Chiles Offshore Announces 4Q Results
Tuesday, February 13, 2001
For the fourth quarter ended December 31, 2000, the Chiles Offshore reported net income of $4,401,000 on revenues of $16,752,000. In the corresponding quarter ended December 31, 1999, the company reported a net loss of $2,234,000 on revenues of $5,274,000. For the 12 months ended December 31, 2000, and excluding the effect of certain one time, non-cash charges related to the September 22, 2000 initial public offering of common stock, the company reported net income of $11,559,000 on revenues of $56,006,000. In the corresponding 12 months ended December 31, 1999, the company reported a net loss of $3,963,000 on revenues of $8,596,000.
On July 20, 2000 the company entered into an agreement with Perforadora Central, S.A. de C.V. of Mexico, to acquire all of the equity of an entity that will own the ultra-premium jackup rig Tonala, which has been operated by the company under a bareboat charter since the completion of construction and final commissioning of the rig in April 2000. Under the terms of the agreement, the company will issue 2,679,723 shares of common stock and assume approximately $65 million of debt guaranteed by the U.S. Maritime Administration (MarAd). MarAd approved the agreement and assumption of debt on December 6, 2000 and the company expects the acquisition to close in the second quarter of 2001.
William Chiles, Chief Executive Office, said "We continue to be optimistic that activity will be sustained at current levels or even increase. The draw down in gas inventory during the winter heating season has reduced inventories below last year's levels for the same time period. If the rest of the winter is normal, we expect gas inventory to be at levels that will require sustained drilling programs in order to replenish them to acceptable levels. "During the fourth quarter the Minerals and Management Service adopted a program that will give producers royalty relief for producing deep formation gas (gas produced from below 15,000 ft.). The program is effective should gas process decline to $3.50. While today's prices are comfortably above these levels we think this program could provide significant support in the future."