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Gold/Mining/Energy : FLC Falcon Drilling -- Ignore unavailable to you. Want to Upgrade?

To: diana g who wrote (75)	4/30/1998 9:44:00 AM
From: diana g	Read Replies (2) \| Respond to of 461

Re: FLC Reports HOUSTON, April 29 (Reuters) - Offshore drilling company R&B Falcon Corp. said on Wednesday that it expected operating income to rise as contracts for its drilling rigs rolled over at higher rates. ''Industry fundamentals continue to be favorable. Recent weakness in crude oil prices has not materially impacted our current results or our outlook,'' Chief Executive Steven Webster said in a statement released with its first-quarter earnings. The driller reported first quarter income from continuing operations rose to $69.8 million, $0.42 per diluted share, from $44.7 million, or $0.27, a year ago. Analysts had been looking for $0.41 per share, according to First Call. Operating income for the quarter rose 80.5 percent to $126.0 million, on a 37.6 percent rise in revenues to $279.4 million. ''The $56.2 million improvement in operating income is largely attributable to increased revenues due to improved dayrates,'' the company said. Included in the results is a reduction in depreciation expense to reflect a longer useful life for R&B Falcon's rigs, which will result in a lower depreciation expense from the start of this year. The positive benefit for the first quarter added $5.2 million to operating income, it said. Looking forward, Webster said that the planned addition of seven drillships and two semi-submersible drilling rigs to the fleet between 1998 and 2000 ''will help ensure positive earnings momentum'' and that all already had contracts. The company was formed last year through the merger of Reading & Bates Corp. and Falcon Drilling Co.