Parker Drilling Expects $8 Million Charge in 2nd Quarter
|Friday, July 09, 2004
Parker Drilling (NYSE: PKD) said it expects to take about $8 million in one-time charges in the second quarter for impairment of its Latin America assets and severance. However, the company still expects to report second-quarter results in line with First Call estimates of a loss of 5 cents a share for ongoing operations.
Most of the charges are for reclassifying 16 land rigs in Latin America the company had been hoping to sell to continuing operations from discontinued operations.
Seven of the rigs are being reclassified because the company has decided to keep them and move then to drill in Mexico, where it has been awarded new land drilling contracts. A deal to buy the remaining rigs has fallen through, so they are being reclassified to continuing operations until another buyer emerges.
The rest of the one-time charge is for severance costs for former Chief Operating Officer Robert Nash, who left the company last month.