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Parker Drilling Company Reports Operating Results (10-Q)

November 08, 2010 | About:
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10qk

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Parker Drilling Company (PKD) filed Quarterly Report for the period ended 2010-09-30.

Parker Drilling Company has a market cap of $500.06 million; its shares were traded at around $4.28 with a P/E ratio of 61.14 and P/S ratio of 0.66. Parker Drilling Company had an annual average earning growth of 3.2% over the past 10 years.PKD is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

For the third quarter of 2010 we recorded net income of $0.5 million, or $0.00 per diluted share on revenues of $172.0 million, compared with net income of $7.1 million, or $0.06 per diluted share on revenues of $181.4 million for the third quarter of 2009. The results reflect higher revenues and operating gross margins as a percent of revenues for our Rental Tools segment and higher revenues and earnings from our Project Management and Engineering Services segment. Our U.S. Drilling segment contributed higher revenues but lower earnings, while the International Drilling segment reported lower revenues and lower earnings.

The results of the third quarter of 2010 included $3.2 million of revenue related to the cancellation of a rig in Kazakhstan, $6.4 million of expense related to a non-cash charge to write off certain VAT assets in PDKBV, $2.4 million of expense for property and sales tax assessments in the U.S. and Kazakhstan, $0.4 million negative impact related to percentage-of-completion accounting for the Liberty Project, and $1.1 million of expense related to the ongoing DOJ and SEC investigations and Parkers internal review regarding possible violations of the Foreign Corrupt Practices Law and other laws.

Revenues in our Americas region increased by $4.2 million mainly due to higher rig utilization in the third quarter of 2010 compared with the same period in the prior year and recognition of demobilization revenue of $1.2 million on one of our contracts cancelled during the quarter. Revenues in our CIS/AME region decreased by $11.6 million primarily due to lower fleet utilization and a lower average dayrate during the third quarter of 2010, partially offset by $3.2 million of revenue related to cancellation of a rig in Kazakhstan. Additionally, rig 257, our Caspian Sea Arctic barge rig was on a zero dayrate during part of the quarter while it completed its repair, refurbishment and upgrade program. In our Asia Pacific region, revenues decreased $2.9 million due primarily to lower utilization in New Zealand and Indonesia and reduced dayrates in Indonesia in the third quarter of 2010 compared with the same period in 2009.

International Drilling operating gross margin, excluding depreciation and amortization, decreased $19.7 million to $2.3 million during the current quarter of 2010, as compared to the third quarter of 2009. Operating gross margin for the third quarter of 2010 was impacted by lower revenues and higher operating costs. Operating gross margins for the third quarter of 2010 also included $6.4 million of expense related to a non-cash charge to write-off certain VAT assets and $1.7 million of expense for property tax assessments and other tax matters, partially offset by $3.2 million of revenue related to cancellation of a rig, all of which occurred in Kazakhstan.

Interest expense decreased $0.7 million for the third quarter of 2010 as compared to the third quarter of 2009, due to $2.1 million more of interest capitalized to support rig construction, offset by higher interest expense from new borrowings of $1.1 million and increased debt amortization costs of $0.4 million. Interest income was minimal in each quarter.

We recorded a net loss of $1.1 million for the nine months ended September 30, 2010, as compared to net income of $13.6 million for the nine months ended September 30, 2009. Operating gross margin was $47.5 million for the nine months ended September 30, 2010 as compared to $69.1 million for the nine months ended September 30, 2009.

Read the The complete Report

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