortization 44.2 36.5
General and administrative 14.5 15.8
Total costs and expenses 214.7 211.1
OPERATING INCOME (LOSS) (7.2) 32.7
OTHER INCOME (EXPENSE):
Interest expense, net of capitalized interest (51.9) (28.4)
Interest income 9.2 4.6
Income (loss) from equity investees plus
related income (3.6) 0.6
Other, net (0.4) (0.2)
Total other income (expense) (46.7) (23.4)
INCOME (LOSS) BEFORE INCOME TAXES,
MINORITY INTEREST AND EXTRAORDINARY LOSS (53.9) 9.3
INCOME TAX EXPENSE (BENEFIT):
Current (2.1) 7.8
Deferred (14.5) (4.5)
Total income tax expense (benefit) (16.6) 3.3
MINORITY INTEREST (1.8) (2.7)
INCOME (LOSS) BEFORE EXTRAORDINARY LOSS (39.1) 3.3
EXTRAORDINARY LOSS, NET OF TAX BENEFIT --- (1.7)
NET INCOME (LOSS) (39.1) 1.6
DIVIDENDS AND ACCRETION ON PREFERRED STOCK 12.9 ---
NET INCOME (LOSS) APPLICABLE TO COMMON
STOCKHOLDERS $(52.0) $1.6
NET INCOME (LOSS) PER COMMON SHARE:
BASIC:
Income (loss) before extraordinary loss and
after preferred stock dividends $(0.27) $0.02
Extraordinary loss --- (0.01)
Net income (loss) $(0.27) $0.01
DILUTED:
Income (loss) before extraordinary loss
and after preferred stock dividends $(0.27) $0.02
Extraordinary loss --- (0.01)
Net income (loss) $(0.27) $0.01
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
BASIC 193.0 192.5
DILUTED 193.0 193.5
R&B FALCON CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in millions)
03/31/2000 12/31/1999
ASSETS:
Cash, cash equivalents and short-term
investments $509.6 $717.0
Less cash dedicated to capital projects* (79.8) (160.4)
Other current assets 291.0 316.3
Net property and equipment 3,715.4 3,635.2
Other assets 347.6 413.8
TOTAL ASSETS $4,783.8 $4,921.9
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $280.3 $358.6
Long-term obligations 2,919.5 2,933.4
Other noncurrent liabilities 81.6 92.9
Minority interest 57.8 56.6
Preferred stock 288.8 276.0
Stockholders' equity 1,155.8 1,204.4
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $4,783.8 $4,921.9
*Classified as other assets
SOURCE R&B Falcon Corporation
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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
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