Article: Drillers Set to Report Plunge in Profits, as Weak Gas.(Offshore and land drilling contractors report lower profits)(Brief Article)(Statistical Data Included)

Drillers Set to Report Plunge in Profits, as Weak Gas Market Cuts into Rates

Offshore and land drilling contractors are expected to see earnings plunge in the fourth quarter, after weak natural gas prices in North America undermined rig utilization and dayrates.

Mark Urness, an oil-field services analyst at Salomon Smith Barney, said he expects nine offshore drilling companies covered by the brokerage firm to see earnings drop by more than 22%, primarily because of the weak Gulf of Mexico jackup market. "There should be more disappointments than positives," Urness said. Most companies will report at or below expectations, even with lowered estimates ...

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