SDC
Monday October 27 6:35 AM EST
Company Press Release
Santa Fe International Corp. Reports Strong Results For Quarter Ending Sept. 30, 1997
DALLAS--(BUSINESS WIRE)--Oct. 27, 1997--Santa Fe International Corp. (NYSE:SDC) today reported strong earnings for the three months ended Sept. 30, 1997.
Net income for the quarter was $59.3 million or $0.52 per ordinary share as compared to $31.0 million or $0.27 per ordinary share for the same quarter of 1996. The $28.3 million (91.4%) increase in comparative quarter net income primarily was attributable to increased revenue ($50.7 million or 40.2%) from higher drilling rig dayrates and the addition of five land rigs to the fleet offset by increased operating expenses ($18.4 million or 20.2%).
Earnings per share data for the quarter ended Sept. 30, 1996 were calculated by using the 114.5 million ordinary shares outstanding upon completion of the company's initial public offering in June 1997.
Net income for the quarter increased by $6.0 million or 11.2% as compared with net income for the quarter ended June 30, 1997. Net income per ordinary share increased to $0.52 from $0.47 for the same comparative period.
Total revenue for the 26 rig marine fleet during the three month period ended Sept. 30, 1997 increased 58.9% or $46.0 million over the corresponding period in 1996. Increased dayrates contributed $37.1 million, while a seven percent increase in utilization provided $8.9 million in additional revenue. Average utilization of the marine rig fleet was 98.7% as compared to 91.6% for the corresponding period in 1996.
Daily revenue increases were strong across the fleet with the average for the heavy duty harsh environment jackup rigs increasing 39.3% to $98,372. Average semisubmersible daily revenue increased 98.9% to $88,980, 300-350 foot cantilever jackup rig daily revenue increased an average of 37.1% to $40,206, and other marine rig daily revenue increased by an average of 53.7% to $35,792.
Average daily revenue per rig for the land fleet increased 20.3% to $15,064 for the three month period ended Sept. 30, 1997 as compared to $12,519 for the corresponding period in 1996. Average utilization for land drilling rigs was 92.1% as compared to 92.2% for the same period in 1996.
Sted Garber, Santa Fe's president and chief operating officer, commented, ''We are very pleased with our results for the quarter. Adding to the growth in revenues was the successful start-up of additional land rigs in Saudi Arabia and in the Kuwait-Saudi Arabia Partitioned Neutral Zone.
''During the quarter we also commenced construction on our 6th heavy duty harsh environment jackup rig, to be named Galaxy III. The rig, scheduled for completion during the 3rd quarter of 1999, will fulfill a term contract commitment with Amoco in the North Sea.
''With a high percentage of contracts rolling over in 1998 and beyond at anticipated higher dayrates, and planned rig fleet growth, Santa Fe looks to the future with great optimism.''
Santa Fe International Corp. is a leading international offshore and land contract driller. The company owns and operates a high quality, technologically advanced fleet of 26 marine and 28 land drilling rigs located in 16 countries and is a leading provider of drilling related services to the petroleum industry worldwide.
Statements made in this release that state the company's or management's intentions, hopes, beliefs, expectations, anticipations or predictions of the future are forward-looking statements. It is important to note that the company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the company's SEC filings including but not limited to the company's prospectus dated June 9, 1997, incorporated in registration statement No. 33-66912 on Form F-1 and the company's Form 20-F annual report for the fiscal year ended June 30, 1997. Copies of these filings may be obtained by contacting the company or the SEC.
SANTA FE INTERNATIONAL CORPORATION
QUARTERLY STATEMENT OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,
----------------------------
1997 1996
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Statement of Operations
Total revenues $ 176,787 $ 126,080
Operating costs and expenses:
Operating costs 92,196 76,336
Depreciation and amortization 12,144 11,286
General and administrative 5,234 3,838
(Gain) loss on sale of assets 155 (162)
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Total operating expenses 109,729 91,298
Operating income 67,058 34,782
Other income
Other, net (1,022) (384)
Investment income 618 1,263
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Income before provision for taxes
on income 66,654 35,661
Provision for taxes 7,332 4,667
------------ ------------
Net income 59,322 30,994
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Net income per ordinary share $0.52 $0.27
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Weighted average ordinary shares used
in ordinary share computations 114,500 114,500
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SANTA FE INTERNATIONAL CORPORATION
OPERATING STATISTICS
(Unaudited)
Three Months Ended
September 30,
----------------------------
1997 1996
------------ ------------
Contract drilling average daily revenue
Heavy duty harsh environment
jackup rigs $98,372 $70,609
Semisubmersible rigs 88,980 44,746
300-350 foot cantilever jackup rigs 40,602 29,615
Other marine rigs 35,792 23,287
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Total marine rigs $52,565 $35,643
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Land rigs $15,064 $12,519
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Utilization:
Heavy duty harsh environment
jackup rigs 100.0% 100.0%
Semisubmersible rigs 88.8% 100.0%
300-350 foot cantilever jackup rigs 100.0% 91.6%
Other marine rigs 100.0% 86.7%
Total marine rigs 98.7% 91.6%
Land Rigs 92.1% 92.2%
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