For the six-month period ended June 30, 2004, Pride reported a net loss of $4,243,000, after tax, or $.03 per share, on revenues of $879,923,000. Excluding construction project losses totaling $15,830,000, net earnings would have been $11,587,000 or $.09 per diluted share. For the corresponding six-month period in 2003, the net loss was $14,193,000, or $.11 per share, on revenues of $804,036,000.
Results for the Company's operations for the second quarter of 2004 were generally improved sequentially and year-over-year. The Company's Western Hemisphere segment improved year-over-year due to an increase in the number of rigs deployed offshore Mexico, and improved sequentially due to cost reduction measures implemented and operating efficiencies realized during the period. Results also benefited from a full quarter's contribution from the Pride South Atlantic semisubmersible, located in Brazil, which commenced operations under a new contract in January.
In the U.S. Gulf of Mexico, results for the second quarter were significantly improved sequentially and year-over-year due to improving dayrates and utilization of the jackup and platform fleets, reflecting stronger market conditions.
Segment profit for the Eastern Hemisphere was essentially unchanged sequentially and year-over-year.
Results from the Company's Latin America Land segment improved sequentially. Drilling and workover rig utilization increased in Argentina and Venezuela during the first quarter 2004 and remained strong throughout the second quarter, resulting in improved segment profits.
As previously disclosed, the Company had recorded pretax loss provisions in connection with the construction of four deepwater platform rigs on behalf of two customers totaling approximately $98.4 million in 2003, and $21.3 million in the first quarter of 2004. During the second quarter of 2004, the Company recorded additional pretax losses relating to these construction projects of approximately $10.5 million.
The additional construction losses recorded in the second quarter are attributable to revisions of previous estimates due principally to completion issues at the shipyards constructing the final two rigs and renegotiations of commercial terms with shipyards, equipment vendors and other subcontractors. Three of the rigs have been completed and installed on the customers' platforms. The final rig has been loaded on a heavy-lift vessel for shipment to the customer's platform construction site for integration into the unit. The Company will continue commissioning of the rig at that location through the middle of the fourth quarter.
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