HOUSTON, July 28 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC)
reported a 26.5% increase in revenues, $281.0 million for the second quarter
of 1998 compared to revenues of $222.2 million for the second quarter of 1997.
Operating income for the quarter ended June 30, 1998 was $111.9 million
compared to operating income for the quarter ended June 30, 1997 of
$91.3 million. The $20.6 million improvement in operating income is largely
attributable to the increased revenues due to higher dayrates fleetwide.
Income from continuing operations before extraordinary loss was $60.4 million
($.37 per diluted share) for the second quarter of 1998, compared with
$60.7 million ($.37 per diluted share) for the second quarter of 1997.
For the six months ended June 30, 1998, the Company reported a 31.8%
increase in revenues, $560.4 million compared to revenues of $425.3 million
for the same period in 1997. Operating income for the six months ended
June 30, 1998 was $237.9 million compared to operating income for the six
months ended June 30, 1997 of $161.1 million. The $76.8 million improvement
in operating income is largely attributable to the increased revenues due to
improved dayrates. Income from continuing operations before extraordinary
loss was $130.2 million ($.78 per diluted share) for the six months ended
June 30, 1998, compared with $105.4 million ($.64 per diluted share) for the
six months ended June 30, 1997.
During the three months ended June 30, 1998, the Company incurred an
extraordinary loss of $22.0 million ($.13 per diluted share) due to the
extinguishment of debt in connection with its successful $1.1 billion senior
note financing.
Steven Webster, the Company's President and CEO, said, "While second
quarter results reflect a substantial improvement in operating income from the
year ago quarter, net income was essentially the same due to a higher
effective tax rate. During the second quarter, we have seen a slowing of
current drilling levels which is reflected in lower utilization of our barge
and jackup fleets than we have experienced in recent quarters. While we
expect lower utilization in these segments through the next several quarters,
utilization of our high specification semisubmersible and drillship fleets
remains at virtually 100%. In fact, we expect to benefit from new higher
contract rates in this segment over the next several quarters. We believe
that the long-term fundamentals for our industry remain attractive, and we
will see a return to a balanced rig market in 1999."
R&B Falcon Corporation operates the world's largest fleet of 115 marine-
based drilling rigs for the international oil and gas industry consisting of
twelve drillships (including seven under construction), eleven semisubmersible
rigs (including two under construction), 26 jackups, three submersible rigs,
two tender rigs, 60 barge drilling and workover rigs and a floating production
vessel. R&B Falcon actively markets 101 of these units in the offshore and
inland waters worldwide. R&B Falcon also operates an inland marine towing and
service business.
The information above includes forward-looking statements within the
meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and
the Private Securities Litigation Reform Act of 1995. These statements are
based on certain assumptions and analyses made by the Company in light of its
experience and its perception of historical and future trends, on general
economic and business conditions and on numerous other factors, including
expected future developments, many of which are beyond the control of the
Company. Among the factors which could cause actual results to differ
materially are prices of oil and gas and fluctuations in the supply of
competitive drilling rigs. Such forward-looking statements are also subject
to certain risks and uncertainties as disclosed by the Company from time to
time in its filings with the Securities and Exchange Commission. As a result
of these factors, the Company's actual results may differ materially from
those indicated in or implied by such forward-looking statements.
R&B FALCON CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in millions except per share amounts)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
1998 1997 1998 1997
OPERATING REVENUES:
Deepwater $ 97.4 $ 80.7 $197.2 $160.6
Shallow water 110.2 78.9 217.2 146.8
Inland water 73.4 62.6 146.0 117.9
Total operating revenues 281.0 222.2 560.4 425.3
COSTS AND EXPENSES:
Deepwater 45.6 27.3 87.1 61.3
Shallow water 40.2 40.0 79.4 75.3
Inland water 46.1 34.1 85.4 68.3
Depreciation 22.6 19.2 43.5 37.7
General and administrative 14.6 10.3 28.1 21.6
Merger expenses --- --- (1.0) ---
Total costs and expenses 169.1 130.9 322.5 264.2
OPERATING INCOME 111.9 91.3 237.9 161.1
OTHER INCOME (EXPENSE):
Interest expense, net of
capitalized interest (15.2) (11.3) (29.1) (21.4)
Interest income 2.9 1.5 4.4 3.1
Other, net (0.3) (0.7) (0.4) (1.0)
Total other income
(expense) (12.6) (10.5) (25.1) (19.3)
INCOME FROM CONTINUING
OPERATIONS BEFORE INCOME
TAX EXPENSE, MINORITY
INTEREST AND EXTRAORDINARY
LOSS 99.3 80.8 212.8 141.8
INCOME TAX EXPENSE:
Current 5.6 11.1 12.4 19.4
Deferred 30.5 7.9 65.1 12.6
Total income tax expense 36.1 19.0 77.5 32.0
MINORITY INTEREST (2.8) (1.1) (5.1) (4.4)
INCOME FROM CONTINUING
OPERATIONS BEFORE
EXTRAORDINARY LOSS 60.4 60.7 130.2 105.4
LOSS FROM DISCONTINUED
OPERATIONS --- (16.7) --- (22.5)
EXTRAORDINARY LOSS,
NET OF TAXES (22.0) --- (22.0) ---
NET INCOME $ 38.4 $ 44.0 $108.2 $ 82.9
NET INCOME PER SHARE:
BASIC:
Continuing operations $ 0.37 $ 0.37 $ 0.79 $ 0.64
Discontinued operations --- (0.10) --- (0.13)
Extraordinary loss (0.13) --- (0.13) ---
Net income $ 0.24 $ 0.27 $ 0.66 $ 0.51
DILUTED:
Continuing operations $ 0.37 $ 0.37 $ 0.78 $ 0.64
Discontinued operations --- (0.10) --- (0.14)
Extraordinary loss (0.13) --- (0.13) ---
Net income $ 0.24 $ 0.27 $ 0.65 $ 0.50
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING:
BASIC 165.3 163.9 165.1 163.8
DILUTED 167.6 167.1 166.5 165.9
R&B FALCON CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in millions)
6/30/98 12/31/97
ASSETS:
Cash, cash equivalents and
short-term investments $ 132.6 $ 100.9
Other current assets 288.8 215.6
Net property and equipment 2,052.2 1,580.7
Other assets 57.6 31.2
TOTAL ASSETS $2,531.2 $1,928.4
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 273.0 $ 331.4
Long-term obligations 1,172.9 692.2
Other noncurrent liabilities 166.1 121.2
Minority interest 56.7 55.6
Stockholders' equity 862.5 728.0
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,531.2 $1,928.4
SOURCE R&B Falcon Corporation
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Related links:
http://www.rbfalcon.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 118988
CONTACT:
Mr. Charles R. Ofner of R&B Falcon
Corporation, 281-496-5000
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