Anyone in CXIPY ? My buy limit was hit on the opening today. Sure isn't moving with the group. It must be down in reaction to this news from after the close yesterday. Looks like the Petrobras dispute could have major effect on 1998 4Q. CXIPY says 1998 will be at least 10% more than 1997 but current estimate is +29% year over year.
biz.yahoo.com
John
Tuesday March 2, 5:30 pm Eastern Time
Company Press Release
SOURCE: Coflexip Stena Offshore Inc.
Coflexip Stena Offshore Announces Its 1998
Results Should Take Into Account Uncertainty
of the Brazilian Situation
PARIS, March 2 /PRNewswire/ -- The Group Coflexip Stena Offshore (Nasdaq: CXIPY; RM: CFI FP) announced
that it recently entered into negotiations with Petrobras regarding certain commercial disputes related to the
financial crisis affecting Brazil, and which concern, notably, the application of dollar indexation clauses in local
supply contracts.
The Management of Coflexip Stena Offshore should take into account in its 1998 Group results, the effects of the
position taken by Petrobras to date, which would translate, on the basis of current information the Group has to
date, into a negative effect of approximately 22 million Euros, ((1)USD 26 million) on operating income for the
fourth quarter 1998 and roughly 15 million Euros ((1)USD17 million) on net income for the same period.
Nonetheless, in undertaking these negotiations, the Group Coflexip Stena Offshore seeks to reinstate the normal
application of contracts.
The Group Coflexip Stena Offshore wishes to recall that it had also previously announced a negative,
non-recurring impact of 21 million Euros ((1)USD25 million) on its operating and net income for 1998, due to the
closing of its Australian plant (of which 11 million Euros ((1)USD13 million) were recorded during the second
quarter of 1998 and 10 million Euros ((1)USD 12 million) to be recorded during the fourth quarter 1998).
After taking into account the above mentioned elements, and on the basis of preliminary information not yet
audited, the Group Coflexip Stena Offshore expects that its net income for 1998 should be at least 10 % above 1997
results.
World leader in the subsea oilfield service industry, Coflexip Stena Offshore provides a wide range of services
(project management, engineering design, procurement, subsea pipeline and umbilical laying, construction and
maintenance work) and products (design and manufacture of flexible pipes, control umbilicals and remotely
operated vehicles).
(1) US dollar amounts are provided for reader convenience only at the rate of USD 1 = Euro 0,852.
Listed in New York (Nasdaq) and in Paris (Premier Marche), the Coflexip Stena Offshore Group, headquartered in
Paris, employs approximately 4,000 employees spread over five continents, with subsidiaries in Australia, Brazil,
Canada, France, India, Norway, Singapore, the United Kingdom and the United States.
Forward looking statements and assumptions in this report and press release that are not statements of historical
fact involve risks and assumptions that could cause actual results to vary materially from those predicted. These
include, among other things, general economic conditions in the company's markets and particularly Brazil's
monetary situation, the price of crude oil and natural gas, and the level of capital expenditures of our customers.
The Company strongly encourages readers to note that some or all of the assumptions upon which such forward
looking statements are based are beyond the Company's ability to control or estimate precisely and may in some
cases be subject to rapid and material change.
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