GLBL: RBC Capital Keeps @ Sector Perform; Ups Tgt to $18 vs $16; Analyst Notes
Wednesday, April 19, 2006 09:52 ET
Issuer: Global Industries Ltd (NasdaqNM: GLBL)
Analyst Firm: RBC Capital Markets
Ratings Action: REITERATION
Current Rating: Sector Perform
Target Price Action: INCREASE
Target Price: $18.00 (+12.50% from $16.00)
Analyst Comments: GLBL has announced that it has been awarded an ~$130mn contract from PEMEX.
Energy services are hot. Sounds like a good one to hold over earnings. My sector fund holding has been volatile, but in a strong uptrend
(http://mdteague.com/Esvc.png)
Earnings came out early! And you know why? These are AMAZING results!! Way over estimates! And a huge backlog! :o
Thx for the heads up Lusitano ;)
GLBL will open with a huge gap... Now to come up with the trade plan. :o
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QuoteGlobal Industries, Ltd. Announces Operating Results for the First Quarter Ended March 31, 2006
Wednesday May 3, 6:35 pm ET
http://biz.yahoo.com/prnews/060503/daw032.html?.v=55
CARLYSS, La., May 3 /PRNewswire-FirstCall/ -- Global Industries, Ltd. (Nasdaq: GLBL - News) announced results for the first quarter ended March 31, 2006. Revenues were $246.3 million for the first quarter of 2006, an improvement of $109.0 million, or 79%, over the same period a year ago. Gross profit was $48.1 million for the quarter, an improvement of $23.8 million, or 98%, compared to last year's first quarter. Net income increased by $11.3 million to $18.8 million, or $0.16 per diluted share, for the first quarter of 2006, as compared to net income of $7.5 million or $0.07 per diluted share for the same period last year.
During the first quarter of 2006, our operations management and internal financial reporting were reorganized into five business units: Gulf of Mexico, Latin America, West Africa, Middle East (including India), and Asia Pacific. Each of these business units includes both offshore construction activities and diving activities for a particular region of the world. Management has determined that the Gulf of Mexico business unit includes two reportable segments under Statement of Financial Accounting Standards ("SFAS") No. 131, "Disclosures About Segments of an Enterprise and Related Information," and as a result will present six segments in the notes to the financial statements: Gulf of Mexico OCD, Gulf of Mexico Diving, Latin America, West Africa, Middle East, and Asia Pacific. The amounts shown for the comparable period in 2005 have been restated to correspond to the new presentation.
The improvement in gross profit was primarily due to an increase in our overall level of construction activity due to sustained high energy prices and the effects of two major hurricanes in the Gulf of Mexico which occurred in the latter part of 2005. Results improved substantially in West Africa, the Middle East, and in both of our Gulf of Mexico segments. Activity declined in Asia Pacific due to the temporary mobilization of vessels to the Middle East and the inactivity of the Hercules during scheduled repairs and upgrades. The activity of our major construction vessels in Latin America declined between comparable quarters. During the first quarter of 2006, our operations in Mexico transitioned from idleness to activity as we began a series of major projects in this region.
During the first quarter of 2006, we booked $360.0 million of new work resulting in a backlog of $689.9 million as of March 31, 2006 compared to a backlog of $359.3 million as of March 31, 2005.
Effective January 1, 2006, the Company implemented SFAS No. 123R, "Share- Based Payment," which requires, among other things, the expensing of stock options which were previously not reflected in the Company's results of operations. Adoption of this standard resulted in a charge to earnings of less than $0.01 per diluted share.
William J. Dore, Global's Chairman and Chief Executive Officer, said, "I am pleased to announce these improved results and look forward to the remainder of this promising year. Our international backlog has increased to $661.7 million, demand for our services in the U.S. Gulf of Mexico continues to be very strong, and our longer-term prospects are improving as the market expectations regarding energy prices, which drive our business trend toward higher pricing for our services. There will continue to be the risk of mechanical issues with these older vessels as utilization increases, but we are making every attempt to anticipate problems by implementing our computerized maintenance management system."
A conference call will be held at 9:00 a.m. Central Daylight Saving Time on Thursday, May 4, 2006. Anyone wishing to listen to the conference call may dial 888.790.9477 or 210.234.9633 and ask for the "Global First Quarter Earnings" call. Phone lines will open fifteen minutes prior to the start of the call. The call will also be webcast in real time on the Company's website at http://www.globalind.com , where it will also be archived for anytime reference until May 19, 2006.
All individuals listening to the conference call or the replay are reminded that all conference call material is copyrighted by Global and cannot be recorded or rebroadcast without Global's express written consent.
Global Industries provides pipeline construction, platform installation and removal, diving services, and other marine support to the oil and gas industry in the Gulf of Mexico, West Africa, Asia Pacific, the Mediterranean, Middle East/India, South America, and Mexico's Bay of Campeche. The Company's shares are traded on The NASDAQ National Market under the symbol "GLBL."
This press release may contain forward-looking information based on current information and expectations of the Company that involve a number of risks, uncertainties, and assumptions. Among the factors that could cause the actual results to differ materially are: industry conditions, prices of crude oil and natural gas, the Company's ability to obtain and the timing of new projects, and changes in competitive factors. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual outcomes could vary materially from those indicated.
Set forth are the Company's
results of operations and
selected balance sheet amounts
for the periods indicated
---------------------------------
(In thousands, except
per share amounts)
---------------------------------
Three Months Three Months
Ended March 31, Ended March 31,
---------------- ----------------
Results of Operations 2006 2005
---------------- ----------------
Revenues $ 246,267 $ 137,256
Cost of Operations 198,137 112,959
---------------- ----------------
Gross Profit 48,130 24,297
Net (Gain) on Asset Disposal (291) (112)
Selling, General and
Administrative Expenses 16,286 10,282
---------------- ----------------
Operating Income 32,135 14,127
---------------- ----------------
Other Expense (Income):
Interest Expense 2,036 2,384
Other (33) (729)
---------------- ----------------
Income Before Income Taxes 30,132 12,472
Income Taxes 11,368 4,976
---------------- ----------------
Net Income $ 18,764 $ 7,496
================ ================
Earnings Per Common Share
Basic Earnings Per Share $ 0.16 $ 0.07
Diluted Earnings Per Share 0.16 0.07
Weighted Average Common
Shares Outstanding:
Basic 114,171 112,603
Diluted 115,609 114,476
Other Data
Depreciation and Amortization $ 14,455 $ 12,030
Backlog at end of period 689,900 359,334
As of As of
March 31, December 31,
2006 2005
------------- --------------
Selected Balance Sheet Amounts
Cash $ 114,289 $ 128,615
Working Capital (including cash) 246,404 232,050
Total Assets 897,493 857,314
Debt 75,240 77,220
Shareholders' Equity 521,115 496,805
Set forth are the Company's
results of operations and
selected balance sheet amounts
for the periods indicated
---------------------------------
(In thousands)
---------------------------------
Three Months Three Months
Ended March 31, Ended March 31,
---------------- ----------------
2006 2005(1)
---------------- ----------------
Reportable Segments
----------------------------------
Total Segment Revenues
Gulf of Mexico OCD $ 59,992 $ 23,318
Gulf of Mexico Diving 29,461 13,520
Latin America 62,494 65,756
West Africa 33,081 3,518
Middle East 72,271 24,882
Asia Pacific 5,348 10,370
---------------- ----------------
Subtotal 262,647 141,364
Intersegment Eliminations (16,380) (4,108)
---------------- ----------------
Consolidated Revenues $ 246,267 $ 137,256
================ ================
Income (Loss) Before Taxes
Gulf of Mexico OCD $ 11,631 $ 9,921
Gulf of Mexico Diving 7,930 4,830
Latin America (1,112) 2,476
West Africa 4,083 (4,116)
Middle East 11,921 6,509
Asia Pacific (3,849) (7,585)
Over (under) allocated
corporate expenses (472) 437
---------------- ----------------
Consolidated Income Before Taxes $ 30,132 $ 12,472
================ ================
(1) The amounts shown for the quarter ended March 31, 2005 have been
restated to conform to the new presentation of segments adopted in
the quarter ended March 31, 2006.
----------------------------
Bot half position planned today, seems breakout up. Huge volume.