GlobalSantaFe Improves Net Income 83% Over Prior Year Period
GlobalSantaFe reported net income for the quarter ended Sept. 30, 2007, of $448.6 million, or $1.96 per diluted share, on revenues of $1.19 billion. The results compare with net income of $245.6 million, or $1.02 per diluted share, on revenues of $909.2 million for the same quarter of 2006. Excluding transaction costs of $12.6 million, or 6 cents per diluted share, related to its pending merger with Transocean, the company would have reported net income of $461.2 million, or $2.02 per diluted share for the third quarter of 2007.
For the nine months ended Sept. 30, 2007, GlobalSantaFe reported net income of $1.17 billion, or $5.05 per diluted share, on revenues of $3.17 billion, compared with net income of $657.0 million, or $2.67 per diluted share, on revenues of $2.36 billion for the corresponding nine-month period of 2006.
GlobalSantaFe President and CEO Jon Marshall commented: "We had an outstanding third quarter with record financial and operating results that were achieved through strong performance in every segment of our business. The contract drilling segment produced record operating income by delivering strong revenues and holding costs below projections. We also benefited from the solid results of the combined drilling management services and oil and gas segments. I am particularly proud that our people maintained their unwavering focus on safety and delivered this strong operational performance while managing the added demands of our pending merger."
Third-Quarter 2007 Analysis
Operating income increased 78% to $501.0 million in the third quarter of 2007, compared with $281.8 million in the third quarter last year. Contract drilling operating income increased 70 percent in the third quarter of 2007 to $522.3 million on higher average daily revenues per rig of $185,200 and average rig utilization of 96%. This compares with contract drilling operating income of $307.2 million in the third quarter of 2006 on average daily revenues per rig of $130,500 and average utilization of 97%.
The improved third-quarter 2007 operating results also reflected higher operating income for the combined drilling management services and oil and gas segments, primarily resulting from stronger turnkey drilling performance compared with the third quarter of 2006.
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