HOFF reports:
Tuesday January 30, 7:01 am Eastern Time
Press Release
SOURCE: Horizon Offshore, Inc.
Horizon Offshore Reports 2000 Earnings
HOUSTON, Jan. 30 /PRNewswire/ -- Horizon Offshore, Inc. (Nasdaq: HOFF - news) today reported net income for 2000 of $6.4 million, or $.33 per share, which includes a $1.4 million, or $0.07 per share, cumulative effect of an accounting change reducing depreciation expense. This compares with net income of $1.7 million, or $.09 per share for 1999.
For the three months ended December 31, 2000, Horizon reported net income of $1.4 million, or $.07 per share, on revenues of $51.8 million, compared with a net loss of $2.8 million, or $.15 per share, on revenues of $16.9 million for the fourth quarter 1999.
For the fiscal year 2000, gross profit was $24.4 million, or 15.2 percent, on contract revenues of $160.5 million, compared with gross profit of $16.8 million, or 18.9 percent, on contract revenues of $89.0 million for 1999. Pre-tax net income was $7.9 million and income tax expense was $2.9 million for 2000, compared with pre-tax net income of $2.7 million and income tax expense of $1.0 million for 1999.
``Given the competitive market environment, we are pleased with our performance in 2000 and continue to look forward to a more active 2001 environment,'' said Bill J. Lam, president and chief executive officer. ``Our international expansion and the completion of several vessel upgrades opened new opportunities for Horizon's continued growth, as evidenced by the significant increase in revenues.''
``During the last half of 2000, we began work on two major projects for an affiliate of Petroleos Mexicanos (Pemex), the Mexican national oil company. Together, these projects involve the installation, bury, hook-up and commissioning of 13 pipelines in the Cantarell Field requiring the utilization of four Horizon vessels. We are proud of the outstanding performance of our equipment and personnel working in Mexico,'' said Lam. ``We believe these projects further strengthen our position as an emerging leader in the U.S. and Latin American markets.''
Strategic vessel upgrades during the year enabled the company to focus on larger, more profitable projects. The upgrade of the Pacific Horizon to a lift capacity of 1,000 tons allowed Horizon to install a platform facility off the coast of Ecuador in 2000. The company also increased the tension capacity of the Lonestar Horizon, the Brazos Horizon and the Gulf Horizon. These improvements enabled the vessels to lay 20`` to 36'' pipelines in connection with other large projects, such as the Spinnaker Pipeline and the Hickory Pipeline Lateral Project. During 2000, Horizon also increased the burial capacity of the Canyon Horizon.
Horizon's aggressive health, safety and environmental program (HSE) continued to be a top priority this year. The total recordable incident rate decreased 31 percent, while man-hours increased 33 percent for the year 2000 compared with 1999. In 2000, Horizon achieved its lowest total recordable incident rate. The commitment of Horizon and its employees to the execution of its HSE program have made 2000 the fourth consecutive year that the recordable incident rate has declined.
Bill J. Lam added, ``Our backlog of projects at the end of December 2000 was approximately $50.0 million, compared with $10.0 million at the end of 1999. With the outlook for near-term natural gas prices, capital spending by major oil and gas companies and independents in the Gulf is slated to rise in 2001. Other key industry indicators, such as drilling permits, jack-up drilling utilization, and development and construction plans also remain strong. Many development projects for natural gas are performed in the shallow waters on the outer continental shelf in the Gulf of Mexico. We believe that Horizon, as a major competitor in this market, has the resources, both employees and equipment, to capitalize on this trend.''
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