Parker Drilling Reports Third Quarter Results
|Friday, October 31, 2003
For the quarter ended September 30, 2003, Parker Drilling reported revenues of $77.0 million and a net loss of $6.7 million, or $0.07 per share, compared to a net loss of $8.0 million or $0.09 per share on revenues of $87.2 million for the third quarter of 2002. The loss from continuing operations for the third quarter of 2003 was $10.6 million or $0.11 per share compared to a loss from continuing operations of $0.2 million or $0.00 per share for the third quarter of 2002.
For the first nine months of 2003, Parker Drilling reported revenues of $228.9 million and a net loss of $97.3 million, or $1.04 per share, which includes a $54.0 million or $0.58 per share impairment for assets held for sale. For the first nine months of 2002, Parker Drilling reported revenues of $257.1 million and a net loss of $103.7 million, or $1.12 per share, which included a goodwill impairment provision of $73.1 million, or $0.79 per share. The loss from continuing operations for the first nine months of 2003 was $34.9 million or $0.37 per share compared to a loss from continuing operations of $9.6 million or $0.10 per share for the first nine months of 2002.
Average utilization of international land rigs for continuing operations increased slightly during the third quarter of 2003 to 34 percent when compared to an average for the second quarter of 32 percent. However, the current utilization has increased to 42 percent due to the late-September mobilization of Rig 255 to Bangladesh and Rig 230 to Turkmenistan. Average utilization of Parker Drilling's Gulf of Mexico barge rigs decreased during the third quarter of 2003 to 40 percent compared to an average utilization of 55 percent in the second quarter of 2003. The current utilization has increased to 64 percent for the Gulf of Mexico barge rigs.
Capital expenditures for the nine months ended September 30, 2003, were $23.8 million. Total debt was $569.4 million at September 30, 2003, and the company's cash balance was $81.4 million.
During October the company completed a refinancing of its debt which extends the maturity of certain debt and provides additional liquidity to retire the 5.5% convertible notes due in 2004. The company issued $175.0 million of new 9.625% senior notes due 2013 and signed a new $150.0 million credit agreement. The credit agreement consists of a four-year $100.0 million term loan and a three-year $50.0 million revolver. The proceeds of the new 9.625% senior notes and an initial draw of $50.0 million on the term loan were used to retire the existing 9.75% senior notes due 2006 that had been tendered pursuant to a tender offer dated September 24, 2003. The 9.75% senior notes that were not tendered have been called and will be retired effective November 15, 2003. The revolving credit facility portion of the credit agreement replaces the existing $50.0 million revolving credit facility that would have expired in late October 2003. No funds have been drawn under the current revolving credit facility.
The company also reported that its jackup Rig 14J is still removed from service and is currently docked for evaluation following a September 11, 2003 incident in which the rig became partially submerged. The company expects losses to be covered by insurance.