Noble Energy reported a 70% jump in second quarter net income to $29.1 million, or 51 cents per share. Discretionary cash flow increased 26% to $152.3 million. Excluding the effect of a non-cash write down of assets held for sale, net income would have been $32.3 million, or 56 cents per share. The increase in reported net income and discretionary cash flow was primarily a result of higher realized commodity prices. Realized natural gas prices were up 34% to $4.11/Mcf and realized crude oil prices were up 6% to $25.84/bbl. The company’s improved financial performance also resulted from the recent start-up of two significant international projects, production from the Cheng Dao Xi (CDX) field in south Bohai Bay offshore China and production from the company’s offshore Amistad natural gas field and associated electrical power production in Ecuador. Compared to the first quarter 2003, domestic production volumes increased 6% to 69,033 Boe/d but compared to 2Q02 production were down 3% due to natural decline rates in the Gulf of Mexico and onshore Gulf Coast region. The company plans to drill a total of 72 onshore wells in 2003, of which 37 are scheduled for the Gulf Coast area and 35 are scheduled for the Midcontinent and Rocky Mountain areas.

Drilling contractor GlobalSantaFe Corp. reported a 40% drop in net income in the second quarter to $43.9 million, or $0.19 per diluted share, compared to the same quarter in 2002 due primarily to lower operating income in the contract drilling segment. Net income for the first half of the year also was down 40%. The contract drilling segment reported operating income of $60.2 million for the second quarter of 2003, down from $97.9 million in the second quarter of 2002, due to lower dayrates and utilization for the company’s land and marine rig fleets partly offset by lower operating expenses. Marine fleet utilization averaged 88%, down one percentage point from 2Q02. The company’s land fleet utilization declined to 52% from 69% last year. “Notwithstanding the continued softness in certain of our key markets, we are generally pleased with the results for the second quarter of 2003, which were better than we anticipated going into the quarter, due primarily to increased revenues and lower operating costs,” said GlobalSantaFe CEO Jon Marshall. GlobalSantaFe is a worldwide drilling contractor with a fleet of 59 offshore rigs and 31 land rigs. It is the world’s leading provider of turnkey drilling and drilling management services.

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