Pride International (PDE) 8-K Financial statements and exhibits

NEWS RELEASE
5847 San Felipe, Suite 3300• Houston, Texas 77057 • (713) 789-1400

FOR IMMEDIATE RELEASE	Contact:	Steven D. Oldham
		Louis A. Raspino
		(713) 789-1400

Pride International Reports First Quarter Results

     Houston, Texas, April 30, 2004- Pride International, Inc. (NYSE: PDE) reported a net loss for the first quarter of 2004 of $6,765,000, or $.05 per share, on revenues of $433,565,000. Excluding construction project losses, net earnings would have been $3,795,000, or $.03 per share.¹ For the same period in 2003, Pride reported net earnings of $3,980,000, or $.03 per share, on revenues of $395,421,000.

     Results for the Company’s drilling and E&P services operations were generally improved over the prior quarter and the first quarter of 2003. The Company’s Western Hemisphere division improved sequentially, as thePride South Atlanticsemisubmersible, located in Brazil, commenced operations under a new contract in January. The rig was idle during the fourth quarter of 2003. Results for Mexico operations increased due to a full quarter’s utilization of two jackups and a semisubmersible that commenced contracts with Petroleos Mexicanos S.A. during the previous quarter.

     In the U.S. Gulf of Mexico, results for the quarter were level with the fourth quarter of 2003.

     Segment profit for the Eastern Hemisphere was essentially unchanged from the fourth quarter of 2003 and the prior year quarter.

     Results from our Latin America Land and E&P Services divisions improved over the fourth quarter of 2003, primarily due to an increase in utilization and lower operating expenses. The operating land rig count in South America, currently 192 rigs, is the highest level in the Company’s history. We increased rig count in Argentina and Venezuela, activating five rigs collectively during the first quarter of 2004.

     As previously disclosed, the Company has encountered significant challenges in connection with the construction of four deepwater platform rigs on behalf of two customers. During the first quarter of 2004, the Company reported additional losses related to these construction projects of approximately $10.6 million, net of estimated taxes.

     The construction losses recorded in the first quarter are principally attributable to additional provisions for the costs of settling certain commercial disputes and, to a lesser extent,

¹ See Exhibit A.

higher commissioning costs and revised estimates for other cost items. The Company is continuing to evaluate the loss provisions at this time, and accordingly, the final amount of such provisions recorded in the first quarter could differ from the amounts included in these results. The three rigs still under construction are at an advanced stage of mechanical completion, with one rig scheduled to be completed and delivered from the shipyard in early May, and the other two rigs scheduled to be completed and delivered by mid-July 2004.

     The Company has reorganized its segment reporting to conform to its new operating management structure. The operating divisions are now Eastern Hemisphere, Western Hemisphere, U.S. Gulf of Mexico, Latin America Land, E&P Services and Technical Services. The reclassified results of previous reporting periods not listed in this release are available on Pride’s corporate web site at www.prideinternational.com.

     Pride will host a conference call at 9:00 a.m. central time on Friday, April 30, 2004, to further discuss earnings for the quarter, recent events and management’s operational outlook. Individuals who wish to participate in the conference call may do so by dialing (877) 915-2768 in the United States or (712) 257-0021, outside of the United States. The conference leader will be Paul Bragg, Chief Executive Officer of Pride, and the password is “Pride.” In addition, the conference call will be broadcast live, on a listen-only basis, over the Internet at http://www.firstcallevents.com/service/ajwz405677931gf12.html. A replay of the conference call, as well as an update of the contract status of the Company’s rig fleet, historical financial statements and segment information and supplemental operating statistics, will be available on Pride’s corporate web site.

     Pride International, Inc., headquartered in Houston, Texas, is one of the world’s largest drilling contractors. The Company provides onshore and offshore drilling and related services in more than 30 countries, operating a diverse fleet of 332 rigs, including two ultra-deepwater drillships, 11 semisubmersible rigs, 35 jackup rigs, and 29 tender-assisted, barge and platform rigs, as well as 254 land rigs.

     The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements, including statements relating to expected losses and delivery schedule for rigs under construction, are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the Company’s filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements.

PRIDE INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)

	Three Months Ended March 31,
	2004			20031
Revenues	$	433,565		$	395,421
Cost of sales and services, excluding depreciation and amortization		310,492			259,520
Depreciation and amortization		66,337			61,742
General and administrative, excluding depreciation and amortization		26,989			23,745
Earnings from operations		29,747			50,414
Other income (expense)
Interest expense		(30,587	)		(34,678	)
Interest income		307			254
Other expense, net		(1,306	)		(3,264	)
Total other expense, net		(31,586	)		(37,688	)
Earnings (loss) before income taxes and minority interest		(1,839	)		12,726
Income tax provision (benefit)		(1,011	)		3,485
Minority interest		5,937			5,261
Net earnings (loss)	$	(6,765	)	$	3,980
Net earnings (loss) per share
Basic	$	(0.05	)	$	0.03
Diluted	$	(0.05	)	$	0.03
Weighted average shares outstanding
Basic		135,542			134,131
Diluted		135,542			134,840

¹ The three months ended March 31, 2003 have been restated to reflect the retroactive adoption of FIN 46R, Consolidation of Variable Interest Entities.

PRIDE INTERNATIONAL, INC.
RESULTS BY OPERATING SEGMENT
(in thousands)
(Unaudited)

	Three Months Ended
	March 31,
	2004			20031
Revenues
Eastern Hemisphere	$	142,971		$	142,150
Western Hemisphere		109,161			85,252
U.S. Gulf of Mexico		27,020			18,242
Latin America Land		88,960			73,099
E&P Services		34,224			24,637
Technical Services		31,229			52,041
Total	$	433,565		$	395,421
Costs of Sales and Services
Eastern Hemisphere	$	75,487		$	72,599
Western Hemisphere		66,490			42,806
U.S. Gulf of Mexico		23,370			22,895
Latin America Land		67,720			50,724
E&P Services		25,065			18,091
Technical Services		52,360			52,405
Total	$	310,492		$	259,520
Segment Profit (Loss)
Eastern Hemisphere	$	67,484		$	69,551
Western Hemisphere		42,671			42,446
U.S. Gulf of Mexico		3,650			(4,653	)
Latin America Land		21,240			22,375
E&P Services		9,159			6,546
Technical Services		(21,131	)		(364	)
Total	$	123,073		$	135,901
Days Worked
Eastern Hemisphere		2,184			2,160
Western Hemisphere		2,268			1,851
U.S. Gulf of Mexico		1,062			747
Latin America Land		15,566			14,724
Utilization
Eastern Hemisphere		77	%		66	%
Western Hemisphere		86	%		71	%
U.S. Gulf of Mexico		38	%		27	%
Latin America Land		74	%		82	%

¹ The three months ended March 31, 2003 have been restated to reflect the retroactive adoption of FIN 46R, Consolidation of Variable Interest Entities.

PRIDE INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
(Unaudited)

	March 31,		December 31,
	2004		2003
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	40,912	$	69,134
Restricted cash		42,888		38,840
Trade receivables, net		362,899		371,510
Parts and supplies, net		76,154		73,763
Deferred income taxes		3,380		3,371
Other current assets		173,876		170,306
Total current assets		700,109		726,924
PROPERTY AND EQUIPMENT, net		3,408,199		3,446,331
OTHER ASSETS
Investments in and advances to affiliates		35,771		33,984
Goodwill, net		68,651		69,014
Other assets, net		96,087		102,177
Total other assets		200,509		205,175
	$	4,308,817	$	4,378,430
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	147,774	$	163,707
Accrued expenses		268,078		261,055
Short-term borrowings		58,411		27,555
Current portion of long-term debt		190,088		188,737
Current portion of long-term lease obligations		5,319		2,749
Total current liabilities		669,670		643,803
OTHER LONG-TERM LIABILITIES		48,365		54,423
LONG-TERM DEBT, net of current portion		1,731,681		1,805,099
LONG-TERM LEASE OBLIGATIONS, net of current portion		6,743		9,979
DEFERRED INCOME TAXES		44,891		59,378
MINORITY INTEREST		108,906		102,969
STOCKHOLDERS’ EQUITY		1,698,561		1,702,779
	$	4,308,817	$	4,378,430

EXHIBIT A

PRIDE INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
ADJUSTED TO EXCLUDE RIG CONSTRUCTION PROJECTS
FOR THE THREE MONTHS ENDED MARCH 31, 2004
(in thousands, except share, per share and % amounts)
(Unaudited)

				Less
	As			Construction			As
	Reported			Projects			Adjusted
Revenues
Services	$	403,675		$	—		$	403,675
Sales		29,890			(29,890	)		—
Total		433,565			(29,890	)		403,675
Costs of sales and services, excluding depreciation and amortization
Services		259,299			—			259,299
Sales		51,193			51,193			—
Total		310,492			(51,193	)		259,299
Depreciation and amortization		66,337			—			66,337
General and administrative, excluding depreciation and amortization		26,989			—			26,989
Earnings from operations		29,747			21,303			51,050
Other income (expense)
Interest expense		(30,587	)		—			(30,587	)
Interest income		307			—			307
Other expense, net		(1,306	)		—			(1,306	)
Total other expense, net		(31,586	)		—			(31,586	)
Earnings (loss) before income taxes and minority interest		(1,839	)		21,303			19,464
Income tax provision (benefit)		(1,011	)		10,743			9,732
Minority interest		5,937			—			5,937
Net earnings (loss)	$	(6,765	)	$	10,560		$	3,795
Net earnings (loss) per share
Basic	$	(0.05	)	$	0.08		$	0.03
Diluted	$	(0.05	)	$	0.08		$	0.03
Weighted average shares outstanding
Basic		135,542			135,542			135,542
Diluted		135,542			138,129			138,129