To: Thean who wrote (20813 ) 4/29/1998 5:13:00 PM From: Czechsinthemail Respond to
Thean, Thanks for posting the FLC and SDC stories. SDC's results and comments by their CEO may have been responsible for the stock underperforming today. Though they beat the Zack's estimate by a penny, they were down from their 4Q results and the CEO predicted a further decline in the 2Q: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.''
