Parker Drilling Reports Second Quarter Results

For the quarter ended June 30, 2004, Parker Drilling Company (NYSE: PKD) reported revenues of $87.9 million and a net loss of $13.5 million, or $0.14 per share, compared to a net loss of $74.4 million or $0.80 per share on revenues of $79.7 million for the second quarter of 2003. The loss from continuing operations for the second quarter of 2004 was $16.0 million or $0.17 per share compared to a loss from continuing operations of $16.4 million or $0.18 per share for the second quarter of 2003.

Included in the second quarter loss were non-routine costs totaling $10.3 million or $0.11 per share. Reported earnings for both current year and prior year reflect a reclassification of Latin America Operations from discontinued operations to continuing operations due primarily to the Company obtaining a new contract in Mexico utilizing seven of the rigs previously classified as discontinued operations. The reclassification resulted in an impairment of $5.1 million during the second quarter of 2004. In addition, the Company also incurred other non-routine costs including personnel severance costs, an adjustment to a life insurance asset and an additional Value Added Tax assessment in Nigeria.

For the first six months of 2004, Parker Drilling reported revenues of $178.8 million and a net loss of $18.4 million or $0.20 per share. For the first six months of 2003, Parker Drilling reported revenues of $164.2 million and a net loss of $90.6 million or $0.98 per share, which included a $54.0 million or $0.58 per share impairment for assets held for sale. The loss from continuing operations for the first six months of 2004 was $23.6 million or $0.25 per share compared to a loss from continuing operations of $28.5 million or $0.31 per share for the first six months of 2003.

Second quarter average utilization of international land rigs rose to 43 percent from 41 percent during the first quarter of 2004, a significant increase from the 25 percent reported for the second quarter of 2003. International land rig utilization reflects a reclassification of Latin America Operations from discontinued operations to continuing operations. Average utilization of Parker Drilling's Gulf of Mexico barge rigs also increased during the second quarter of 2004 to 60 percent, compared to an average utilization of 56 percent in the first quarter of 2004 and 55 percent for the second quarter of 2003. Current utilization has since increased to 70 percent for the Gulf of Mexico barge rigs.

Capital expenditures for the six months ended June 30, 2004, were $15.7 million. Total debt was $525.8 million at June 30, 2004, and the Company's cash balance was $42.3 million.
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