Santa Fe International Corporation Reports Record Earnings for the
Quarter and Six Months Ended December 31, 1997
DALLAS--(BUSINESS WIRE)--Jan. 28, 1998--Santa Fe International
Corporation (NYSE:SDC - news) today reported record earnings for both
the quarter and six months ended December 31, 1997. Significantly
increased revenues per day and stronger marine utilization were the
primary factors contributing to the improved performance.
For the quarter ended December 31, 1997, total revenue was $198.4
million, an increase of 59.7 million or 43%; net income was $69.2
million, an increase of $31.5 million or 84%; and basic and diluted
earnings per share were $0.60, as compared to $0.33 over the
corresponding period in 1996.
For the six months ended December 31, 1997, total revenue was $375.2
million, an increase of $110.4 million or 42%; net income was $128.5
million, an increase of $59.9 million or 87%; and basic and diluted
earnings per share were $1.12, as compared to $0.60 over the
corresponding period in 1996.
Reporting results for the six month period reflects the Company's
implementation of a previously announced decision to convert from a June
30 fiscal year end to a calendar year end effective for periods ending
after December 31, 1997.
Sted Garber, President and Chief Executive Officer, commented, ''We are
very pleased with our ability to once again report record results.
Consistent with our previously stated strategy, we have been successful
in adding to our land rig fleet and continue to successfully manage the
construction of the Galaxy II within the budget and toward our original
delivery date in late August. The Galaxy III is in the early days of
fabrication and remains on schedule for delivery in September 1999. With
a significant backlog of work and our contracting philosophy of
minimizing risk, we are comfortable in our present ability to maintain
Santa Fe's earnings momentum notwithstanding the Asian economic markets
and the recent movement in oil and gas prices.''
Santa Fe International Corporation is a leading international offshore
and land contract driller. The Company owns and operates a high quality,
technologically advanced fleet of 26 marine drilling rigs and 28 land
drilling rigs located in 16 countries and is a leading provider of
drilling related services to the petroleum industry worldwide.
For further information on Santa Fe International Corporation, contact
Richard Hoffman, Vice President, Investor Relations at 972/701-7950, or
visit our homepage at www.sfdrill.com.
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 these 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, the Company's Form 20-F
annual report for the fiscal year ended June 30, 1997 and Form 6-K for
the quarter ended September 31, 1997. Copies of these filings may be
obtained by contacting the Company or the SEC.
Santa Fe International Corporation
Statement of Operations
(in millions, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
------------------ ------------------
1997 1996 1997 1996
------------------ ------------------
Statement of Operations
-----------------------
Total Revenues $198,398 $138,711 $375,185 $264,791
Operating costs and expenses:
Operating costs 103,482 85,174 195,678 161,510
Depreciation and
amortization 12,732 10,753 24,876 22,039
General and
administrative 5,547 3,725 10,781 7,563
Loss (Gain) on sale
of assets (529) (627) (374) (789)
-------- -------- -------- --------
Total operating expenses 121,232 99,025 230,961 190,323
Operating income 77,166 39,686 144,224 74,468
Other income
Other, net 462 2,365 (560) 1,981
Investment income 746 1,285 1,364 2,548
-------- -------- -------- --------
Income before provision
for taxes on income 78,374 43,336 145,028 78,997
-------- -------- -------- --------
Provision for taxes 9,168 5,672 16,500 10,339
-------- -------- -------- --------
Net income 69,206 37,664 128,528 68,658
======== ======== ======== ========
Net income per ordinary
share:
Basic and Diluted $ 0.60 $ 1.12
Pro forma net income per
ordinary share:
Basic and Diluted $ 0.33 $ 0.60
Weighted average ordinary
shares used in ordinary
share computations:
Basic 114.5 114.5 114.5 114.5
Diluted 114.6 114.5 114.6 114.5
Santa Fe International Corporation
Operating Statistics
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
------------------ ------------------
1997 1996 1997 1996
------------------ ------------------
Contract drilling average daily revenue
Heavy duty harsh
environment jackup rigs $ 98,376 $ 80,541 $ 98,374 $ 75,575
Semisubmersible rigs 100,301 51,076 94,977 47,911
300-350 foot cantilever
jackup rigs 53,445 34,712 46,826 32,214
200-250 foot jackup rigs 43,857 29,049 41,831 26,825
Other marine rigs 13,071 16,130 15,405 16,392
-------- -------- -------- --------
Total marine $ 59,350 $ 40,740 $ 55,944 $ 38,216
======== ======== ======== ========
Land Rigs $ 15,588 $ 12,454 $ 15,331 $ 12,486
======== ======== ======== ========
Utilization:
Heavy duty harsh
environment jackup rigs 98.4% 100.0% 99.2% 100.0%
Semisubmersible rigs 100.0% 100.0% 94.4% 100.0%
300-350 foot cantilever
jackup rigs 94.0% 95.3% 97.0% 93.5%
200-250 foot jackup rigs 100.0% 86.2% 100.0% 86.4%
Other marine rigs 100.0% 100.0% 100.0% 93.5%
-------- -------- -------- --------
Total marine 97.9% 93.4% 98.3% 92.5%
======== ======== ======== ========
Land Rigs 92.4% 92.1% 92.3% 92.1%
======== ======== ======== ========
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Contact:
Santa Fe International Corporation, Dallas
Richard Hoffman, 972/701-7950 |
