Offshore oil drilling contractor Global Marine Inc.
said on Tuesday its first-quarter earnings tripled, in line with expectations, as demand for contract drilling in core markets offset a lull in demand for its management services.
Houston-based Global Marine, which has 33 drilling rigs worldwide and is the world's largest offshore-drilling management firm, reported first-quarter net income of $40.7 million, or $.23 a share. That compared with net income of $12.6 million, or $.7 a share, a year earlier, the company reportedly said.
Wall Street analysts had estimated the company would report quarterly earnings ranging between $.22 to $.28 a share with a consensus of $.24 a share, according to research firm Thomson Financial/First Call
Global Marine's revenues rose 35 percent to $275 million from $204 million a year earlier. The company's revenues from its contract drilling segment rose 68 percent to $185 million from $110 million a year earlier. Revenues from its drilling management segment, however, fell 7 percent to $84 million from $90 million a year earlier.
The company said it saw a "typical" first-quarter lull in turnkey drilling in the Gulf of Mexico, but expects that to increase in the second-quarter, driving up demand and revenues for its drilling management services.