FORASOL-FORAMER N.V. ANNOUNCES QUARTERLY RESULTS.PARIS--(BUSINESS WIRE)--May 20, 1996--Forasol-Foramer N.V. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : FSOLF) today reported a net loss for the first quarter ended March 31, 1996 of $4.5 million or $0.45 per share compared to a loss of $2.3 million or $0.23 per share for the same period in 1995. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter of 1996 was ($2.4) million compared to ($0.1) million for the same period in 1995. The table below sets forth a comparison of revenues and operating income by business segment for Forasol-Foramer N.V. for the first quarters ended March 31, 1996 and 1995. -0-
Three Months Ended Increase/
March 31, (Decrease)
------------------ ----------
1996 1995
---- ----
(Amounts in thousands, except per share data)
(unaudited)
Revenues
Tenders/Barges $13,497 $12,227 $ 1,270
Semisubmersibles/Drillship 6,560 4,683 1,877
Jackups 2,510 1,381 1,129
Land 19,187 10,924 8,263
Engineering and Management
Services 4,459 2,779 1,680
Equity in Net Income of
Affiliates 79 66 13
------- ------- -------
Total Revenues $46,292 $32,060 $14,232
======= ======= =======
Cost of Operations
Tenders/Barges $ 7,297 $ 6,425 $ 872
Semisubmersibles/Drillship 5,011 3,747 1,264
Jackups 1,776 1,154 622
Land 17,603 8,055 9,548
Engineering and Management
Services 4,671 2,085 2,586
Bases 3,217 2,114 1,103
------- ------- -------
Total Cost of Operations $39,575 $23,580 $15,995
======= ======= =======
Operating Income
Tenders/Barges $ 6,200 $ 5,802 $ 398
Semisubmersibles/Drillship 1,549 936 613
Jackups 734 227 507
Land 1,584 2,869 (1,285)
Engineering and Management
Services (212) 694 (906)
Equity in Net Income of
Affiliates 79 66 13
Bases (3,217) (2,114) (1,103)
Selling, General &
Administrative (4,470) (4,101) (369)
Depreciation and Amortization
Expense (4,621) (4,453) (168)
------- ------- -------
Total Operating Income $(2,374) $ (74) $(2,300)
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As the table illustrates, the offshore drilling Offshore drilling typically refers to the act of extracting resources, primarily oil, in an ocean or lake. Controversy As with all oil drilling, there has been a certain level of controversy surrounding the issue. segments have demonstrated improvements during the first quarter of 1996 compared to the same period in 1995. The increase in revenues in the onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. drilling segment from $10.9 million in 1995 to $19.2 million in 1996 was principally due to the payment of a fee to cover the cost of mobilization mobilization Organization of a nation's armed forces for active military service in time of war or other national emergency. It includes recruiting and training, building military bases and training camps, and procuring and distributing weapons, ammunition, uniforms, of the Foraslim rig in Romania Romania (rōmān`ēə, –yə) or Rumania (r  –), republic (v), 91,699 sq mi (237,500 sq km), SE Europe. and the contribution from
HAPSA an Argentinean land drilling company acquired in the second
quarter of 1995. The onshore drilling and engineering and management
services segments, however, generated $1.3 million and $0.9 million less
operating income, respectively, for the first quarter of 1996 compared
to the same period in 1995. This reduction in operating income was due
primarily to the delayed commencement in 1996 of two land drilling
contracts, additional base costs in Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. and a provision for excess
costs related to an onshore turnkey See turnkey system. contract in Venezuela Venezuela (vĕnəzwā`lə, Span. vānāswā`lä), officially the Bolivarian Republic of Venezuela, republic (2005 est. pop. 25,375,000), 352,143 sq mi (912,050 sq km), N South America. . The company
is currently seeking compensation from the customer for this contract
and is also in the process of reducing overhead costs overhead costssee fixed costs. of its Argentinean subsidiary. Management has a positive outlook for the remainder of 1996 due to the commencement of a 30 well drilling Well drilling is the process of drilling a hole in the ground for the extraction of a natural resource such as ground water, natural gas, or petroleum. Drilling for the exploration of the nature of the material underground (for instance in search of metallic ore) is best described program for Maraven in Venezuela which is expected to generate approximately $90 million of revenues over a three year period, and the commencement of the land drilling contracts delayed from the first quarter. In addition, the semisubmersible sem·i·sub·mers·i·ble n. A seagoing, self-propelled barge that rides at anchor, stands on partially submerged vertical legs on submerged pontoons, and serves as living quarters and a base of operations in offshore drilling. rig, South Seas South Seas, name given by early explorers to the whole of the Pacific Ocean. In recent times the name has been used to mean only the central Pacific, the S Pacific, and the SW Pacific. Driller, and a tender-assisted rig, Cormorant cormorant (kôr`mərənt), common name for large aquatic birds, related to the gannet and the pelican, and found chiefly in temperate and tropical regions, usually on the sea but also on inland waters. , both of which are currently being upgraded, will commence operations in October October: see month. 1996. Lastly, management is pleased with the 22 percent increase in operating income related to its offshore drilling business and anticipates continued increases due to the strong environment for offshore drilling rig dayrates and the continued promotion of the company's integrated services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. and project management expertise. The table below sets forth a comparison of the first quarter results of Forasol-Foramer N.V. for 1996 and 1995. -0-
Three Months Ended
March 31 Increase/
-------------------
1996 1995 (Decrease)
---- ---- ----------
(Amounts in thousands, except per share data)
(unaudited)
Net Operating Revenues $46,213 $31,994 $14,219
Equity in Net Income of
Affiliates 79 66 13
------- ------- -------
Total Revenues 46,292 32,060 14,232
Cost of Operations (39,575) (23,580) (15,995)
Depreciation and Amortization (4,621) (4,453) (168)
Selling, General &
Administrative (4,470) (4,101) (369)
------- ------- -------
Operating Income (2,374) (74) (2,300)
Net Interest and Other
Financial Income/(Express) (2,030) (1,745) (285)
Net Foreign Exchange Gain/(Loss) 978 (902) 1,880
Other Income/(Expense), net (113) (264) (377)
------- ------- -------
Income Before Minority Interest
and Income Taxes (3,539) (2,457) (1,082)
Minority Interest (35) (76) 41
Income Taxes (966) (226) (1,192)
------- ------- -------
Net Loss ($4,540) ($2,307) ($2,233)
------- ------- -------
Net Loss per Share ($0.45) ($0.23) ($0.22)
------- ------- -------
Weighted Average Shares
Outstanding 10,010 10,010 --
======= ======= =======
Forasol-Foramer N.V. is a diversified diversified (di·verˑ·s international drilling company that provides drilling, workover and related services to oil and gas companies worldwide. The company currently provides services in more than 20 countries, with significant operations in Angola Angola (ăng-gō`lə), officially Republic of Angola (2005 est. pop. 11,191,000), including the exclave of Cabinda, 481,351 sq mi (1,246,700 sq km), SW Africa. , Argentina, Venezuela and North Africa. The company operates a diverse fleet of seven tender-assisted rigs, four barge barge, large boat, generally flat-bottomed, used for transporting goods. Most barges on inland waterways are towed, but some river barges are self-propelled. There are also sailing barges. rigs, two semisubmersible rigs, one dynamically positioned drillship
A drillship is a maritime vessel that has been fitted with drilling apparatus. It is most often used for exploratory drilling of new oil or gas wells in deep water but can also be used for scientific drilling. , four jackup rigs and 31 land rigs. The company also provides well engineering, integrated drilling services, turnkey wells and project management to its customers. CONTACT: Remi Dorval, 011-33-1-30705809, or Gerard Godde, 011-33-1-30705813, both of Forasol-Foramer N.V. |
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