"Friede Goldman Halter Announces Fourth Quarter Results"
Kodiak_bull: Congratulations on your short term trade. FWIW, I came very close to shorting FGH again this afternoon, but canceled the trade at the very last minute. Since I'm usually too early, I'll give myself a few more days to act.
My current sentiment on FGH? While J.L. may have won the short-term battle with Ocean Rig, he's probably lost the long-term war over FGH's credibility in the industry which comprises his future revenue base.
Just my two cents.
Razor
Friede Goldman Halter Announces Fourth Quarter Results
Monday March 12, 9:37 am Eastern Time
Press Release
GULFPORT Miss.--(BUSINESS WIRE)--March 12, 2001--Friede Goldman Halter, Inc. (NYSE:FGH - news) today released the Company's financial results for its fourth quarter and year ended December 31, 2000.
On February 22, 2001 the Company announced that delays and cost overruns on the Bingo 9000-1 and 9000-2 drilling rigs under construction for Ocean Rig ASA were expected to have a significant negative impact on FGH's fourth quarter results of operations. As a result of the additional losses on the Ocean Rig contracts, lower than expected revenues and other factors, the Company will report a net loss for the fourth quarter, before extraordinary item, of $71.9 million, or $1.48 per share. No federal income tax benefits were available to offset the losses recorded in the fourth quarter. The Company will also report an extraordinary loss of $3.8 million or $.08 per share resulting from the write off of deferred loan costs in the fourth quarter. For the year ended December 31, 2000, the Company will report a loss before extraordinary item of $102.5 million or $2.30 per share.
The fourth quarter results include losses of approximately $44 million on the Bingo 9000-1 and 9000-2 rigs, including a provision for all losses incurred on the project through March 09, 2001. Today, the Company announced in a separate press release that it had signed an agreement with Ocean Rig ASA that will settle previously announced disputes and allow work on the rigs to resume. As a result of the settlement agreement, FGH will be paid on a time and materials basis for all work to be performed by FGH in completing the project.
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[Note: IMO, the wording of this last sentence is very important. It does NOT state that any of the previously incurred losses will be made whole.]
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The Company plans to schedule a conference call to discuss results and the current status of the Company after the filing of the Company's Form 10-K. The time and date of the call will be announced later this week.
Friede Goldman Halter is a world leader in the design and manufacture of equipment for the maritime and offshore energy industries. Its operating units are Friede Goldman Offshore (construction, upgrade and repair of drilling units, mobile production units and offshore construction equipment); Halter Marine (construction of vessels for commercial and governmental markets); FGH Engineered Products (design and manufacture of cranes, winches, mooring systems and other types of marine equipment); and Friede & Goldman Ltd. (naval architecture and marine engineering).
Note: This press release includes certain statements that may be deemed to be ``forward-looking statements'' within the meaning of Section 27A of The Securities Act of 1933, as amended, and Section 21 E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Friede Goldman Halter expects, believes or anticipates will or may occur in the future, are forward-looking statements. These statements are based on certain assumptions and analyses made by Friede Goldman International Inc. in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Friede Goldman Halter and which are discussed in Friede Goldman Halter's Registration Statement on Form S-1 and the 1999 Annual Report on Form 10-K. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.
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Contact:
Friede Goldman Halter Inc., Gulfport
Chris Cunningham, 228/897-4987
fgh.com
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