Headline: Cliffs Drilling Announces 3rd Quarter Earnings
======================================================================
HOUSTON, Nov. 4 /PRNewswire/ -- Cliffs Drilling Company (NYSE:CDG) today
reported net income for the third quarter ended September 30, 1998 of
$14,577,000 compared to net income of $12,291,000 for the same period in 1997.
This amounted to net income of $0.91 per common share in 1998 compared to net
income of $0.79 per common share in 1997. Included in the quarterly results
for 1998 is $1,174,000, or $0.07 per common share, of net after-tax costs
related to the accelerated vesting of restricted stock due to the execution of
the agreement and plan of merger with R&B Falcon Corporation. Net income of
$43,395,000, or $2.71 per common share, was reported for the first nine months
of 1998 compared to $32,877,000, or $2.13 per common share, for the same
period in 1997.
Operating income for the third quarter of 1998 was $28,107,000 compared to
operating income of $23,880,000 for the same period in 1997. Operating income
for the first nine months of 1998 was $82,240,000 compared to $60,823,000 for
the same period in 1997.
Douglas E. Swanson, President and Chief Executive Officer, cited improved
operating results from the Company's primary business segments as the reasons
behind the $4.2 million increase in operating income from the third quarter of
1997 to the third quarter of 1998. Daywork drilling operating income
increased $2.0 million and engineering services operating income increased
$4.5 million. The increase in daywork drilling operating income was the
result of expansion of the Company's rig fleet coupled with improved dayrates.
The engineering services business segment reported an increase in operating
income on the completion of five turnkey wells during the quarter compared to
four turnkey wells completed during the third quarter of 1997.
Looking forward, Mr. Swanson commented that "lower crude oil prices are
affecting exploration and production spending which is creating significantly
lower dayrates and utilization for offshore drilling companies, particularly
in the shallow water Gulf of Mexico. Although our near term financial results
will be adversely affected by these conditions, the Company remains optimistic
about the longer-term market for its services."
The information above contains forward-looking statements within the
meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934.
These particular forward-looking statements and all other statements that are
not historical facts, are subject to a number of risks and uncertainties and
are based upon expectations and assumptions deemed reasonable by the Company.
The Company can give no assurance that such expectations and assumptions will
prove to have been correct and actual results could differ materially from the
information presented. The Company's periodic reports filed with the
Securities and Exchange Commission should be consulted for a description of
risk factors associated with an investment in the Company.
Cliffs Drilling Company is an international offshore contract drilling
company which provides daywork and turnkey drilling services, mobile offshore
production units and well engineering and management services.
CLIFFS DRILLING COMPANY
1998 PRESS RELEASE SUPPLEMENT
NET INCOME
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
Thousands of dollars,
except per share amounts 1998 1997 1998 1997
REVENUES $94,506 $68,120 $269,530 $189,466
NET INCOME $14,577 $12,291 $43,395 $32,877
NET INCOME PER COMMON SHARE (A):
Basic $0.92 $0.80 $2.73 $2.17
Diluted $0.91 (B) $0.79 $2.71 (B) $2.13
AVERAGE SHARES OUTSTANDING (A)(C):
Basic 15,913 15,274 15,868 15,184
Diluted 16,001 15,560 16,030 15,439
(A) Net income per common share amounts and average shares outstanding
for all periods have been presented in compliance with Statement of
Financial Accounting Standards No. 128, Earnings Per Share. Net
income per common share amounts and average shares outstanding for
1997 have been restated to comply with the statement. The dilutive
effect of any options, warrants or convertible securities is excluded
from basic earnings per share and included in diluted earnings per
share.
(B) Includes $1,174,000, or $0.07 per common share, of net after-tax
costs related to the accelerated vesting of restricted stock due to
the execution of the agreement and plan of merger with R&B Falcon
Corporation.
(C) On December 29, 1997, the Company issued 437,939 shares of its
Common Stock in connection with the acquisition of 2 offshore
platform drilling rigs and one jack-up drilling/workover rig.
OPERATING INCOME (LOSS) BY BUSINESS SEGMENT
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
Thousands of dollars 1998 1997 1998 1997
Daywork Drilling $22,465 $20,461 $63,176 $50,834
Engineering Services 9,244 4,733 25,580 14,051
MOPU Operations 734 1,100 2,630 2,633
Oil and Gas (52) (58) (140) (69)
Corporate Office (4,284) (2,356) (9,006) (6,626)
CONSOLIDATED OPERATING INCOME$28,107 $23,880 $82,240 $60,823
SOURCE Cliffs Drillings Company
-0- 11/04/98
/CONTACT: Edward A. Guthrie, Vice President - Finance of Cliffs Drilling
Company, 713-651-9426/ |
