Parker Drilling Reports 45% Increase in Revenues for the Third Quarter
Parker Drilling (NYSE: PKD) reported net income of $18.1 million, or $0.18 per diluted share, on revenues of $127.9 million for the third quarter ended September 30, 2005, compared to a net loss of $23.4 million or $0.25 per share on revenues of $87.9 million for the third quarter of 2004. Net income in the current quarter includes $3.2 million or $0.03 per diluted share related to the following non-routine items:
* $5.9 million gain on the sale of three South America land rigs, * $1.5 million gain relating to the change in fair value of interest derivatives, * ($1.9) million call premium expense paid on debt extinguishment, and, * ($2.3) million impairment relating to a reduction in carrying value of a split-dollar life insurance policy.
For the first nine months of 2005, Parker Drilling reported revenues of $382.1 million and net income of $42.2 million or $0.43 per diluted share compared to revenues of $266.7 million and a net loss of $41.8 million or $0.45 per share for the first nine months of 2004. Net income for the first nine months of 2005 includes non-routine items of $0.10 per diluted share. The detail of the non-routine items is available on Parker's website and can be viewed or downloaded by going to "Investor Relations" and then to "Reconciliation of Non-GAAP Measures."
The average utilization of international land rigs for the third quarter of 2005 was 83 percent, which is significantly higher than the 61 percent reported for the third quarter of 2004. Current utilization is 84 percent for international land rigs. Average utilization for the Gulf of Mexico barge rigs for the third quarter of 2005 was 78 percent, which is a slight increase from the 74 percent reported for the third quarter of 2004. Current utilization is 79 percent for Gulf of Mexico barge rigs. Dayrates on Gulf of Mexico barges averaged approximately $6,200 per day higher in the third quarter of 2005 when compared to the third quarter of 2004.
Capital expenditures for the nine months ended September 30, 2005, were $44.5 million. Total debt was $415.9 million and the Company's cash balance was $91.7 million at September 30, 2005. Long-term debt has been reduced approximately $70 million during the current year, net of premiums received. The Company has achieved $180 million of its $200 million debt reduction goal established in 2003 and anticipates reaching the goal by year end.
"Our barge rigs in the Gulf of Mexico experienced record margins during the third quarter. These margins, along with continued improvement in our international operations and another strong quarter at Quail Tools, resulted in operational results exceeding last quarter's results, despite the impact of two hurricanes on our US-based operations," said Robert L. Parker Jr., president and chief executive officer.
Parker is increasing its 2005 guidance to net income of $0.50 to $0.55 per
diluted share, up from its second quarter estimate of $0.23 to $0.33 per
diluted share. Both estimates include non-routine items.