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READING & BATES CORPORATION ANNOUNCES FINANCIAL RESULTS

    READING & BATES CORPORATION ANNOUNCES FINANCIAL RESULTS
    HOUSTON, Nov. 5 /PRNewswire/ -- Reading & Bates Corporation (NYSE: RB) reported a net loss of $456,000, on revenues of $29.0 million, for the quarter ended Sept. 30, 1991.  The third quarter results included a gain of $2.8 million on the sale of the company's water treatment segment.
    The net loss for the third quarter of 1990 was $7.2 million, ($.19 per share) on revenues of $30.9 million.  The improvement was primarily due to a decrease in interest expense of $6.8 million as a result of the recapitalization that was completed in the first quarter of 1991, offset by a decrease in revenue attributable to the "Zane Barnes" being off contract for 87 days in the third quarter of 1991.
    For the nine months ended Sept. 30, 1991, the company reported a net loss of $32.5 million ($.19 per share), which included a charge of $18.9 million ($.11 per share) for the cumulative effect of adopting Statement of Financial Accounting Standards No. 106, Employers' Accounting for Postretirement Benefits Other Than Pensions, an extraordinary gain of $3.7 million ($.02 per share) resulting from a settlement of a 1979 claim against the National Iranian Oil Company and a gain of $2.8 million ($.01 per share) on the sale of the company's water treatment segment.  A net loss of $29.4 million ($.80 per share), was reported for the nine months ended Sept. 30, 1990, which included an extraordinary gain of $2.9 million.  The nine month revenue and loss from continuing operations was $90.8 million and $19.1 million in 1991 compared to $83.2 million and $31.5 million in 1990, respectively.  The improvement was basically due to an increase in dayrates and decreased interest expense as a result of the recapitalization.
    Reading & Bates Corporation, a New York Stock Exchange listed company, engages in offshore drilling throughout the world.
           READING & BATES CORPORATION AND SUBSIDIARIES
              Consolidated Statement of Operations
             (in thousands except per share amounts)
                         (unaudited)
                           Three Months Ended    Nine Months Ended
                              September 30,         September 30,
                            1991         1990       1991  1990
    Operating revenues    $ 28,975    $ 30,886   $ 90,798  $ 83,213
    Costs and Expenses:
     Operating expenses     26,490      25,673     75,475    74,292
     General and
      administrative         3,005       3,093     13,194     9,890
    Total                   29,495      28,766     88,669    84,182
    Operating income (loss)   (520)      2,120      2,129      (969)
    Other Income (Expense):
     Interest expense       (2,913)     (9,766)   (14,067)  (28,373)
     Interest income           104         743        401     1,923
    Equity in earnings of
     unconsolidated affiliates 436         479        567       693
    Other, net                (630)     (1,584)    (6,764)   (2,386)
    Total                   (3,003)    (10,128)   (19,863)  (28,143)

    Loss from continuing
     operations before
     income taxes and
     items below            (3,523)     (8,008)   (17,734)  (29,112)
    Income tax expense
     (benefit)                (493)       (431)     1,342     2,342
    Loss from continuing
     operations before
     items below            (3,030)     (7,577)   (19,076)  (31,454)
    Discontinued Operations:
     Income (loss) from
      operations              (261)        412     (1,090)     (831)
     Gain on disposal        2,835         --       2,835       --
    Total                    2,574         412      1,745      (831)
    Loss before items below   (456)     (7,165)   (17,331)   (32,285)
    Extraordinary gain          --          --      3,725      2,899
    Cumulative effect of
     change in accounting
     principle                  --          --    (18,860)      --
    Net loss                $ (456)    $(7,165)  $(32,466)  $(29,386)
    Earnings (loss) Per Share:
     Continuing operations
      before items below    $ (.01)    $ (.20)   $   (.11)    $(.85)
     Discontinued operations   .01        .01         .01      (.03)
     Extraordinary gain         --         --         .02       .08
     Cumulative effect of
      change in accounting
      principle                 --         --        (.11)       --
    Net loss per share      $  .00     $ (.19)    $  (.19)   $  (.80)
                  READING & BATES CORPORATION AND SUBSIDIARIES
                       Condensed Consolidated Balance Sheet
                                (in thousands)
                                  (unaudited)
                                 9/30/91        12/31/90
    Assets:
     Current assets             $ 74,927        $ 45,840
     Net property and equipment  323,595         328,224
     Investments and advances     37,403           3,614
     Other assets                  5,433           6,883
    Total assets                $441,358        $384,561
    Liabilities and Stockholders'
     Equity:
     Long-term obligations
      including current portion $ 69,119        $327,470
     Current liabilities other
      than current portion of
      long-term obligations       65,028          36,093
     Other noncurrent liabilities 72,331          46,276
     Redeemable preferred stock   12,206            --
     Common stock subject to
      redemption                  12,968            --
     Other stockholders' equity  209,706         (25,278)
    Total liabilities and
     stockholders' equity       $441,358        $384,561
    -0-        11/5/91
    /CONTACT:  T.W. Nagle of Reading & Bates Corporation, 713-496-5000/
    (RB) CO:  Reading & Bates Corporation ST:  Texas IN:  OIL SU:  ERN PS -- NY093 -- 1471 11/05/91 18:54 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Date:Nov 5, 1991
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