HERCULES OFFSHORE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL AND OPERATING DATA
(Dollars in thousands, except per day amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
Domestic Contract Drilling Services
Segment:
Number of rigs (as of end of
period) 6 9 6 9
Operating days 548 571 1,424 1,783
Available days 552 598 1,526 1,849
Utilization (1) 99.3% 95.5% 93.3% 96.4%
Average revenue per rig per day
(2) $84,776 $49,471 $78,449 $44,552
Average operating expense per rig
per day (3) $25,871 $23,483 $24,644 $20,216
Revenues $46,415 $28,248 $111,703 $79,427
Operating expenses, excluding
depreciation and amortization $14,280 $14,043 $37,606 $37,379
Depreciation and amortization $2,538 $1,410 $6,279 $4,020
General and administrative
expenses, excluding
depreciation and amortization $1,846 $598 $5,219 $3,463
Operating income $27,751 $12,197 $62,599 $34,565
International Contract Drilling
Services Segment:
Number of rigs (as of end of
period) 3 - 3 -
Operating days 100 - 133 -
Available days 100 - 137 -
Utilization (1) 100.0% - 97.1% -
Average revenue per rig per day
(2) $78,825 - $91,486 -
Average operating expense per rig
per day (3) $40,466 - $41,147 -
Revenues $7,883 - $12,159 -
Operating expenses, excluding
depreciation and
amortization $4,047 - $5,650 -
Depreciation and amortization $935 - $1,186 -
General and administrative
expenses, excluding depreciation
and amortization $442 - $949 -
Operating income $2,459 - $4,374 -
Domestic Marine Services Segment:
Number of liftboats (as of end of
period) 47 39 47 39
Operating days 3,171 2,566 8,823 5,784
Available days 4,119 3,220 11,276 7,592
Utilization (1) 77.0% 79.7% 78.2% 76.0%
Average revenue per liftboat per
day (2) $12,641 $5,432 $10,863 $5,859
Average operating expense per
liftboat per day (3) $3,238 $2,409 $2,961 $2,395
Revenues $40,082 $13,937 $95,842 $33,888
Operating expenses, excluding
depreciation and amortization $13,339 $7,757 $33,389 $18,184
Depreciation and amortization $5,171 $2,334 $14,059 $5,035
General and administrative
expenses, excluding
depreciation and amortization $618 $412 $1,780 $1,233
Operating income $20,954 $3,434 $46,614 $9,436
International Marine Services
Segment:
Number of liftboats (as of end of
period) 4 - 4 -
Operating days 235 - 947 -
Available days 368 - 1,092 -
Utilization (1) 63.9% - 86.7% -
Average revenue per liftboat per
day (2) $12,050 - $10,494 -
Average operating expense per
liftboat per day (3) $4,158 - $4,348 -
Revenues $2,832 - $9,938 -
Operating expenses, excluding
depreciation and
amortization $1,531 - $4,748 -
Depreciation and amortization $426 - $979 -
General and administrative
expenses, excluding
depreciation and amortization $721 - $2,075 -
Operating income $154 - $2,136 -
Total Company:
Revenues $97,212 $42,185 $229,642 $113,315
Operating expenses, excluding
depreciation and
amortization $33,197 $21,800 $81,393 $55,563
Depreciation and amortization $9,097 $3,753 $22,582 $9,075
General and administrative
expenses, excluding
depreciation and amortization $7,209 $4,031 $20,396 $9,136
Operating income $47,709 $12,601 $105,271 $39,541
Interest expense $2,575 $2,735 $6,824 $7,572
Loss on early retirement of debt $- $- $- $2,786
Gain on disposal of asset $1,110 $- $30,690 $-
Other income $874 $244 $2,697 $479
Income before income taxes $47,118 $10,110 $131,834 $29,662
Income tax expense $17,439 $- $48,310 $-
Net income $29,679 $10,110 $83,524 $29,662
(1) Utilization is defined as the total number of days our rigs or
liftboats, as applicable, were under contract, known as operating
days, in the period as a percentage of the total number of available
days in the period. Days during which our rigs and liftboats were
undergoing major refurbishments, upgrades or construction, which
included Rig 16, Rig 21, Rig 26 and Rig 31, or cold-stacked units,
which included three of our liftboats, are not counted as available
days. Days during which our liftboats are in the shipyard undergoing
drydocking or inspection are considered available days for the
purposes of calculating utilization.
(2) Average revenue per rig or liftboat per day is defined as revenue
earned by our rigs or liftboats, as applicable, in the period divided
by the total number of operating days for our rigs or liftboats, as
applicable, in the period. Included in revenue is a total of
US$722,564 and US$847,564 related to amortization of deferred
mobilization revenue and contract specific capital expenditures
reimbursed by the customer for the three and nine months ended
September 30, 2006, respectively. Included in revenue for our
International Contract Drilling Services segment for the nine months
ended September 30, 2006 is US$2,010,000 earned for a timely
departure of Rig 16 from the shipyard in the second quarter of 2006.
(3) Average operating expense per rig or liftboat per day is defined as
operating expenses, excluding depreciation and amortization, incurred
by our rigs or liftboats, as applicable, in the period divided by the
total number of available days in the period. We use available days
to calculate average operating expense per rig or liftboat per day
rather than operating days, which are used to calculate average
revenue per rig or liftboat per day, because we incur operating
expenses on our rigs and liftboats even when they are not under
contract and earning a dayrate. In addition, the operating expenses
we incur on our rigs and liftboats per day when they are not under
contract are typically lower than the per-day expenses we incur when
they are under contract. Included in operating expense is a total of
US$552,918 and US$571,949 related to amortization of deferred
mobilization expenses for the three and nine months ended September
30, 2006, respectively.
Web site: http://www.herculesoffshore.com
Stephen M. Butz, Vice President and Treasurer, Hercules Offshore, Inc., +1-713-979-9832. Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20050601/DAW092LOGO ; AP Archive: http://photoarchive.ap.org ; PRN Photo Desk, photodesk@prnewswire.com
