Wednesday May 5, 10:01 am Eastern Time
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Company Press Release
SOURCE: Pride International, Inc.
Pride International Reports Quarterly Results
HOUSTON, May 5 /PRNewswire/ -- Pride International, Inc. (NYSE: PDE - news) reported a net loss for the first quarter of 1999 of $39,457,000 or $.78 per share, on revenues of $153,819,000. Results for the quarter include charges totaling $28,859,000, net of estimated income taxes, related to substantial work force reductions resulting primarily from decreased activity levels. Excluding such non-recurring charges, the net loss was $10,598,000, or $.21 per share. For the same period in 1998, Pride reported net earnings of $21,434,000, or $.40 per share, on revenues of $213,686,000.
The decline in both revenues and earnings was primarily a result of a decline in global drilling and workover activity and a corresponding decline in pricing. The Company experienced continued weakness in the shallow-water, mat-supported jackup market in the Gulf of Mexico and depressed land drilling and workover activity levels in South America, particularly Venezuela. In the Gulf of Mexico, the Company operated only 6 of its 11 jackup rigs. In Venezuela, activity levels have been negatively impacted by reductions in private sector exploration and production capital spending, especially in the marginal heavy-oil areas.
To address the dramatic decline in activity, the Company has undertaken significant restructuring over the past five months, with cost reduction measures aimed at reducing operating costs through regional base consolidations, down-sizing administrative staffs and other reductions in personnel throughout the Company. Cumulatively, these measures have resulted in more than 4,000 personnel reductions or 38% from the peak in 1998. The Company expects that these cost reductions will result in annual cost savings in excess of $25 million.
Paul A. Bragg, President and CEO, commented, ''We have focused our efforts on reducing our staffing to appropriate levels given current industry conditions. These efforts were extensive but will position us to return to profitability. While we are encouraged by the recent improvements in oil and gas commodity prices, the timing of a recovery in drilling activity remains uncertain.''
Pride International, Inc. headquartered in Houston, Texas, is one of the world's largest drilling contractors. The Company provides onshore and offshore drilling, workover and related services in more than 20 countries, operating a diverse fleet of 313 rigs, including three semisubmersible rigs, 17 jackup rigs, nine tender-assisted rigs, four barge rigs, 23 offshore platform rigs and 251 land rigs. |
