GLM Poised For A Strong 2001
Global Marine (GLM) is a holding company that provides offshore contract drilling services on a dayrate basis and offshore drilling management services on a dayrate or fixed-price basis. The company has an active fleet of 31 mobile offshore drilling rigs and two ultra deep-water drillships under construction.
The company also participates in offshore oil and gas exploration and development projects: operations conducted mainly in the U.S., the U.K., Nigeria, Canada and other countries abroad. Contract drilling accounted for 64 percent of 1999 revenues; drilling management services 35 percent and oil and gas, one percent.
On January 18 the company reported net income for the year ended December 31, 2000, of $113.9 million on revenues of $1 billion. This compares to net income of $89.5 million on revenues of $791 million for the year ended December 31, 1999. For the quarter ended December 31, 2000, the company reported net income of $40.9 million on revenues of $332 million, as compared to net income of $10.7 million on revenues of $199 million for the same quarter of 1999.
Global Marine chairman, president and CEO Bob Rose said, "Our industry had an eventful year in 2000 as oil and gas prices soared and exploration and production companies stepped up their drilling programs. During 2000, worldwide offshore rig utilization increased to 82 percent from a year-end 1999 level of 72 percent. In the Gulf of Mexico, utilization of jackup rigs approached 90 percent, and dayrates for most classes of these rigs more than doubled." At Global Marine, seven rigs that had been idled for lack of work returned to service during 2000. and two new ultradeep-water, dynamically-positioned drillships began earning dayrate. By year-end 2000, Global Marine's rig utilization rate had increased to 91 percent from 71 percent at the beginning of the year, and the two remaining idle semisubmersible rigs were preparing to begin operations in the first quarter of 2001.
"Our drilling management services segment achieved record levels of activity during 2000," Rose said. "Over the course of the year, we drilled 122 turnkey wells and captured a 65 percent share of the Gulf of Mexico turnkey market. However, due to a number of difficult wells, this segment's fourth quarter operating profit declined to $2.1 million from $6.2 million for the same period in the previous year." For the full year, drilling management services contributed $21.6 million of operating profit, the third highest level in the company's history. On 2001, Rose said, "Our business is poised for very strong financial performance in the coming year.
Customer budgets are projected to increase an average of about 20 percent in 2001, with activity in the international markets expected to accelerate as the major oil companies refocus on internal growth opportunities. In addition, the Gulf of Mexico rig market should continue to tighten as the industry drills aggressively to meet the need for new natural gas supplies." In 2001, Global Marine will also benefit from the fullyear contribution of the new drillships placed in service during 2000. The Glomar C.R. Luigs and the Glomar Jack Ryan are state-of-the-art rigs and represent the culmination of a five-year capital investment program to expand the company's deep-water capabilities.
During 2000. Global Marine's capital spending totaled $178 million and was dominated by final construction and commissioning costs of the two new drillships. "With these projects completed," said Rose, "our anticipated capital requirements for 2001 will be reduced by almost 50 percent." Nearly half of the company's preliminary capital budget for 2001 is earmarked for rig upgrades to meet growing customer demand for deeper and more highly deviated wells. "These enhancements are expected to generate only minimal unpaid downtime," Rose added. In answer to concerns about the speculative construction of new offshore drilling rigs in the foreseeable future.
Rose said, "Global Marine will not build new rigs on a speculative basis. If and when the market demands new rigs, term contracts will be available to support construction."
Other stories from April 2001 issue
- The New Knowledge Brokers? page: 8
- Crowley Launches Refurbishment Of 25 Seagoing Tugs page: 9
- Boat-Park.com — The Virtual Trade Show That Never Sleeps page: 12
- LevelSeas Buys SeaLogistics page: 12
- Proposed Regulations Regarding Source of Income From Activities In Intl. Waters page: 14
- COMSAT Mobile Communications Working With U.S. Coast Guard To Save Lives At Sea page: 18
- ASNE Day 2001 To Feature Timely Technical Papers, Informative Exhibits page: 20
- Adsteam To Buy Howard Smith page: 22
- Bollinger To Construct Pair of Vessels For Seacor Marine page: 24
- Holland America's New Ship Points Toward New Visa page: 25
- Cruise + Ferry 2001 Preview page: 25
- Radiance of the Seas — A First Class Delivery page: 26
- Cruise Lines Equip Fleets With Emergency Smoke Hoods page: 27
- Blount Retires From ACCL; Names Daughter As Successor page: 28
- Help Protect Interiors With SS Sanparrel page: 31
- The FPU Market Is Primed To Produce page: 33
- CWWS Delivers 200 Separators To Tidewater page: 38
- A Leg Up on the Competition page: 40
- Seacor Continues Rational Fleet Expansion page: 44
- GLM Poised For A Strong 2001 page: 46
- Friede Goldman Halter Negotiates $100M Financing page: 48
- Clamp Supplier Dives Into Project page: 49
- Dockwise Performs Timely Delivery Of Shell's Brutus page: 50
- Bollinger Wins K-Sea DH Barge Contract page: 52
- Telenor To Acquire COMSAT page: 52
- First Order For Dolphin Propulsion System page: 54
- Stena Discovery Performance Improved With Enhanced Steering System page: 54
- Voith Adds To Its Innovative Range page: 58
- Wartsila: Smokeless by Common Rail page: 64
- Wartsila, Marioff To Cooperate On Emission Control Technolgy page: 65
- Technology, Image Top Inland Agenda page: 66
- Leading Societies Launch Sweeping Safety Initiatives page: 73
- IZAR Delivers For Stena page: 74
- Furuno's New NavNet Is Compact, Seamless page: 74
- Finland: Cradle of Marine High-Tech page: 75