Parker Drilling Company PKD, an
international drilling contractor, drilling services and rental tools
provider, today announced that the Company has reached an agreement in
principle with the United States Department of Justice (DOJ) and the staff of
the United States Securities and Exchange Commission (SEC) related to parallel
investigations that the DOJ and SEC conducted regarding possible violations of
U.S. law, including the Foreign Corrupt Practices Act (FCPA), by the Company.
Parker Drilling has recorded a charge of $15.85 million, or $0.13 per diluted
share, for the fourth quarter of 2012, associated with the proposed settlement
of these matters. The charge, which is included in general and administrative
expense, is subject to change based on the results of any final settlement
with the DOJ and SEC relating to these matters.
"We are pleased with this progress, and we will continue to maintain a
vigorous FCPA compliance program, to emphasize the importance of compliance
and ethical business conduct, and to enhance our compliance efforts," said
Parker Drilling President and Chief Executive Officer, Gary Rich.
The agreement in principle is contingent upon the parties' preparation and
agreement on the language of the settlement documents, approval of the SEC's
civil settlement by its governing Commission and approval by a United States
District Court. There can be no assurance that this proposed settlement will
be finalized, or finalized on the terms currently agreed in principle, and we
cannot provide assurances regarding if and when the court and/or the SEC's
governing Commission will approve the settlement.
2012 Fourth Quarter Outlook
The Company also announced its expectations for its 2012 fourth quarter
operating performance and earnings results. Recent trends in the U.S. land
and Gulf of Mexico inland waters drilling markets have led to increased
competitive conditions for rental tools and slowness in demand for barge
drilling rigs. International operations have been impacted by a further
reduction in rig utilization. In addition, the fourth quarter's results
include costs and other expenses related to actions taken to improve operating
performance and position the Company for long-term success. This includes
costs associated with dry-docking some barge drilling rigs, repositioning and
redeploying some international drilling rigs and responding to the competitive
demands in the rentals tools market. Excluding the impact of the settlement
with the DOJ and SEC, the Company expects to report a net loss for the 2012
fourth quarter of between $0.03 and $0.05 per diluted share.
"Each of our operations has responded to market conditions in ways that are
already beginning to have a favorable impact on their performance.
Nevertheless, market conditions of the fourth quarter have had their effect on
our immediate results," noted Gary Rich.
The Company will discuss the results of the 2012 fourth quarter in more detail
following its upcoming earnings release and related conference call.
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