GlobalSantaFe Announces 4Q, 2005 Earnings

GlobalSantaFe Corporation announced that the continuing surge in demand and dayrates for offshore oil and gas contract drilling services helped drive operating income sharply higher and boost net income in the fourth quarter of 2005 to $180.2 million, or 73 cents per diluted share, on revenues of $603.5 million, compared with a net loss of $7.6 million, or 3 cents per diluted share, on revenues of $498.3 million in the fourth quarter of 2004. The improved fourth quarter 2005 results included an after-tax gain of $23.5 million, or 9 cents per diluted share, resulting from the sale of the Glomar Robert F. Bauer drillship. Results for the comparable period of 2004 included a tax charge of $42.5 million, or 18 cents per diluted share, related to the realignment of the company's subsidiary structure. For the 12 months ended Dec. 31. 2005, GlobalSantaFe reported net income of $423.1 million, or $1.73 per diluted share, on revenues of $2.3 billion. These results compare with 2004 income from continuing operations of $31.4 million, or 13 cents per diluted share, which included net after-tax charges of $25.8 million, or 11 cents per diluted share, related to the subsidiary realignment and early retirement of debt, partially offset by gains from the sale of a portion of the company's interest in the Broom Field and insurance proceeds related to the loss of the jackup GSF Adriatic IV. The company estimates that hurricanes Katrina and Rita had an unfavorable impact on its fourth quarter 2005 net income of approximately $17 million, or 7 cents per diluted share.