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Gas industry

Reading & Bates Corporation Reports Net Income of $2.4 Million in Q2 1995

Strategic Insights

— 1 min read

The Reading & Bates Corporation, a leading offshore drilling services provider, announced its financial results for the quarter ended June 30, 1995, showing a significant improvement from the previous year's net loss. The company reported a net income of $2.4 million, or $0.02 per share after preferred stock dividends, on revenues of $50.4 million for the second quarter of 1995. This is a substantial contrast to the net loss of $6.0 million, or $0.13 loss per share after preferred stock dividends, on revenues of $39.5 million for the same quarter in 1994. The increase in revenues is largely attributed to higher fleet utilization, with the company's utilization rate for the second quarter of 1995 reaching 83 percent, compared to 69 percent for the same quarter in 1994.

Key Takeaways:

  • The Reading & Bates Corporation reported a net income of $2.4 million in Q2 1995, compared to a net loss of $6.0 million in Q2 1994.
  • Revenues for the quarter ended June 30, 1995, were $50.4 million, a significant increase from $39.5 million in the same quarter of 1994.
  • The company's fleet utilization rate for the second quarter of 1995 was 83 percent, compared to 69 percent for the same quarter in 1994.
  • The increase in revenues is mainly attributable to higher dayrate contracts, with the company's core fleet being 100 percent contracted as of the third quarter.
  • The company has a strong order book, with a recently announced contract award for the "JACK BATES" in the U.K. sector of the North Atlantic.
  • Reading & Bates is a New York Stock Exchange listed company, engaging in offshore drilling services throughout the world, with its wholly owned subsidiary, Reading & Bates Development Co., providing technical, construction and project management services.

Statistics:

  • Net income: $2.4 million (Q2 1995) vs. $-6.0 million (Q2 1994)
  • Revenues: $50.4 million (Q2 1995) vs. $39.5 million (Q2 1994)
  • Fleet utilization rate: 83% (Q2 1995) vs. 69% (Q2 1994)
  • Total other income (expense): $-1.2 million (Q2 1995) vs. $-1.2 million (Q2 1994)

Sources:

  • PRNewswire, July 19, 1995
  • Reading & Bates Corporation, Quarterly Report, June 30, 1995

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