Printer Friendly

NOBLE DRILLING REPORTS 1991 RESULTS

 NOBLE DRILLING REPORTS 1991 RESULTS
 HOUSTON - Noble Drilling Corp. (NASDAQ: NDCO) today reported


operating revenues from continuing operations of $177.4 million for the year ended Dec. 31, 1991, compared with $131.4 million for the 1990 fiscal year.
 The consolidated net loss of $10.2 million ($.33 per common share) was impacted by writedowns, restructuring charges and discontinuance of operations totaling $9.8 million. Year-end charges included $5.7 million related to the closing of two land divisions, $1.8 million related to the discontinuation of oil and gas exploration and production operations, $1.8 million from the writedown of non-operating real estate and $500,000 relating to the anticipated consolidation of the two Gulf Coast Marine divisions. The reported net loss for the year ended Dec. 31,1990, was $8.8 million ($.35 per common share).
 The company announced plans earlier in the week to close its Mid-Continent and Rocky Mountain divisions and cease land drilling operations in these regions. Accordingly, the 1991 financial results include a one-time charge of $2.7 million related to the expense of closing the operations. Additionally, the value of the drilling rigs managed by these divisions was written down by $3.0 million.
 In an effort to focus on the company's core contract drilling business, steps have been initiated to discontinue oil and gas exploration and production operations and sell the company's oil and gas related properties, all of which are located in the United States and Canada. The loss from discontinued operations for the 12-months ended Dec. 31, 1991, was $1.8 million ($.05 per common share) which is primarily the result of a writedown taken on the oil and gas properties.
 Non-recurring income items included in the 1991 results are an extraordinary gain of $5.0 million from an insurance settlement, a gain of $3.4 million from the settlement relating to a rig lost in Somalia, and a gain of $692,000 from the sale of Rig 59.
 Noble's domestic rig utilization rate averaged 33 percent for the year ended Dec. 31, 1991, compared with 34 percent for the 1990 year. Internationally, the company averaged 41 percent utilization on owned and leased equipment during 1991 compared with 33 percent for 1990. Additionally, as of Dec. 31, 1991, the company was operating 15 rigs under labor contracts in the U.K. North Sea.
 James C. Day, president and chief executive officer, said "The recently announced steps are a continuation of our emphasis to refocus the organization. We are continuing to pursue international markets where we can obtain economies of scale. However, it is critically important to note while international markets hold a great deal of allure, we will not place equipment on uneconomical international contracts just to move domestic equipment abroad."
 Highlights for 1991 include the company's acquisition of 12 mobile offshore drilling rigs and related assets from Transworld Drilling Co. and the commencement of Nigerian contract drilling operations. Day said, "We have been pleased with the acquisition and the progress of this start-up division. Both events have made significant contributions to the company."
 In November, 1991 the company successfully completed a public offering of 2,990,000 shares of a $2.25 convertible exchangeable preferred stock resulting in net proceeds of approximately $71 million. In conjunction with this offering, the debt related to the January 1991 acquisition of the Transworld assets was restructured providing for more favorable terms to the company.
 Day said, "The drilling market did not enjoy the anticipated fourth quarter surge in activity and the outlook for 1992, domestically, is not promising. We anticipate there will be more consolidation within the service sector and only the strong will survive. Noble Drilling will certainly be among those survivors since we have a substantial cash position. We are continuing to monitor existing operations and will eliminate those that do not meet our earnings expectations."
 Day added, "Since the acquisition of the Transworld assets, Noble has reduced its long-term debt by $49 million through early repayment of bank debt, debt associated with the Transworld acquisition and scheduled payments related to the Nigerian operation. "
 Noble Drilling Corp. is a major drilling contractor with offshore and land operations in the United States, Canada, the United Kingdom, Africa, South America, the Middle East and the Far East. The company's outstanding Common Stock and $2.25 Convertible Exchangeable Preferred Stock are traded in the NASDAQ/NMS under the symbols NDCO and NDCOP, respectively.
 NOBLE DRILLING CORP. AND SUBSIDIARIES
 SUMMARY OF RESULTS
 (Audited, in thousands except per share amounts)
 Year ended Dec. 31,
 1991 1990
 Operating revenues $ 177,378 $ 131,353
 Operating income (loss)
 before restructuring $ 1,857 $ (7,481)
 Restructuring costs $ 6,134
 Operating loss $ (4,277) $ (7,481)
 Loss from continuing operations $ (13,360) $ (8,752)
 Discontinued oil and
 gas operations $ (1,815) $ 1
 Loss before extraordinary item $ (15,175) $ (8,751)
 Extraordinary item $ 4,978 $
 Net loss $ (10,197) $ (8,751)
 Net income (loss) per common share -
 Continuing operations $ (.42) $ (.35)
 Discontinued operations (.05)
 Extraordinary item .15 --
 $ (.33) (A) $ (.35)
 Average common shares outstanding 33,656 26,796
 (A)does not add due to rounding
 -0- 2/5/92
 /CONTACT: Byron Welliver of Noble Drilling Corp., 713-974-3131/
 (NDCO) CO: Noble Drilling Corp. ST: Texas IN: OIL SU: ERN


RM -- SF006 -- 7284 02/05/92 14:48 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 5, 1992
Words:886
Previous Article:NATIONAL MEDIA CORPORATION HOLDS ANNUAL SHAREHOLDERS' MEETING
Next Article:WILLIAMS CONTROLS RECORDS HIGHEST MONTHLY SALES
Topics:


Related Articles
NOBLE DRILLING DECLARES DIVIDEND ON PREFERRED STOCK
NOBLE AFFILIATES REPORTS HIGHER OIL AND GAS RESERVES
NOBLE AFFILIATES ANNOUNCES 1991 RESULTS, ANNOUNCES 1992 CAPITAL BUDGET
NOBLE AFFILIATES ANNOUNCES START OF PRODUCTION FROM EUGENE ISLAND OFFSHORE LOUISIANA PROPERTY
NOBLE AFFILIATES IDENTIFIES TOWSLEY NO. 1 AS 'WILDCAT EXPLORATORY OIL WELL'
NOBLE AFFILIATES ANNOUNCES JOINT VENTURE AGREEMENT FOR TUNISIAN CONCESSIONS
NOBLE DRILLING CORPORATION FILES FOR PUBLIC OFFERING RELATED TO THE ACQUISITION OF ADDITIONAL OFFSHORE ASSETS
Noble Drilling Reports Record 1996 Year End and Fourth Quarter Results
Noble Drilling Reports Third Quarter 1997 Operating Results
Noble Drilling Reports Second Quarter 1998 Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters