HOUSTON, Oct. 25 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC)
reported net income of $27.3 million for the three months ending
September 30, 2000, compared with a net loss of $22.4 million for the
corresponding period in 1999. Net income applicable to common stockholders
for the third quarter was $13.7 million ($.07 per diluted share) after
preferred stock dividends of $13.6 million compared to a net loss applicable
to common shareholders of $34.5 million ($.18 per diluted share) after
preferred dividends of $12.1 million for the same period in 1999. Results for
the current quarter include a net gain of $.18 per share on the previously
announced sale of the Company's oil and gas properties in the Gulf of Mexico
and a net impairment charge of $.02 per share for estimated future losses on
the Company's drilling contract for the Deepwater Frontier. Excluding the
effect of these two non-recurring items, the Company would have reported a net
loss of $.09 per diluted share for the third quarter.
For the nine months ending September 30, 2000, the Company reported a net
loss applicable to common stockholders of $80.9 million ($.42 per diluted
share) after preferred stock dividends of $39.8 million compared to a net loss
applicable to common stockholders of $56.2 million ($.29 per diluted share)
for the corresponding period in 1999. The results for the nine months ending
September 30, 1999, include an extraordinary loss of $1.7 million ($.01 per
diluted share) for charges relating to the early extinguishment of debt and
include preferred stock dividends of $21.2 million.
Operating income for the third quarter of 2000 was $122.1 million on
revenues of $301.7 million compared to operating income of $3.8 million on
revenues of $214.2 million in the third quarter of 1999. Operating income in
the third quarter of 1999 included charges of $31.7 million for asset
impairment write-down and loss on the sale of assets following cancellation of
drill ship conversion projects, partially offset by a gain of $16.1 million on
an insurance settlement related to the physical loss of an inland barge
drilling rig. Operating income through September 30, 2000, was $123.3 million
on revenues of $721.1 million compared to operating income of $45.6 million on
revenues of $684.5 million for the same period in 1999.
Excluding the non-recurring gains and charges in each period, operating
income for the third quarter of 2000 increased to $54.1 million compared to
$19.4 million for the third quarter of 1999 due to higher earnings in the
Deepwater, Shallow Water and Inland Water segments. The improvement in
Deepwater segment earnings is attributable to higher rig utilization and the
startup of the new build Deepwater Nautilus vessel in late June.
Significantly higher day rates in the domestic offshore jackup and inland
barge markets as well as increased rig utilization resulted in improved
earnings in the Shallow Water and Inland Water segments. Average fleet
utilization for the third quarter of 2000 was 49% compared to 39% for the same
quarter in the preceding year.
Interest expense, net of capitalized interest, for the three months ended
September 30, 2000, was $60.7 million compared to $45.1 million for the three
months ended September 30, 1999 due primarily to lower capitalized interest.
Capitalized interest for the current quarter decreased by $13.5 million over
the comparable period in 1999 as a result of lower investment in the Company's
deep water construction program as it nears completion.
Paul B. Loyd, Jr., the Company's Chairman and Chief Executive Officer,
said, "During the third quarter R&B Falcon continued to achieve higher rig
utilization and day rates across our fleet, which resulted in substantial
growth in operating income from the previous quarter. Strong commodity prices
and improving market fundamentals indicate continued high demand for drilling
services particularly in the gas-driven domestic shallow and inland water
markets, a major growth area that should contribute to successive improvements
in quarterly results. During this quarter, we relocated two jackup rigs from
the international market to the Gulf of Mexico, both of which are operating.
Two additional jackups and three barge rigs were also placed into service
during the quarter as our rig reactivation program continues in response to
the strong market demand. In our Deepwater segment, higher sustained fleet
utilization and the startup of our remaining new build rigs on long-term
contracts in the ultra deep water market should provide significant earnings
contribution for the foreseeable future. We remain confident that R&B Falcon,
with the largest fleet of drilling rigs in the industry, will be the leading
beneficiary as worldwide demand for drilling improves over the anticipated
extended growth period."
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 138 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.
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 NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000 1999
OPERATING REVENUES:
Deepwater $128.6 $93.6 $287.1 $270.1
Shallow water 76.2 40.7 178.0 155.3
Inland water 40.2 28.6 99.4 85.5
Engineering services
and land operations 56.9 51.2 152.1 173.4
Development (0.2) 0.1 4.5 0.2
Total operating
revenues 301.7 214.2 721.1 684.5
COSTS AND EXPENSES:
Deepwater 61.7 42.9 154.7 126.2
Shallow water 44.4 33.7 118.2 115.3
Inland water 27.8 10.1 81.3 66.8
Engineering services
and land operations 46.5 37.9 123.5 126.9
Development (67.2) 0.3 (65.2) 2.5
Cancellation of
conversion projects --- 31.7 --- 31.7
Depreciation and
amortization 50.1 39.9 139.3 114.7
General and
administrative 16.3 13.9 46.0 54.8
Total costs and
expenses 179.6 210.4 597.8 638.9
OPERATING INCOME 122.1 3.8 123.3 45.6
OTHER INCOME (EXPENSE):
Interest expense, net
of capitalized
interest (60.7) (45.1) (163.2) (116.5)
Interest income 6.3 9.7 23.2 24.6
Income (loss) from
equity investees
plus related income (10.4) 2.7 (19.2) 9.0
Other, net (0.3) (0.4) (0.1) (0.7)
Total other income
(expense) (65.1) (33.1) (159.3) (83.6)
INCOME (LOSS) BEFORE
INCOME TAXES, MINORITY
INTEREST AND
EXTRAORDINARY LOSS 57.0 (29.3) (36.0) (38.0)
INCOME TAX EXPENSE
(BENEFIT):
Current 5.6 11.4 18.2 30.0
Deferred 14.0 (22.1) (26.5) (43.8)
Total income tax
expense (benefit) 19.6 (10.7) (8.3) (13.8)
MINORITY INTEREST (10.1) (3.8) (13.4) (9.1)
INCOME (LOSS) BEFORE
EXTRAORDINARY LOSS 27.3 (22.4) (41.1) (33.3)
EXTRAORDINARY LOSS, NET
OF TAX BENEFIT --- --- --- (1.7)
NET INCOME (LOSS) 27.3 (22.4) (41.1) (35.0)
DIVIDENDS AND ACCRETION
ON PREFERRED STOCK 13.6 12.1 39.8 21.2
NET INCOME (LOSS)
APPLICABLE TO COMMON
STOCKHOLDERS $13.7 $(34.5) $(80.9) $(56.2)
NET INCOME (LOSS) PER
COMMON SHARE:
BASIC:
Income (loss) before
extraordinary loss
and after preferred
stock dividends $0.07 $(0.18) $(0.42) $(0.28)
Extraordinary loss --- --- --- (0.01)
Net income (loss) $0.07 $(0.18) $(0.42) $(0.29)
DILUTED:
Income (loss) before
extraordinary loss
and after preferred
stock dividends $0.07 $(0.18) $(0.42) $(0.28)
Extraordinary loss --- --- --- (0.01)
Net income (loss) $0.07 $(0.18) $(0.42) $(0.29)
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
BASIC 194.2 192.8 193.6 192.6
DILUTED 206.8 192.8 193.6 192.6
R&B FALCON CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in millions)
09/30/2000 12/31/1999
ASSETS:
Cash, cash equivalents and
short-term investments $353.6 $717.0
Less cash dedicated to
capital projects* (20.7) (160.4)
Other current assets 377.2 316.3
Net property and equipment 3,830.9 3,635.2
Other assets 299.5 413.8
TOTAL ASSETS $4,840.5 $4,921.9
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $330.5 $358.6
Long-term obligations 2,901.3 2,933.4
Other noncurrent liabilities 72.3 92.9
Minority interest 67.3 56.6
Preferred stock 315.7 276.0
Stockholders' equity 1,153.4 1,204.4
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $4,840.5 $4,921.9
*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
|
