GlobalSantaFe (IL/A): First Take - 4Q core operations in line - Goldman Sachs - February 23, 2006
Excluding one-time items (gain on sale and insurance proceeds), GlobalSantaFe's recurring 4Q05 EPS of $0.62 was above our estimate of $0.60 and consensus $0.56. The upside EPS surprise, however, was generated almost entirely by (1) lower S,G&A expense (+$0.01 positive variance) and (2) lower tax rate (+$0.01). Core contract drilling operating income was in line with our expectations. Non-core Turnkey operating income was 17% below our expectations on higher costs, offset by Oil & Gas op income 5% ahead on lower costs. Conference call today 11am EST, dial in (719) 457-2679. Maintain IL/A rating.
Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report: Jason Gilbert, Jerry Revich. |
