Parker Drilling Reports Third Quarter Results
Parker Drilling Company announced a net loss of $8.0 million, or $0.09 per share, on revenues of $100.1 million for the third quarter of 2002. This compares to net income of $3.0 million or $0.03 per diluted share on revenues of $128.9 million for the third quarter of 2001.
For the first nine months of 2002, Parker Drilling reported revenues of $294.1 million and a net loss of $103.7 million, or $1.12 per share, which includes a $73.1 million, or $0.79 per share, cumulative effect of Parker Drilling's adoption of Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets." For the first nine months of 2001, Parker Drilling reported net income of $7.2 million or $0.08 per diluted share on revenues of $376.7 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $30.8 million for the third quarter of 2002. This compares to EBITDA of $25.4 million for the second quarter of 2002, and $46.7 million for the third quarter of 2001.
"While Gulf of Mexico dayrates for our deep barge and jackup drilling rigs improved slightly in the third quarter, utilization of these rigs was near 100 percent throughout the third quarter, up significantly from the second quarter," said Robert L. Parker Jr., president and chief executive officer. "International dayrates and utilization remained level with the second quarter. A significant contributor to our improved performance in the third quarter was the cost reduction effort we have implemented in both U.S. and international operations.
"We anticipate increases in Gulf of Mexico activity in 2003, and, given the amount of customer interest, significant improvements in our international land rig utilization next year," Parker said.
High utilization of the deep barge and jackup rigs has been somewhat offset by lower activity in the intermediate and workover barges and platform rigs, resulting in an average utilization of the Gulf of Mexico fleet of 55 percent today. Average fleet utilization for the third quarter was 58 percent compared to 54 percent in the second quarter.
Utilization of the company's international land rigs currently is 37 percent. Average utilization was 37 percent in the third quarter of 2002 compared to 40 percent for the second quarter of 2002.
Capital expenditures for the three months and nine months ended Sept. 30, 2002, were $11.1 million and $39.2 million, respectively. Total debt was $590.5 million at Sept. 30, 2002, and the company's cash balance was $32.4 million.
Based on the third quarter performance and projected fourth quarter results the company is providing the following guidance ranges on revenues, EBITDA and earnings. Revenues for the year will be between $390 and $400 million. EBITDA will be between $110 and $115 million, resulting in a loss of $40 million plus or minus 5 percent before the change in accounting principle. Overall financial results for the fourth quarter are expected to approximate the results reported for the third quarter.