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

To: The Ox who wrote (25667)	7/14/1998 10:23:00 AM
From: TulipMania	Read Replies (1) \| Respond to of 95453

HOUSTON, July 14 (Reuters) - Global Marine Inc Tuesday reported its best quarterly results ever and warned that, if oil prices remain at current levels, the company anticipates lower dayrates. This could possibly be accompanied by lower use of some of Global Marine's rigs, particularly jackups in the U.S. Gulf of Mexico, the company continued. This year's low oil prices have caused some customers to reduce their 1998 drilling budgets, primarily in water depths where jackup rigs are used, Global Marine explained. It pointed out most of the company's fleet, especially its deep-water rigs, is contracted into 1999 at fixed dayrates. Global Marine reported second quarter profits of $0.42 per share compared to $0.34 a year earlier before a $0.14 credit for deferred income taxes. "On a pretax basis, the second quarter of 1998 was the company's best ever," chief executive Bob Rose said. "Compared to the second quarter of 1997, revenues were up 53 percent and operating income was up 51 percent. Our dayrate drilling business recorded a 52 percent increase in revenues and an 84 percent increase in cash flow from operations comared to the corresponding prior-year quarter." The record second quarter results were achieved "despite a disappointing performance for the quarter from our drilling managment operations, primarily due to cost overruns on two wells and idle time on rigs hired by the company on term contracts," Rose continued. Drilling management contributed $1.0 million in the latest quarter compared to $11.0 million a year ago, the company said. ((-- Jim Brumm, New York Equity News at 212 859-1710, fax 212-859-1717 or nyc.equities.newsroom@reuters.com)) REUTERS * end of story *