Monday June 22, 5:51 pm Eastern Time
TransCoastal Q2 exceeding expectations
HOUSTON, June 22 (Reuters) - TransCoastal Marine Services Inc. said Monday it has estimated second quarter
earnings will meet or slightly exceed analysts' estimates of $0.29 per share.
At the same time, the company said the continuing slump in oil prices is reducing pipeline contracting activity, which could
affect results for the remainder of the year.
Based on current market conditions, TransCoastal estimates that net income could range from 35 to 40 percent below the
current consensus estimate of $1 per share for the full year 1998, the company said in a statement.
''Although three major pipeline projects are contributing to our strong second quarter, two of those jobs are to be
completed by the end of July, and we anticipate that available bidding for additional transition zone trunklines in the Gulf
of Mexico will be significantly reduced for the rest of the year,'' said Chief Executive Officer Bill Stallworth.
''While fabrication work remains strong, and there still is a reasonable level of bid activity for pipeline and offshore work,
most of those bids are for smaller projects that typically have lower profit margins.''
TransCoastal said it anticipates first half net income for the first half will be 55 to 65 percent above the proforma
combined unaudited results reported for the comparable period in 1997.
''Good productivity, reduced costs on certain construction projects and favorable weather conditions all are contributing
positively to our performance,'' said Stallworth.
TransCoastal also said it expects to reach an agreement for its recently acquired pipelay barge, the ''Vermilion Bay,'' to
go to Mexico, where it will begin work for a major Mexican contractor under a contract for 200 days, plus options for
additional time.
''We're pleased to put the ''Vermilion Bay'' on a job that will generate roughly $4 million in cash flow during the initial
contract period that includes the upcoming winter months, which typically are a slow season in our business,'' said
Stallworth. |
