Parker Drilling Reports Fourth Quarter Results
Parker Drilling Company
|Tuesday, February 08, 2005
Parker Drilling Company (NYSE: PDK) reported fourth quarter revenues of $109.8 million and a net loss of $5.3 million or $0.06 per share, compared to a net loss of $12.4 million or $0.13 per share, on revenues of $91.6 million for the fourth quarter of 2003. The fourth quarter loss from continuing operations was $2.2 million, or $0.03 per share, compared to a loss of $15.2 million, or $0.16 per share, for the fourth quarter a year ago.
The fourth quarter of 2004 included a number of non-routine items which negatively impacted earnings by $8.3 million or $0.09 per share, of which $4.2 million, or $0.05 per share, was attributable to continuing operations. Absent the $4.2 million of non-routine items, income from continuing operations would have been a positive $2.0 million, or $0.02 per share. The $4.2 million of non-routine items for continuing operations includes a $6.5 million provision primarily related to reduction in the carrying value of four international land rigs and two U.S. barge rigs partially offset by a $2.3 million gain on disposition of assets primarily related to barge rig 74 in Nigeria. Discontinued operations reflect a $4.1 million loss on jackup rig 25 which was sold in January 2005. Excluding this loss, results from discontinued operations would have reflected income of $1.0 million, or $0.01 per share.
For 2004, Parker Drilling reported revenues of $376.5 million and a net loss of $47.1 million, or $0.50 per share. This compares to revenues of $338.7 million and a net loss of $109.7 million, or $1.17 per share, for 2003 which included an impairment for assets held for sale of $54.0 million, or $0.58 per share. The loss from continuing operations for 2004 was $50.6 million, or $0.54 per share compared to a loss from continuing operations of $52.4 million, or $0.56 per share, for 2003.
Excluding non-routine items, the Company's 2004 loss would have been $18.2 million, or $0.20 per share. Non-routine items in 2004 reduced earnings $28.9 million, or $0.30 per share, including $24.8 million, or $0.26 per share, attributable to continuing operations and $4.1 million, or $0.04 per share, attributable to discontinued operations. The non-routine items include: $8.3 million in the fourth quarter detailed above; an $8.2 million loss from extinguishing $80 million of 10.125% Senior Notes and $70 million of a Term Loan with proceeds from issuing $150 million of Senior Floating Rate Notes; $6.6 million provision for reduction in carrying value of certain assets, which includes reclassifying Latin American operations from discontinued to continuing operations and an adjustment to a life insurance policy; $2.3 million for an additional value added tax assessment in Nigeria; $2.1 million for taxes assessed by the Mangistau Customs Control in connection with the temporary import status of barge rig 257 in the Caspian Sea and $1.4 million relating to severance costs.
Fourth quarter average rig utilization, before and after the reduction of seven rigs to the marketable rig count, is reflected in the following table:
Utilization Before Reduction Utilization After Reduction 2004 2004 Marketable 4th 3rd Marketable 4th 3rd Rigs Qtr. Qtr. Current Rigs Qtr. Qtr. Current International Land 38 58% 54% 61% 34 65% 61% 68% International Offshore 6 45% 33% 67% 5 54% 40% 80% Gulf of Mexico 20 71% 66% 70% 18 79% 74% 78% TOTAL 64 61% 56% 64% 57 68% 63% 72%
"Parker Drilling finished a year of transition with the best quarter for operations since 2001," said Robert L. Parker, Jr., president and chief executive officer. "With $135 million of debt paid down including $25 million yesterday, a strong new chief operating officer in Dave Mannon and current utilization of our existing rigs at 72%, Parker is well positioned to be profitable in 2005."
Capital expenditures in 2004 totaled $47.3 million. Debt totaled $481.1 million at December 31, 2004, and the Company's cash balance was $44.3 million.
Parker Drilling reaffirms its previously released guidance of net income per share of $0.05 to $0.14 for 2005.