The company estimates that hurricanes Katrina and Rita had an unfavorable impact on its third quarter 2005 net income of $12.0 million, or 5 cents per diluted share.
"Our third quarter results reflect improved pricing and robust demand for our contract drilling services worldwide," said GlobalSantaFe President and CEO Jon Marshall. "Continuing demand growth, combined with recent attrition in the worldwide drilling fleet, is stimulating significant dayrate increases and greater urgency among customers to secure future rig time."
For the nine months ended Sept. 30, 2005, GlobalSantaFe reported net income of $242.9 million, or 99 cents per diluted share, on revenues of $1.7 billion. These results compare with income from continuing operations of $38.9 million, or 16 cents per diluted share, in the first nine months of 2004. Net income from continuing operations for the first nine months of 2004 included a net after-tax gain of $16.7 million, or 7 cents per diluted share, related to the early retirement of debt, an insurance settlement and an asset sale.
Third Quarter Analysis
The improved financial performance in the third quarter of 2005 reflects a $91.3 million, or 210 percent, increase in contract drilling operating income to $134.8 million from $43.5 million in the third quarter of 2004. The average dayrate for the company's fleet of jackup and floating rigs in the third quarter of 2005 increased 24 percent to $81,600 from $65,900 in the same quarter of 2004. Utilization of available rig days rose to 98 percent in the third quarter of 2005 from 87 percent in the third quarter of last year.
In the third quarter of 2005, the company's drilling management services and oil and gas segments reported combined operating income of $9.0 million, compared with a loss of $2.7 million in the third quarter of 2004. The increase in combined operating income primarily reflects improved operating performance on turnkey projects, higher oil and gas prices and increased oil production.
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