NE's Press Release:
Thursday January 29, 2:07 pm Eastern Time
Company Press Release
SOURCE: Noble Drilling Corporation
Noble Drilling Reports Record 1997 Year End and Fourth Quarter Results
HOUSTON, Jan. 29 /PRNewswire/ -- Noble Drilling Corporation (NYSE: NE - news) reported a 90 percent increase in net income applicable to
common shares, excluding the effects of non-recurring items, for the fourth quarter of 1997 over the 1996 period.
Excluding the effects of non-recurring items, net income applicable to common shares was $46.6 million, or $0.35 per share, on operating revenues of $187.9 million, compared to net income applicable to common shares of $24.5 million, or $0.20 per share, on operating revenues of $141.7 million for the fourth quarter of 1996. Operating results for the fourth quarter of 1997 included a non-recurring charge of $1.5 million, net of taxes of $0.8 million, related to the disposition of certain non-core assets held by Triton Engineering Services Company. Operating results for the fourth quarter of 1996
included a gain of $29.1 million, net of taxes of $16.3 million, related to the sale of land drilling assets on December 13, 1996, and non-recurring charges of $28.0 million. Results for the fourth quarter of 1996 also included an extraordinary charge of $0.7 million, net of taxes of $0.3 million, related to the Company's purchase of $11.0 million principal amount of its 9-1/4% Senior Notes Due 2003 (the ''Senior Notes''). Net income applicable to common shares for the fourth quarter of 1997, including non-recurring items, was $45.1 million, or $0.34 per share, compared to net income applicable to common shares of $24.9 million, or $0.20 per share, for the fourth quarter of 1996.
James C. Day, Chairman, President and Chief Executive Officer, said, ''The Company achieved record results for 1997 and will maintain this
momentum into 1998. Approximately 75 percent of our 1998 revenues are contracted.''
The operating results of contract drilling services continued their strong performance in the fourth quarter of 1997, due primarily to increases in average dayrates and the reactivation of three idle rigs. The results of turnkey drilling services also improved in the fourth quarter of 1997 due to increased margins on completed wells.
Excluding the effects of non-recurring items, net income applicable to common shares for the year ended December 31, 1997 increased 89 percent over the 1996 period to $136.9 million, or $1.03 per share. Operating results for the year ended December 31, 1997 included a gain of $128.5 million, net of taxes of $69.2 million, related to the sale of the mat-supported jackup rigs on May 7, 1997, and non-recurring charges of $1.5 million. Results for the year ended December 31, 1997 also included an extraordinary charge of $6.7 million, net of taxes of $3.6 million, related to the Company's purchase of $110.9 million principal amount of the Senior Notes. Operating results for the year ended December 31, 1996 included gains of $36.7 million, net of taxes of $16.3 million, related to the sales of land drilling assets and posted barge rigs, and non-recurring charges of $35.6 million, as
well as an extraordinary charge of $0.7 million, net of taxes of $0.3 million, related to the Company's purchase of $11.0 million principal amount of the Senior Notes.
Net income applicable to common shares for the year ended December 31, 1997, including non-recurring items, was $257.2 million, or $1.93 per
share, on operating revenues of $713.2 million, compared to net income applicable to common shares of $72.6 million, or $0.66 per share, on
operating revenues of $514.3 million for the year ended December 31, 1996.
At December 31, 1997, the Company's consolidated balance sheet reflected $1.1 billion in shareholders' equity, $66.4 million in cash and cash equivalents and marketable debt securities, and $138.1 million in long-term debt.
Utilization of the Company's active rigs in the U.S. Gulf of Mexico averaged 97 percent for the fourth quarter of 1997 compared to 95 percent in the fourth quarter of 1996 and 95 percent in the third quarter of 1997. International offshore utilization averaged 97 percent for the fourth quarter of 1997 compared to 96 percent in the fourth quarter of 1996 and 94 percent in the third quarter of 1997.
As of December 31, 1997, Noble operated 14 rigs under labor contracts in the U.K. North Sea and two rigs under a labor contract off the East Coast of Canada. These rigs are not owned or leased by the Company.
Offshore contract drilling services from international sources accounted for approximately 72 percent and 65 percent of the Company's total offshore contract drilling services revenues for the fourth quarter of 1997 and 1996, respectively.
Day said, ''With our current EVA-4000(TM) conversions, rig inquiries and bid requests continue to be quite robust and have not been impacted by near term uncertainties in product pricing. Certainly, if oil prices remain weak, activity levels would decline in 1999. However, with five of our EVA-4000(TM) conversions committed, the future is quite encouraging.''
Noble Drilling Corporation is a major drilling contractor with offshore operations in the United States, Canada, Mexico, the North Sea, Africa, the Middle East, South America and India. The Company's Common Stock is traded on the New York Stock Exchange under the symbol ''NE''.
NOBLE DRILLING CORPORATION AND SUBSIDIARIES
SUMMARY OF RESULTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Quarter ended December 31,
1997 1996
Operating Revenues $187,852 $141,738
Operating Costs and Expenses (A) (128,091) (94,246)
Operating Income 59,761 47,492
Other Income (Expense), Net 719 (3,189)
Income Before Income Taxes
and Extraordinary Charge 60,480 44,303
Income Tax Provision (B) (15,427) (17,206)
Income Before Extraordinary
Charge 45,053 27,097
Extraordinary Charge,
Net of Taxes (C) --- (660)
Net Income 45,053 26,437
Preferred Stock Dividends (D) --- (1,511)
Net Income Applicable
to Common Shares $45,053 $24,926
Net Income Applicable to
Common Shares Per Share:
Basic:
Income Before Extraordinary
Charge $0.34 $0.21
Extraordinary Charge --- (0.01)
Net Income $0.34 $0.20
Diluted:
Income Before Extraordinary
Charge $0.34 $0.21
Extraordinary Charge --- (0.01)
Net Income $0.34 $0.20
Weighted Average Common Shares
Outstanding:
Basic 131,171 122,422
Diluted 132,931 123,997
(A) The amount for 1997 includes a non-recurring charge of $2.3 million.
The amount for 1996 includes a net non-recurring gain of
$17.4 million.
(B) The amount for 1997 includes a non-recurring tax benefit of
$0.8 million. The amount for 1996 includes $16.3 million of taxes
related to non-recurring gains on asset sales.
(C) The amount for 1996 relates to the Company's purchase of $11.0 million
principal amount of its 9-1/4% Senior Notes Due 2003.
(D) In December 1996, the outstanding shares of $1.50 Preferred Stock of
the Company were converted into shares of Noble Drilling Common Stock
or were redeemed.
NOBLE DRILLING CORPORATION AND SUBSIDIARIES
SUMMARY OF RESULTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Year ended December 31,
1997 1996
Operating Revenues $713,195 $514,253
Operating Costs and Expenses (A) (331,848) (401,702)
Operating Income 381,347 112,551
Other Income (Expense), Net (1,734) (10,592)
Income Before Income Taxes
and Extraordinary Charge 379,613 101,959
Income Tax Provision (B) (115,731) (22,662)
Income Before Extraordinary
Charge 263,882 79,297
Extraordinary Charge,
Net of Tax (C) (6,685) (660)
Net Income 257,197 78,637
Preferred Stock Dividends (D) --- (6,040)
Net Income Applicable
to Common Shares $257,197 $72,597
Net Income Applicable to Common Shares Per Share:
Basic:
Income Before
Extraordinary Charge $2.00 $0.68
Extraordinary Charge (0.05) (0.01)
Net Income $1.95 $0.67
Diluted:
Income Before Extraordinary
Charge $1.98 $0.67
Extraordinary Charge (0.05) (0.01)
Net Income $1.93 $0.66
Weighted Average Common Shares
Outstanding:
Basic 131,791 108,290
Diluted 133,454 109,581
(A) The amount for 1997 includes a net non-recurring gain of
$195.4 million. The amount for 1996 includes a net non-recurring gain
of $17.3 million.
(B) The amounts for 1997 and 1996 include taxes related to non-recurring
gains on asset sales of $69.2 million and $16.3 million, respectively.
The amount for 1997 also includes a non-recurring tax benefit of
$0.8 million.
(C) The amounts for 1997 and 1996 include charges related to purchases of
the Company's 9-1/4% Senior Notes Due 2003 of $110.9 million principal
amount and $11.0 million principal amount, respectively.
(D) In December 1996, the outstanding shares of $1.50 Preferred Stock of
the Company were converted into shares of Noble Drilling Common Stock
or were redeemed.
SOURCE: Noble Drilling Corporation |
