Parker Drilling Reports on 3rd Quarter Earnings
Parker Drilling Company announced net income of $4.5 million, or $0.05 per share, on unaudited revenue of $128.9 million for the third quarter of 2001 before relocation costs for the company's move to Houston. Including relocation costs, unaudited net income was $3.0 million, or $0.03 per share. This compares to a net loss of $1.0 million, or $0.01 per share for the third quarter of 2000.
For the nine months ended September 30, 2001, net income was $12.1 million, or $0.13 per share, excluding relocation costs. Including relocation costs, unaudited net income was $7.2 million, or $0.08 per share. This compares to a net loss of $25.4 million, or $0.32 per share, for the corresponding period in 2000. In the current nine-month period, the company reported unaudited revenue of $376.7 million, up from $262.8 million in the first nine months of 2000.
"High dayrates and utilization in the Gulf of Mexico continued to drive our numbers for the quarter," said Robert L. Parker Jr., president and CEO. "A strong performance from our premium tool rental business, Quail Tools, also contributed to the improved results."
Average utilization for all classes of Parker Drilling's Gulf of Mexico rigs was 76% in the third quarter 2001 as compared to 84% in the second quarter 2001. In spite of the decline in utilization, revenues from Gulf of Mexico drilling operations were only slightly lower in the third quarter due to the timing of contract expirations. Since the end of the third quarter, jackup rig dayrates and utilizations have softened as operators reduced their exploration and development activities in response to lower natural gas prices. As a result, Gulf of Mexico drilling revenues are anticipated to be lower in the fourth quarter.
"At the same time, I am pleased with the increasing drilling activity in our international markets. We just signed a new joint venture agreement with Russia's Tyumen Oil Company to provide contract drilling services throughout Russia and announced a new contract in Peru. Rig 216 has arrived in Kazakhstan and is rigging up for operations, and we anticipate more announcements in the near future," Parker said.
Average international land rig utilization for the third quarter 2001 was 37% as compared to 41% for the second quarter. Utilization of international barge rigs was 98% in the third quarter and 100% in the second quarter. International revenue declined in the third quarter reflecting lower average utilization. Earnings before interest, taxes, depreciation and amortization (EBITDA) was $49.0 million for the third quarter of 2001 before relocation costs. This compares to EBITDA of $52.5 million for the second quarter of 2001 and $31.0 million for the third quarter of 2000.
Capital expenditures for the nine months ended September 30, 2001, were $90.3 million. They are projected to be approximately $110 million for 2001, with $24 million of the total slated for normal maintenance activity. The company's cash balance was $71.2 million at Sept. 30, 2001, and today is approximately $68 million. Long-term debt was $588.8 million at Sept. 30, 2001.
Parker Drilling has scheduled a conference call today at 10 a.m. CST to discuss third quarter results. To participate by telephone, call (303) 262-2175 10 minutes prior to the starting time. The reservation number is 397564. A replay of the call will be available from noon CST today until noon Nov. 7, 2001. The access number for the replay is (303) 590-3000 and the pass code is 397564. The call also will be Web cast live on the Internet through the company's Web site at www.parkerdrilling.com.