For the nine months ended September 30, 2005, the Company reported net income of $153.4 million, or $1.14 per share on a diluted basis, compared to a net loss of $18.5 million, or $0.14 per share on a diluted basis for the same period in 2004. Revenue for the nine months ended September 30, 2005 was $852.7 million, compared to $577.3 million for the first nine months of 2004.
Results for the third quarter of 2005 reflect the impact of hurricanes Katrina and Rita. The Company recorded a third quarter after-tax gain of $21.8 million, or $0.16 per diluted share, related to insurance proceeds from the previously reported casualty loss of the 300-ft. jack-up Ocean Warwick. Other damage to the fleet resulted in hurricane related after-tax costs of $2.6 million, or $0.02 per diluted share, which were reported within operating expenses. Exclusive of the Warwick, the Company experienced a total of 41.5 days of contractual downtime in the third quarter directly related to the two hurricanes and expects to experience approximately an additional 110 days of contractual downtime in the fourth quarter of 2005 for storm related repairs. At this time, all of the damaged rigs have returned to work at their drilling locations, with the exception of the Ocean Star, which is expected to return to service in mid November. In addition, reactivation of the Ocean New Era has been delayed by approximately three weeks until mid December.
Larry Dickerson, President and Chief Operating Officer, said, "We are happy to report that all of our employees have been accounted for in the aftermath of the storms and feel fortunate to have suffered relatively minor damage to our fleet, with the exception of the Warwick. In addition, exclusive of the impacts of the two hurricanes, we are pleased with our improved operating results for the third quarter, which are indicative of the rising dayrates and continuing strength of the worldwide offshore drilling market. We remain confident in our market position, and believe that our current exposure to the increasingly under-supplied jack-up sector in the Gulf of Mexico, as well as to the global semisubmersible market in late 2006 and in 2007, will allow the Company to participate in any future market improvements."
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