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Gold/Mining/Energy : Global Santa Fe (GSF) (formerly Global Marine) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (715)	5/2/1998 5:18:00 PM
From: Greg Jenkins	Read Replies (1) \| Respond to of 2282

I have a copy of the AG Edwards Investment opinion. Here is what they say about the first quarter earnings: Dated 4-14-98 First Quarter Earnings. Global Marine reported first quarter earnings of $0.39 per share beating our estimate of $0.37 and the street's $0.38 estimate. Revenues for the quarter were up 30% to $275 million and operating income rose 58% to $90.7 million. Rig utilization for the quarter averaged 99% and rig dayrates rose 47% over last year. Overall we are pleased with these numbers as GLM continues to bring in strong operational results. for 1998, GLM has contracts or commitments for 82% of its contract drilling rig time, representing approximately $750 million in 1998 contract drilling revenues. Including 19 new contracts and commitments received during the first quarter, GLM's backlog totaled $1.6 billion in revenues expected to generate $1.2 billion in cash margin. On a segment basis---contract drilling (drilling rigs)generated $177 million in revenues for a 62% increase over last year. operating income for the unit was up 104% to $96.1 million. The turnkey operations for the quarter were lackluster. Revenues were down 1% and operating income for the segment was essentially break even. Lower earnings from this segment were primarily due to cost overruns on three wells. Recall that turnkey is a form of "package drilling" outside of the company's core business line of drilling rigs. Turnkey typically accounts for about 10 to 20% of operating income. Since the beginning of the year GLM has approved $800 million in spending to expand the deep water fleet. This year GLM has ordered two new dynamically positioned deep water drillships and has also purchased a 3rd generation semsubmersible drill rig. The company has actively sought to expand its deep water fleet in the face of very visible long term demand for these rigs. --------------------------------------------------------------------- AG Edwards has a "Buy/Speculative" rating with a price objective of $0. Greg J.