Pride International Reports 3rd Quarter Earnings
|Friday, October 31, 2003
Pride International reported net earnings for the third quarter of 2003 of $28,494,000, or $.19 per share, on revenues of $450,834,000. For the same period in 2002, Pride reported a net loss of $5,723,000, or $.04 per share, on revenues of $312,750,000.
For the nine-month period ended September 30, 2003, net earnings were $13,831,000, or $.10 per share, on revenues of $1,254,870,000. For the corresponding nine-month period in 2002, Pride reported a net loss of $9,927,000, or $.07 per share, on revenues of $920,791,000.
Results for the third quarter of 2003 include the following non-recurring items: (1) a net gain of $18,695,000, or $.12 per share, net of estimated taxes, from amortization of a deferred gain relating to the contractual upgrade of a land rig deployed to Kazakhstan; (2) a charge of $3,992,000, or $.03 per share, net of estimated taxes, representing the call premium on the early extinguishment of $150 million principal amount of Pride's 9-3/8% Senior Notes due 2007; and (3) net losses of $2,938,000, or $.02 per share, net of estimated taxes, from the Company's technical services segment, as a result of additional estimated losses on the construction of deepwater platform rigs on behalf of two customers. Results for the nine-month period ended September 30, 2003 include the foregoing amounts as well as a provision for additional net losses of $28,261,000, or $.21 per share, net of estimated taxes, recognized in the second quarter of 2003, relating to the deepwater platform rig construction projects.
In the Gulf of Mexico, operating results for the third quarter of 2003 improved substantially over the prior year period, due primarily to the deployment to Mexico and startup of nine jackup rigs, one platform rig and one semisubmersible rig subsequent to the second quarter of 2002, as well as higher dayrates among our jackup rigs operating in the U.S. Gulf of Mexico and increased utilization and higher dayrates enjoyed by the Company's platform rig fleet since May 2003. Results for the quarter improved sequentially over the second quarter of 2003, due primarily to contributions from three jackups and one platform rig that commenced operations in Mexico during the third quarter of 2003, and increased utilization and higher dayrates for the Company's platform rig fleet. Average utilization of Pride's Gulf of Mexico jackup fleet during the third quarter of 2003 increased to 72% from 47% during the third quarter of 2002 and from 62% during the second quarter of 2003. Average daily revenues per rig during the third quarter of 2003 increased to $31,295, from $25,209 during the prior year third quarter and $30,821 during the second quarter of 2003.
Results from international offshore operations also increased from the third quarter of 2002 and the second quarter of 2003. Results for the third quarter of 2003 benefited from the return to a full quarter's operation of the jackup rig Pride Cabinda and the tender-assisted rig Piranha following completion of special periodic surveys, as well as essentially full utilization for the jackup rig Pride Montana following downtime for maintenance and repairs performed during the previous quarter, and the impact of a new higher dayrate contract for the jackup rig Pride Pennsylvania. The improvement in results was partially offset by unexpected downtime for two other semisubmersibles, due to unscheduled repairs.
The Company's international land operations and E&P Services segments also experienced improved results, due primarily to markedly higher activity levels in Venezuela and Argentina, and the operation of two large land rigs in Kazakhstan, one of which commenced operations during the fourth quarter of 2002 and the other in the third quarter of 2003. In Kazakhstan, Pride operates the two land rigs under contracts that required substantial engineering, logistics and construction work to modify, enhance and deploy the rigs in accordance with the customer's specifications. The company received up-front fees that are being recognized over the period of drilling. Approximately $23.9 million of such fees were recognized during the third quarter of 2003.