Pride International Reports 3rd Quarter Results
Pride International, Inc. reported net earnings for the third quarter of 2001 of $5,443,000, or $.04 per share, on revenues of $406,298,000. Results for the quarter include a charge for pooling and merger-related costs of $35,766,000, before estimated income taxes, and an extraordinary gain of $564,000, related to the early extinguishment of approximately $20,692,000 accreted value of the Company's Zero Coupon Convertible Subordinated Debentures. Excluding the merger-related charges and extraordinary item, net earnings were $34,728,000, or $.25 per share. For the same period in 2000, Pride reported net earnings of $16,727,000, or $.13 per share, on revenues of $304,317,000.
For the nine month period ended September 30, 2001, net earnings were $88,076,000, or $.63 per share, on revenues of $1,150,351,000. Excluding the merger-related charges and extraordinary item, net earnings were $117,361,000, or $.83 per share. For the corresponding nine month period in 2000, Pride reported net earnings of $20,494,000, or $.16 per share, on revenues of $810,906,000.
Pride was formed through the merger of Pride International, Inc. and Marine Drilling Companies, Inc. in September 2001. The merger was accounted for as a "pooling of interests". Accordingly, results for each of the periods discussed above are presented on a consolidated basis, as if the merger had been completed on the first day of each period.
Third quarter revenues were the highest in the Company's history, as international offshore operations benefited from the start-up in late June and late July of the Pride Carlos Walter and the Pride Brazil, two newly-built deepwater semisubmersibles, as well as contributions from two additional semisubmersibles acquired during the first quarter of 2001. International land operations benefited from increased activity levels and day rates in the Company's primary South American markets. In the Gulf of Mexico, weakening natural gas commodity prices and robust inventories resulted in a reduction in exploration and development drilling. Average utilization of the Company's Gulf of Mexico jackup fleet during the third quarter of 2001 decreased to 80% from 95% during the third quarter of 2000, and from 98% during the second quarter of 2001. Average day rates during the quarter increased to $42,000 from $30,600 during the prior year quarter, but were down from $44,400 during the second quarter of 2001.