Pride Breaks Even for the First Quarter
Pride International, Inc. reported net earnings for the first quarter of 2002 of $109,000 or $.00 per share, on revenues of $282,876,000. Results for the quarter include a net extraordinary loss of $454,000 related to the early extinguishment of approximately $142,224,000 accreted value of the Company's zero coupon convertible senior debentures. Excluding the extraordinary item, net earnings were $563,000, or $.00 per share. For the same period in 2001, Pride reported net earnings of $35,921,000 or $.26 per share, on revenues of $355,228,000.
Revenues and earnings for the first quarter of 2002 reflected the general weakness in drilling activity and the corresponding deterioration in day rates. The Company has experienced particularly weak conditions in the Gulf of Mexico jackup market as high natural gas inventory storage levels have resulted in reduced demand for rig services. Average utilization of the Company's Gulf of Mexico jackup fleet during the first quarter of 2002 decreased to 34% from 99% during the first quarter of 2001, and from 43% during the fourth quarter of 2001. Average day rates during the first quarter of 2001 decreased to $26,100 from $39,500 during the prior year first quarter and $28,600 during the fourth quarter of 2001. Additionally, results for the Company's international land operations declined from the fourth quarter 2001 to the first quarter 2002, driven by reduced activity, particularly in Argentina and Venezuela.
Pride's international offshore operations benefited from the start-up in June and July 2001 of the Pride Carlos Walter and the Pride Brazil, two newly-built deepwater semisubmersibles, and the commencement of new, higher day rate contracts for two additional semisubmersibles. During the first quarter of 2002, the Company experienced essentially full utilization of its seven high-specification deepwater rigs.
In September 2001, Pride completed its acquisition of Marine Drilling Companies, Inc. in a merger that 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.