Seahawk Drilling reported a loss from continuing operations of $8.8 million in the three months ended June 30, 2009 for the Gulf of Mexico business of Pride International, Inc. ("the Pride GOM business"). These results compared to earnings from continuing operations for the Pride GOM business of $46.0 million in the three months ended June 30, 2008. The Pride GOM business contains certain assets and operations that are not held by Seahawk, which in the three months ended June 30, 2009 included the operations related to two independent leg jackup rigs.
For the six months ended June 30, 2009, the Pride GOM business earned $4.2 million from continuing operations. These results compared to earnings of $93.3 million for the six months ended June 30, 2008.
Seahawk reported a pro forma loss from continuing operations of $9.4 million for the six month period ended June 30, 2009. This compared to Seahawk pro forma earnings from continuing operations for the first half of 2008 of $66.8 million.
Seahawk's pro forma combined balance sheet at June 30, 2009 included cash and cash equivalents of $65.3 million, after a $47.3 million cash contribution by Pride. As of June 30, 2009, Seahawk had pro forma total assets of $676.9 million, stockholders' equity of $499.1 million and no debt outstanding.
Seahawk anticipates that the cash and cash equivalents balance on September 30, 2009 will be in the range of $50-60 million. Furthermore, based on current expectations for activity in the fourth quarter of 2009, which includes three rigs working in the U.S. and three rigs working in Mexico, Seahawk would anticipate that the cash and cash equivalents balance on December 31, 2009 will be in the range of $45-55 million.
Randall D. Stilley, President and CEO of Seahawk, commented, "With natural gas prices at record lows, the Company faces a challenging market in the near term. However, in the midst of hurricane season and weak natural gas prices, we have seen a modest improvement in inquiries and bidding in the U.S. recently, as some of our customers are taking advantage of lower well costs, and the general sentiment towards future gas prices has improved."
"Unfortunately, we believe that PEMEX's drilling activity in Mexico could decline further during the remainder of 2009, until it has funding available from its 2010 budget."
"We are pleased to have Kurt Hoffman join Seahawk as Senior Vice President and Chief Operating Officer. His experience in operations and marketing will be a welcome addition to our management team. We are committed to making Seahawk the most efficient driller in the Gulf of Mexico. We are confident that when the market for jackup rigs improves, Seahawk will emerge as a clear leader."
During the second quarter of 2009, the Pride GOM business generated $17.7 million in revenues in the U.S. This compared to revenues of $56.0 million in the second quarter of 2008. Second quarter 2009 average revenue per day decreased to $67,300 from $67,800 in the second quarter of 2008 and operating days decreased to 263 days, or 21% utilization, from 826 days, or 83% utilization, over the same period. The U.S. segment recorded an operating loss of $16.6 million in the second quarter of 2009 compared to $12.3 million of operating income for the second quarter of 2008.
In Mexico, the Pride GOM business generated $58.8 million of revenues in the second quarter of 2009. This compared to revenues of $116.0 million in the second quarter of 2008. Second quarter 2009 average revenue per day decreased to $102,300 from $107,600 in the second quarter of 2008 and operating days decreased from 823 days, or 90% utilization, to 372 days, or 68% utilization, over the same period. The Mexico segment recorded $5.1 million in operating income in the second quarter of 2009 compared with $58.6 million of operating income in the second quarter of 2008.
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