Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: scott mcdowell who wrote (20678)	4/28/1998 4:17:00 PM
From: Thean	Read Replies (1) \| Respond to of 95453

Tuesday April 28, 3:03 pm Eastern Time Transocean beats forecast,sees strong demand HOUSTON, April 28 (Reuters) - Transocean Offshore Inc. said Tuesday that stronger demand for drilling rigs and increases in the rates that energy companies were prepared to pay boosted the offshore drilling company to a record first quarter. First-quarter net income excluding special items rose to $63.7 million, or $0.63 per diluted share, up from $27.7 million, or $0.27 a year ago, Transocean reported. The results beat a First Call consensus of $0.58 a share. The company said in a statement that the utilization rates for its offshore drilling rigs was 98 percent in the quarter, up from 93 percent a year ago. The company said that rates continue to be strong and that demand for its rigs remained high. ''The company's committed fleet time in 1998 is now 99%, while committed fleet time in the years 1999, 2000 and 2001 has grown to 69 percent, 44 percent and 31 percent, respectively, indicating continued long-term interest among operators for high specification floating drilling equipment,'' said chief executive J. Michael Talbert, The average rate that energy companies were prepared to pay for its semisubmersible drilling rigs was $112,800, up from $86,900 a year ago. ------- MDCO's moving rigs to work at shallower water for cheaper rate could be a concern. On the surface it could mean they could not find work where they were but someone may want to talk about the economic trade-off of shorter term, less money commitment vs longer term, more money commitment. Is MDCO betting that dayrate in shallower water will rise when the contract term ends?