Santa Fe International Reports First Quarter Results
DALLAS--(BUSINESS WIRE)--April 29, 1998--Santa Fe International Corporation
(NYSE:SDC - news) today reported
earnings for the three months ended March 31, 1998.
Net income for the quarter was $67.8 million as compared to $42.9 million for the same
quarter of 1997. The $24.9 million (58%) increase was primarily attributable to
increased revenue ($47.0 million or 32%) from higher drilling rig dayrates and the
addition of five land rigs to the fleet offset by increased operating ($12.9 million) and
depreciation expenses ($2.7 million) and higher provision for taxes on income ($4.1
million). Basic and diluted earnings per share for the quarter were $0.59 as compared to
$0.37 on a pro forma basis for the same period in 1997, or a 59% increase.
Operating income for the quarter increased $0.9 million (1%) as compared with the
quarter ended December 31, 1997 primarily due to lower operating expenses. Other
income decreased $2.6 million mainly due to foreign exchange losses incurred in
Southeast Asian and North Sea operations. The combination, coupled with a slightly
lower tax provision, resulted in net income for the quarter decreasing ($1.4 million or
2%) when compared to the prior quarter. Basic and diluted earnings per share for the
quarter decreased to $0.59 from $0.60 for the quarter ended December 31, 1997.
Sted Garber, President and Chief Executive Officer, commented, ''We were very
pleased with the results for the quarter. Although we remain confident in our earnings
growth for 1998, several concurrent operational events will cause our second quarter
earnings to decline from the first quarter results. These events include the relocation of
three of our offshore rigs, the Compact Driller, the Parameswara, and Rig 140, and the
shipyard maintenance and upgrade of Rig 140 and Rig 127. While the rig moves and
upgrades will result in flat revenues and higher costs for the second quarter, we believe
the resulting benefits far outweigh the short-term impact. Each move will yield either
higher dayrates or better protection from potential softening of jackup markets in the
Gulf of Mexico and West Africa. The upgrades to Rig 140 and Rig 127 will make these
rigs more competitive. With the additions of the Galaxy II and four land rigs to our fleet
in the later part of this year, coupled with emphasis on controlling operating costs
increases, we are confident our third and fourth quarter financial performance will
resume the trend of record quarterly results.''
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 29 land drilling rigs and is a leading provider of drilling
related services to the petroleum industry worldwide. The Company currently operates
in 16 countries throughout the world. For further information, contact Richard Hoffman,
Vice President, Investor Relations, at 972/701-7950. |
