HOUSTON, Nov. 1 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC)
reported a loss from continuing operations of $22.4 million for the three
months ended September 30, 1999, compared with a loss from continuing
operations of $28.2 million for the three months ended September 30, 1998.
The net loss applicable to common stockholders for the current quarter of
$34.5 million ($.18 per diluted share) includes dividends of $12.1 million on
the redeemable preferred stock that was issued in April. Net loss applicable
to common stockholders for the comparable quarter of the prior year,
$20.5 million ($.12 per diluted share), includes $7.7 million ($.05 per
diluted share) of income due to the recontinuance of discontinued operations.
Operating income for the quarter ended September 30, 1999 was $3.9 million on
revenues of $214.2 million compared to an operating loss for the quarter
ended September 30, 1998 of $23.2 million on revenues of $243.5 million.
Operating income for the third quarter of 1999 includes non-recurring charges
of $25.6 million for asset impairment write-down and a $6.1 million loss on
the sale of assets following cancellation of 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.
The loss applicable to common stockholders for the nine months ended
September 30, 1999 of $56.2 million ($.29 per diluted share) includes
dividends of $21.2 million on the redeemable preferred stock that was issued
in April and a $1.7 million ($.01 per diluted share) extraordinary loss
related to the early extinguishment of debt. Net income applicable to common
stockholders for the comparable period of the prior year, $87.7 million
($.53 per diluted share), includes a $22.0 million ($.13 per diluted share)
extraordinary loss relating to the early extinguishment of debt and
$16.5 million ($.10 per diluted share) income due to the recontinuance of
discontinued operations. Operating income for the nine months ended
September 30, 1999 was $45.6 million on revenues of $684.5 million compared to
operating income for the nine months ended September 30, 1998 of
$204.7 million on revenues of $803.9 million.
The loss for the quarter is directly attributable to reduced demand for
drilling services, particularly in the shallow and inland water segments.
Average fleet utilization for the third quarter of 1999 was 39% compared to
64% for the same quarter in the preceding year. For the nine months ended
September 30, 1999 average fleet utilization was 40% compared to 77% for the
same period in 1998.
Revenues were $29.3 million lower in the third quarter of 1999 compared to
the same quarter in the preceding year despite contributions of $62.0 million
from Cliffs Drilling Company which was acquired in December, 1998. Revenue
decreases were primarily related to the shallow water and inland water
segments and resulted from lower dayrates and rig utilization.
Operating expenses were $56.4 million lower in the current quarter than in
the same quarter of the prior year. Excluding $57.4 million of third quarter
operating expenses attributable to Cliffs Drilling Company, operating expenses
were $113.8 million lower in the third quarter of 1999 compared to the same
quarter of the prior year and reflects cost reductions, lower rig utilization
and the cold stacking of some units, primarily in the shallow water and inland
water segments.
Interest expense, net of capitalized interest for the three months ended
September 30, 1999, increased $31.3 million compared to the three months ended
September 30, 1998 due to higher debt levels and increased average interest
rates. There was also a $10.3 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, "The industry's depressed condition this quarter was reflected in our
reporting a loss for the period. Net of non-recurring items, the earnings per
share this quarter would have been a loss of $.13 per share. However, we are
starting to see some improvements in day rates and utilization, particularly
in the shallow water market in the Gulf of Mexico. These increases are very
encouraging and continued strength in commodity prices should ultimately lead
to a substantial improvement in demand for drilling rigs. We believe R&B
Falcon, with the largest fleet of drilling rigs in the industry, will be the
leading beneficiary as the demand for drilling improves. While it will take
several more quarters before current and projected improved dayrates and
utilization flow through our income statement, we believe patient investors
will be well rewarded."
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 NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1999 1998 1999 1998
OPERATING REVENUES:
Deepwater $93.6 $100.9 $270.1 $297.9
Shallow water 41.0 88.8 156.1 306.0
Inland water 28.3 53.7 84.7 199.7
Engineering services and land
operations 51.2 0.1 173.4 0.3
Development 0.1 --- 0.2 ---
Total operating revenues 214.2 243.5 684.5 803.9
COSTS AND EXPENSES:
Deepwater 43.0 52.2 126.4 140.3
Shallow water 34.2 40.0 116.2 119.6
Inland water 9.6 41.8 65.6 126.0
Engineering services and land
operations 37.9 0.2 126.9 0.4
Development 0.2 7.6 2.5 15.6
Cancellation of conversion
projects 31.7 85.8 31.7 85.8
Depreciation and amortization 39.7 24.1 114.3 68.1
General and administrative 14.0 15.0 55.3 44.4
Merger expenses --- --- --- (1.0)
Total costs and expenses 210.3 266.7 638.9 599.2
OPERATING INCOME (LOSS) 3.9 (23.2) 45.6 204.7
OTHER INCOME (EXPENSE):
Interest expense, net of
capitalized interest (45.2) (13.9) (116.5) (43.0)
Interest income 9.7 2.6 24.6 7.6
Income from equity investees
plus related income 2.7 --- 9.0 ---
Other, net (0.4) (0.3) (0.7) (0.1)
Total other income (expense) (33.2) (11.6) (83.6) (35.5)
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES,
MINORITY INTEREST AND
EXTRAORDINARY LOSS (29.3) (34.8) (38.0) 169.2
INCOME TAX EXPENSE (BENEFIT):
Current 11.4 16.5 30.0 28.9
Deferred (22.1) (26.2) (43.8) 38.9
Total income tax expense
(benefit) (10.7) (9.7) (13.8) 67.8
MINORITY INTEREST (3.8) (3.1) (9.1) (8.2)
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE EXTRAORDINARY
LOSS (22.4) (28.2) (33.3) 93.2
INCOME FROM DISCONTINUED
OPERATIONS --- 7.7 --- 16.5
EXTRAORDINARY LOSS, NET OF TAX
BENEFIT --- --- (1.7) (22.0)
NET INCOME (LOSS) (22.4) (20.5) (35.0) 87.7
DIVIDENDS AND ACCRETION ON
PREFERRED STOCK 12.1 --- 21.2 ---
NET INCOME (LOSS) APPLICABLE TO
COMMON STOCKHOLDERS $(34.5) $(20.5) $(56.2) $87.7
NET INCOME (LOSS) PER COMMON SHARE:
BASIC:
Continuing operations $(0.18) $(0.17) $(0.28) $0.56
Discontinued operations --- 0.05 --- 0.10
Extraordinary loss --- --- (0.01) (0.13)
Net income (loss) $(0.18) $(0.12) $(0.29) $0.53
DILUTED:
Continuing operations $(0.18) $(0.17) $(0.28) $0.56
Discontinued operations --- 0.05 --- 0.10
Extraordinary loss --- --- (0.01) (0.13)
Net income (loss) $(0.18) $(0.12) $(0.29) $0.53
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING:
BASIC 192.8 165.3 192.6 165.2
DILUTED 192.8 165.3 192.6 166.4
R&B FALCON CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in millions)
9/30/99 12/31/98
ASSETS:
Cash, cash equivalents and short-term investments $862.8 $177.4
Less cash dedicated to capital projects(A) (184.8) ---
Other current assets 321.9 361.1
Net property and equipment 3,489.9 3,030.9
Other assets 423.0 144.6
TOTAL ASSETS $4,912.8 $3,714.0
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $276.2 $353.2
Long-term obligations 2,942.6 1,866.2
Other noncurrent liabilities 135.8 181.6
Minority interest 52.5 62.8
Preferred stock 256.3 ---
Stockholders' equity 1,249.4 1,250.2
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $4,912.8 $3,714.0
(A) 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
|
