Thursday, April 13 2000
The improvement in results between the first quarters of 1999 and 2000 was largely due to the contribution of the drilling division. Results for the first quarter of 2000 were negatively impacted by mobilization expense of approximately $3.2 million, or about $.02 per share, to relocate Gorilla IV and the Arch Rowan from the North Sea to the Gulf of Mexico.
"Quarter- to-quarter comparisons reflect the volatility in the contract drilling business," Palmer commented. He said Rowan's offshore rig utilization was 86% during the first quarter of 2000, versus 49% in the first quarter of 1999 and 83% in the fourth quarter of 1999. "Our average offshore day rate during the first quarter of 2000," he noted, "was $42,600, versus $57,300 in the first quarter of 1999 and $38,600 in the fourth quarter of 1999."
"The relocation of Gorilla IV and the Arch Rowan completes our redeployment of Rowan assets to our two most promising markets at present, the Gulf of Mexico and offshore eastern Canada.," said Palmer. "We continue to believe that the fundamentals are in place for continued improvement in the company's financial performance."
chairman's pay doubles
Last year, reports the newspaper, Fricks, who is also the shipyard's chief executive, earned $2.74 million in salary, bonuses and other compensation. He made $1.33 million in 1998 and $593,836 in 1997.
The paper cites a shipyard statement crediting Fricks for "leading the company's outstanding financial performance in 1999 through substantial challenges that included a merger attempt, two unsolicited takeover proposals and a labor dispute.''
Despite the distractions, the yard's earnings rose 47 percent to $97 million, or $2.72 a share, last year.
Fricks' 1999 compensation includes $560,000 in base salary, an annual bonus of $850,000, a long-term incentive payout of $1,017,500 and other compensation of $310,915. He also received options to buy 61,040 shares of company stock.
Those options are "underwater,'' meaning the exercise price is above the stock's current trading price. The exercise price is $32.44 each, and the stock closed Wednesday at $30.31 a share, unchanged for the day.
However, Fricks has until Jan. 3, 2009,
to exercise the options. Should the stock price rise 10 percent
a year, the options could be worth $3.16 million.
on managing High-Speed Commercial Vessel Traffic
Commission approves shipbuilding aid schemes in Netherlands.
The prolonged shipbuilding aid scheme, which is unchanged from that approved by the Commission in 1999, provides contract-related aid to Dutch shipyards in the form of grants for the building of ships. Expenditure under this scheme in 2000 is expected to be HFL 130 million (about $60million).
What all this means is that for the remainder
of 2000, funds hitherto available for interest rate support for
exports of ships will now be used as direct grants to exporting
Dutch shipyards of up to 3.5% of the contract value. Expenditure
under these new arrangements for the export of ships in 2000
On April 3 it announce that its main shareholder, Bjarne Skeie, had assumed the position as Chairman of the Board of Ocean Rig, succeeding Tom B. Knudsen whocontinues as legal advisor to the company.
On April 10, it announced that the Board
of Directors had decided to change the company's business strategy.
"The company will now create value for the shareholders
by actively seeking to participate in the ongoing restructuring
and consolidation of the drilling industry," said a statement
which added that
Meantime, Umoe Olje og Gass AS (Umoe),
the independent project evaluation team hired under Ocean Rig's
January 2000 settlement agreement with Friede Goldman, has confirmed