HOUSTON, Aug. 1 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC)
reported a net loss of $29.3 million for the three months ending
June 30, 2000, compared with a net loss of $14.2 million for the corresponding
period in 1999. The net loss applicable to common stockholders was
$42.6 million ($.22 per diluted share) for the current quarter and includes
dividends of $13.3 million on redeemable preferred stock issued in
April, 1999. Net loss applicable to common stockholders for the same period
in 1999 was $23.3 million ($.12 per diluted share), including dividends of
$9.1 million on the preferred stock. Operating income for the second quarter
of 2000 was $8.4 million on revenues of $211.9 million compared to operating
income of $9.1 million on revenues of $226.5 million in the second quarter of
1999.
For the six months ending June 30, 2000, the net loss applicable to common
stockholders was $94.6 million ($.49 per diluted share), including preferred
stock dividends of $26.2 million, compared to a net loss applicable to common
stockholders of $21.7 million ($.11 per diluted share) for the corresponding
period in 1999. The results for the six months ending June 30, 1999 includes
an extraordinary loss of $1.7 million ($.01 per diluted share) for charges
relating to the early extinguishment of debt and includes dividends of
$9.1 million on the preferred stock issued in April, 1999. Operating income
through June 30, 2000, was $1.2 million on revenues of $419.4 million compared
to operating income of $41.8 million on revenues of $470.3 million for the
same period in 1999.
Operating income for the second quarter of 2000 was slightly below the
comparable period in 1999 primarily due to lower earnings in the Engineering
Services segment but were largely offset by higher earnings from the Shallow
Water and Inland Water segments and lower general and administrative expenses.
Decreased earnings in the Engineering Services segment reflect lower
international turnkey drilling activity following contract completion in
April, 2000. Significantly higher rig utilization in the domestic jackup and
inland barge markets resulted in improved earnings in the Shallow Water and
Inland Water segments. Average fleet utilization for the second quarter of
2000 was 42% compared to 39% for the same quarter in the preceding year. The
decrease in general and administrative expenses is primarily due to corporate
restructuring, the costs of which were accrued in the second quarter of 1999.
Interest expense, net of capitalized interest, for the three months ended
June 30, 2000, was $50.6 million compared to $43.0 million for the three
months ended June 30, 1999 due to higher debt levels and average interest
rates. Capitalized interest for the current quarter decreased by $3.0 million
over the comparable period in 1999 due to lower investment in the Company's
deep water construction program as it approaches completion.
Paul B. Loyd, Jr., the Company's Chairman and Chief Executive Officer,
said, "Increasing rig utilization and higher day rates, particularly in the
gas-driven domestic shallow and inland water markets, are the main factors
which resulted in improved operating income in the second quarter following
the low point of our earnings cycle in the prior quarter. Notwithstanding the
net loss for this quarter, which was in line with our expectations, we will
continue to see successive improvements in quarterly results. As demand
strengthens for natural gas drilling in the Gulf of Mexico we will continue
reactivating our shallow water jackups and drill barges in response to a trend
that will ultimately result in full utilization. We also expect earnings
growth in subsequent quarters from the Deepwater segment following the recent
startup of our new Deepwater Nautilus and Deepwater Navigator units under
long-term contracts, as well as higher sustained utilization of our existing
fleet in the ultra-deepwater markets of the U.S., Brazil, West Africa, and
North Sea. Our two remaining vessels under construction, the Deepwater
Discovery and the Deepwater Horizon, will commence their long-term contracts
during the third quarter 2000 and the first quarter 2001, respectively. 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 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 rigs and an offshore towing business.
This communication contains forward-looking statements that are based upon
utilization, day rate and business condition assumptions that the Company
currently believes are reasonable and achievable. The Company can give no
assurance that such assumptions will prove to have been correct. Therefore,
actual results could differ materially from the information presented. The
Company's periodic reports filed with the Securities and Exchange Commission
should be consulted for a description of risk factors associated with an
investment in the Company.
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,
2000 1999 2000 1999
OPERATING REVENUES:
Deepwater $88.1 $86.3 $158.5 $176.5
Shallow water 56.7 47.8 101.8 114.6
Inland water 32.7 25.9 59.2 56.9
Engineering
services and
land operations 31.6 66.4 95.2 122.2
Development 2.8 0.1 4.7 0.1
Total operating
revenues 211.9 226.5 419.4 470.3
COSTS AND EXPENSES:
Deepwater 47.9 40.0 93.0 83.3
Shallow water 41.6 33.3 73.8 81.6
Inland water 26.1 28.8 53.5 56.7
Engineering services
and land operations 26.5 50.7 77.0 89.0
Development 1.2 1.2 2.0 2.2
Depreciation and
amortization 45.0 38.3 89.2 74.8
General and
administrative 15.2 25.1 29.7 40.9
Total costs and
expenses 203.5 217.4 418.2 428.5
OPERATING INCOME 8.4 9.1 1.2 41.8
OTHER INCOME (EXPENSE):
Interest expense,
net of capitalized
interest (50.6) (43.0) (102.5) (71.4)
Interest income 7.7 10.3 16.9 14.9
Income (loss) from
equity investees
plus related income (5.2) 5.7 (8.8) 6.3
Other, net 0.6 (0.1) 0.2 (0.3)
Total other income
(expense) (47.5) (27.1) (94.2) (50.5)
LOSS BEFORE INCOME TAXES,
MINORITY INTEREST
AND EXTRAORDINARY
LOSS (39.1) (18.0) (93.0) (8.7)
INCOME TAX EXPENSE (BENEFIT):
Current 14.7 10.8 12.6 18.6
Deferred (26.0) (17.2) (40.5) (21.7)
Total income tax
expense (benefit) (11.3) (6.4) (27.9) (3.1)
MINORITY INTEREST (1.5) (2.6) (3.3) (5.3)
LOSS BEFORE EXTRAORDINARY
LOSS (29.3) (14.2) (68.4) (10.9)
EXTRAORDINARY LOSS, NET
OF TAX BENEFIT --- --- --- (1.7)
NET LOSS (29.3) (14.2) (68.4) (12.6)
DIVIDENDS AND ACCRETION
ON PREFERRED STOCK 13.3 9.1 26.2 9.1
NET LOSS APPLICABLE TO
COMMON STOCKHOLDERS $(42.6) $(23.3) $(94.6) $(21.7)
NET LOSS PER COMMON
SHARE:
BASIC:
Loss before
extraordinary loss
and after preferred
stock dividends $(0.22) $(0.12) $(0.49) $(0.10)
Extraordinary loss --- --- --- (0.01)
Net loss $(0.22) $(0.12) $(0.49) $(0.11)
DILUTED:
Loss before
extraordinary loss
and after
preferred stock
dividends $(0.22) $(0.12) $(0.49) $(0.10)
Extraordinary loss --- --- --- (0.01)
Net loss $(0.22) $(0.12) $(0.49) $(0.11)
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
BASIC 193.5 192.6 193.2 192.5
DILUTED 193.5 192.6 193.2 192.5
R&B FALCON CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in millions)
06/30/2000 12/31/1999
ASSETS:
Cash, cash equivalents and
short-term investments $427.0 $717.0
Less cash dedicated to capital
projects* (67.6) (160.4)
Other current assets 296.3 316.3
Net property and equipment 3,748.4 3,635.2
Other assets 344.2 413.8
TOTAL ASSETS $4,748.3 $4,921.9
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $295.9 $358.6
Long-term obligations 2,910.3 2,933.4
Other noncurrent liabilities 59.8 92.9
Minority interest 58.2 56.6
Preferred stock 302.0 276.0
Stockholders' equity 1,122.1 1,204.4
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $4,748.3 $4,921.9
* Classified as other assets
SOURCE R&B Falcon Corporation
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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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