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

To: Shelia Jones who wrote (20812)	4/29/1998 4:42:00 PM
From: Thean	Read Replies (1) \| Respond to of 95453

Thanks, Shelia. GW has a habit of not issuing full press releases but only tables. That was pretty flat. I had hoped for 3 cents. Definitely a sell at $5 if it gets there. FLC (positive prospect presented by CEO) and SDC (next two quarters going to be flat and soft GOM and West Africa markets) stories below: ---------------- Wednesday April 29, 11:59 am Eastern Time R&B Falcon sees rising operating income 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. R&B Falcon stock rose 1-3/16 to 31-3/8 in late morning trade on the New York Stock Exchange. ---------------- Wednesday April 29, 8:04 am Eastern Time Company Press Release 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.