Page 46: of Maritime Reporter Magazine (April 2001)

Offshore Report

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 con- struction. The company also participates in offshore oil and gas exploration and development projects: operations con- ducted mainly in the U.S., the U.K.,

Nigeria, Canada and other countries abroad. Contract drilling accounted for 64 percent of 1999 revenues; drilling

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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 Decem- ber 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 rev- enues of $199 million for the same quar- ter 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, world- wide offshore rig utilization increased to 82 percent from a year-end 1999 level of 72 percent. In the Gulf of Mexico, uti- lization of jackup rigs approached 90 percent, and dayrates for most classes of these rigs more than doubled." At Glob- al Marine, seven rigs that had been idled for lack of work returned to service dur- ing 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

Global Marine Inc. & Subsidiaries

Condensed Consolidated Statement of Incomc (In millions, except per share amounts)

Three Months End Twelve Months End

December 31, December 31, 2000 1999 2000 1999

Revenues:

Contract drilling $171.3 $103.1 $584.1 $507.7

Drilling management 154.5 92.4 435.6 275.0

Oil and gas 6.6 3.2 20.1 8.3

Total revenues 332.4 198.7 1,039.8 791.0

Expenses:

Contract drilling 82.7 63.9 299.3 271.1

Drilling management 152.4 86.2 413.8 261.5

Oil and gas U 0.6 3.4 2.7

Dep., depletion, and amortization 29.4 23.1 107.0 88.8

Restructure costs - - 5.2 -

General and administrative 4.9 6.4 22.6 23.6

Total operating expenses 270.5 180.2 851.3 647.7

Operating income 61.9 18.5 188.5 143.3

Results of Operations by Business Segment (Dollars in millions, except for average dayrate)

Three Months End Twelve Months End

December 31, December 31, 2000 1999 2000 1999

Revenues:

Contract drilling $172 $106.9 $589.2 $517.7

Drilling management 156.7 93.6 445.6 282.2

Oil and ga 6.6 3.2 20.1 8.3

Elimination (2.9) (5.0) (15.1) (17.2)

Total revenues $332.4 $198.7 $1,039.8 $791.0

Average rig utilization rate 90% 70% 84% 76%

Average dayrate $63,900 $53,000 $59,000 $59,600

Turnkey wells drilled 47 24 122 76

Turnkey well completions 6 7 27 16 46 www.maritimetoday.com Maritime Reporter & Engineering News