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PRESS RELEASE
Contact: Dale W. Wilhelm
Vice President & Controller
(281) 243-3000
--------------------------------------------------------------------------------
NYSE SYMBOL: MRL
MARINE DRILLING COMPANIES, INC. ANNOUNCES 3rd QUARTER FINANCIAL RESULTS
SUGAR LAND, TEXAS, OCTOBER 25, 2000--Marine Drilling Companies, Inc. (the
"Company") (NYSE: MRL) today reported third quarter 2000 net income of $15.6
million, or $0.26 per share on a fully diluted basis, on revenues of $72.5
million, compared to a net income of $2.9 million, or $0.05 per share, on
revenues of $35.3 million for the same period in 1999. Average daily revenue and
rig utilization for the quarter ended September 30, 2000 increased to $48,306
per operating day and 93%, respectively compared to $33,204 per operating day
and 71%, respectively for the third quarter of 1999.
For the nine months ended September 30, 2000, the net income was $28.3 million,
or $0.48 per share on a fully diluted basis, on $183.9 million of revenue versus
a net loss of $8.6 million, or $0.16 per share, on revenues of $70.6 million for
the corresponding period in 1999.
Jan Rask, president and chief executive officer of Marine, said, "We are very
pleased with our third quarter results, which have doubled our second quarter
results due primarily to higher dayrates and rig utilization in the U.S. Gulf of
Mexico. Our results also benefited from the addition of the Marine 201 and the
Marine 202 to our U.S. Gulf of Mexico fleet during the third quarter 2000.
Internationally, the MARINE 305 also went back to work during the third quarter
under a 486-day contract."
As previously announced, Marine Drilling will host a conference call with
analysts today at 10:00 am central time to discuss third quarter results.
Interested parties may listen to the conference call including the question and
answer session by connecting to Marine Drilling's web site at www.mardril.com.
The Company suggests you connect to its' web site at least 15 minutes prior to
the call to ensure adequate time for any software download that may be needed to
hear the call. Starting at 1:30 p.m. central time today through midnight Friday,
October 27, 2000, interested parties can access a replay of the call at
800-475-6701 using the access code 540492. A replay of the conference call will
also be available on the Company's website.
Marine Drilling Companies, Inc. is an offshore drilling contractor with a fleet
of 17 offshore drilling rigs and one jack-up rig currently configured as an
accommodation unit located in the U.S. Gulf of Mexico and select international
markets. The drilling rig fleet consists of 15 jackups and two deep-water
semi-submersibles.
This press release includes statements that may be deemed to be
"forward-looking" statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. All statements, other than statements of historical facts, included
in this press release that address activities or events the company believes
will or may occur in the future are forward-looking statements. Such statements
are subject to a number of uncertainties and risks that are discussed in the
Company's most recent Forms 10-K, 10-Q and the prospectus included in the
post-effective amendment to the Company's registration statement on Form S-3
filed with the Securities and Exchange Commission on August 14, 2000. Investors
are cautioned that actual results may differ materially from those projected in
the forward-looking statements.
For online information about Marine Drilling Companies, Inc.
visit www.mardril.com
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MARINE DRILLING COMPANIES, INC.
SUMMARY FINANCIAL AND OPERATING DATA
(In thousands, except per share and rig operating data)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------- ----------------------
2000 1999 2000 1999
-------- --------- --------- --------
<S> <C> <C> <C> <C>
Revenues $ 72,507 $ 35,263 $ 183,949 $ 70,593
Costs and Expenses:
Contract drilling 29,903 19,801 87,090 53,095
Depreciation and amortization 11,192 9,622 32,892 19,113
General and administrative 3,902 2,314 10,914 9,211
-------- --------- --------- --------
44,997 31,737 130,896 81,419
-------- --------- --------- --------
Operating income (loss) 27,510 3,526 53,053 (10,826)
-------- --------- --------- --------
Interest expense (2,825) (2,144) (9,221) (2,565)
Interest income 97 378 388 803
Other, net 375 323 1,407 282
-------- --------- --------- --------
Other expense, net (2,353) (1,443) (7,426) (1,480)
-------- --------- --------- --------
Income (loss) before income
taxes 25,157 2,083 45,627 (12,306)
Income tax expense (benefit) 9,559 (813) 17,338 (3,691)
-------- --------- --------- --------
Net income (loss) $ 15,598 $ 2,896 $ 28,289 $ (8,615)
======== ========= ========= ========
Earnings (loss) per share:
Basic $ 0.27 $ 0.05 $ 0.48 $ (0.16)
Diluted $ 0.26 $ 0.05 $ 0.48 $ (0.16)
Average common shares
outstanding:
Basic 58,524 57,133 58,354 54,633
Diluted 59,432 57,708 59,206 54,633
</TABLE>
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MARINE DRILLING COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
SEPTEMBER 30, December 31,
2000 1999
-------- --------
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 5,098 $ 4,664
Accounts receivable, net 49,143 29,332
Income tax receivable -- 18,904
Other 2,948 2,493
-------- --------
57,189 55,393
Property and Equipment 740,889 705,351
Less accumulated depreciation 129,574 97,511
-------- --------
611,315 607,840
Other 2,250 2,909
-------- --------
Total assets $670,754 $666,142
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable, accrued expenses and other $ 22,280 $ 23,917
Employer's liability claims, current 630 660
-------- --------
22,910 24,577
Long-term debt 120,000 180,000
Employer's liability claims, non-current and other 2,266 4,406
Deferred income taxes 59,799 44,414
Shareholders' equity 465,779 412,745
-------- --------
Total Liabilities & Shareholders' Equity $670,754 $666,142
======== ========
</TABLE>
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MARINE DRILLING COMPANIES, INC.
SELECTED SEGMENT INFORMATION
(Dollars in thousands)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
---------------------------------------------------------------
SEPTEMBER 30, June 30, September 30,
2000 2000 1999
------------- -------- -------------
<S> <C> <C> <C>
REVENUES
Jack-up rigs:
Gulf of Mexico $40,405 $ 29,048 $ 14,825
International 3,282 (84) --
------- -------- --------
Total Jack-up rigs 43,687 28,964 14,825
Semisubmersible rigs 28,820 29,998 20,438
------- -------- --------
72,507 58,962 35,263
------- -------- --------
CONTRACT DRILLING EXPENSE
Jack-up rigs:
Gulf of Mexico 21,151 16,636 13,127
International 1,921 5,886 1,268
------- -------- --------
Total Jack-up rigs 23,072 22,522 14,395
Semisubmersible rigs 6,831 7,045 5,406
------- -------- --------
29,903 29,567 19,801
------- -------- --------
RIG OPERATING MARGIN
Jack-up rigs:
Gulf of Mexico 19,254 12,412 1,698
International 1,361 (5,970) (1,268)
------- -------- --------
Total Jack-up rigs 20,615 6,442 430
Semisubmersible rigs 21,989 22,953 15,032
------- -------- --------
$42,604 $ 29,395 $ 15,462
======= ======== ========
OPERATING DAYS/AVAILABLE DAYS
Jack-up rigs:
Gulf of Mexico 1,232 / 1,248 1,076 / 1,092 918 / 1,078
International 85 / 184 -- / 273 0 / 246
------------- ------------- --------------
Total Jack-up rigs 1,317 / 1,432 1,076 / 1,365 918 / 1,324
Semisubmersible rigs 184 / 184 182 / 182 144 / 165
------------- ------------- --------------
1,501 / 1,616 1,258 / 1,547 1, 062 / 1,489
============= ============= ==============
UTILIZATION 93% 81% 71%
</TABLE>
