Parker Drilling Reports Strong Second Quarter Earnings
Parker Drilling Company (NYSE: PKD) reported net income of $20.2 million, or $0.21 per diluted share, on revenues of $134.0 million for the second quarter ended June 30, 2005, compared to a net loss of $13.5 million or $0.14 per share on revenues of $87.9 million for the second quarter of 2004. The current quarter includes $7.6 million of net income or $0.08 per diluted share for the following non-routine items:
* $8.2 million gain relating to the well-control incident and total loss of rig 255 in Bangladesh, * $4.2 million after-tax gain on the sale of four South America land rigs, * ($3.3) million call premium expense paid on debt extinguishment, and, * ($1.5) million expense relating to the change in fair value of interest derivatives.
For the first six months of 2005, Parker Drilling reported revenues of $254.2 million and net income of $24.1 million or $0.25 per diluted share compared to revenues of $178.8 million and a net loss of $18.4 million or $0.20 per share for the first six months of 2004.
The average utilization of international land rigs for the second quarter of 2005 was 71 percent, which is significantly higher than the 48 percent reported for the second quarter of 2004. Current utilization is 79 percent for international land rigs. Average utilization for the Gulf of Mexico barge rigs for the second quarter of 2005 was 79 percent, which is an increase from the 67 percent reported for the second quarter of 2004. Current utilization remains at 79 percent for Gulf of Mexico barge rigs. Dayrates on Gulf of Mexico barges averaged approximately $4,500 per day higher in the second quarter of 2005 when compared to the second quarter of 2004.
Capital expenditures for the six months ended June 30, 2005, were $32.6 million. Total debt was $446.1 million at June 30, 2005 and the Company's cash balance was $71.0 million.
"The significant improvement in earnings for the quarter was driven by
record dayrates for our barge rigs in the Gulf of Mexico and record gross
margins for our Quail Tools' rental divisions. Our international operations
also continue to improve. In addition, we have now achieved 90% of our debt
reduction goal of $200 million with the redemption of $30 million of our
outstanding debt on July 18," said Robert L. Parker Jr., president and chief