Pride International (PDE) 8-K Pride International Reports Fourth Quarter Results

Exhibit 99.1

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

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

Pride International Reports Fourth Quarter Results

     Houston, Texas, February 27, 2004- Pride International, Inc. (NYSE: PDE) reported a net loss for the fourth quarter 2003 of $38,452,000 ($.28 per share) on revenues of $434,850,000. For the same period in 2002, Pride reported net earnings of $1,143,000 ($.01 per share) on revenues of $348,983,000.

     For the year ended December 31, 2003, Pride reported a net loss of $23,933,000 ($.18 per share) on revenues of $1,689,720,000. For the year ended December 31, 2002, the Company reported a net loss of $8,335,000 ($.06 per share) on revenues of $1,269,774,000.

     As previously disclosed, the Company has encountered significant challenges in connection with the construction of four deepwater platform rigs on behalf of two customers in 2003. During the fourth quarter of 2003, the Company reported additional losses related to these construction projects of approximately $34 million, net of estimated taxes. For the year, the Company’s Technical Services segment recognized approximately $64 million of losses, net of estimated taxes, in connection with these projects. The additional losses in the fourth quarter are principally attributable to: (1) financial relief to a shipyard that encountered significant financial difficulties, in order for it to complete a reduced scope of work; (2) costs associated with completion of tasks by newly contracted parties to finish the scope of work excluded from the previously mentioned shipyard; as well as transportation and other costs necessitated by the revised project completion plan; (3) additional provisions for the estimated costs of settling a number of commercial disputes with shipyards, equipment vendors, EPC contractors and others; (4) additional provisions for commissioning, training and warranties based on experience from the start-up of the first of the four rigs (now completed and operating); and (5) revised estimates for certain cost items. The Company is continuing to evaluate certain loss provisions at this time, and accordingly, the final amount of such provisions recorded in the fourth quarter could differ from the amounts included in these results.

     Results for the fourth quarter of 2003 were also affected by certain other items, including: (1) charges relating to certain receivables and claims of $5,445,000, net of estimated taxes; and (2) cash and non-cash provisions relating to executive retirements of $3,474,000, net of estimated taxes. Results for the year ended December 31, 2003 include these amounts as well as the following items: (1) income of $18,695,000, net of estimated taxes, relating to the contractual upgrade of a land rig deployed to Kazakhstan, recognized in the third quarter of 2003; and (2) a charge of $3,992,000, net of estimated taxes, representing the call premium on the early

extinguishment of $150 million principal amount of Pride’s 9-3/8% Senior Notes due 2007 and related deferred financing costs, recognized in the third quarter of 2003.

     In the Gulf of Mexico, results for the quarter improved sequentially over the third quarter of 2003, due primarily to contributions from two jackups and one semisubmersible rig that commenced operations in Mexico during the fourth quarter of 2003, and marginally higher dayrates for the U.S. Gulf of Mexico jackups. This was offset by decreased utilization in the Company’s platform rig fleet and higher operating expenses associated with the shorebase in Mexico due to the ramp-up in activity in 2003. Average utilization of Pride’s Gulf of Mexico jackup fleet during the fourth quarter of 2003 increased to 78% from 58% during the fourth quarter of 2002 and from 72% during the third quarter of 2003. Average daily revenues per rig during the fourth quarter of 2003 increased to $32,725, up from $28,533 during the prior year’s quarter and $31,295 during the third quarter of 2003.

     Results from international offshore operations decreased sequentially. Significantly impacting the quarter, thePride South Atlanticcompleted its contract and was idle until late January 2004. Also, thePride Venezuelahad a full quarter of idle time following completion of its contract during the third quarter. In addition, the Company experienced downtime on several semisubmersibles and one tender-assisted rig due to unscheduled repair and maintenance work.

     The Company’s international land operations and E&P Services segments improved in the fourth quarter of 2003 over the same quarter of 2002 due to higher activity levels in Argentina and Venezuela and the operation of two large land rigs in Kazakhstan during the 2003 quarter. Results declined sequentially however, due primarily to temporarily reduced activity levels in the South American region late in the year and commencement of a reduced winter standby rate in Kazakhstan. The third quarter 2003 results also included income relating to the contractual upgrade of a land rig deployed to Kazakhstan, as mentioned previously.

     Pride will host a conference call at 9:00 a.m. central time on Friday, February 27, 2003, to further discuss the Company’s operations and results. Individuals who wish to participate in the conference call may do so by dialing (800) 857-9091 in the United States or (712) 271-0046, worldwide. The conference leader will be Paul Bragg 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/ajwz401374071gf12.html. A replay of the conference call, as well as an update of the contract status of the Company’s rig fleet, historical financial statement and segment information, and supplemental operating statistics will be available on Pride’s corporate web site at http://www.prideinternational.com.

     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 326 rigs, including two ultra-deepwater drillships, 11 semisubmersible rigs, 35 jackup rigs, 29 tender-assisted, barge and platform rigs, and 249 land rigs.

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

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2003			20021			2003			20021
Revenues	$	434,850		$	348,983		$	1,689,720		$	1,269,774
Operating costs		355,319			222,661			1,197,845			794,739
Depreciation and amortization		63,446			60,152			249,222			230,204
Selling, general and administrative		39,116			23,810			120,435			94,241
Earnings (loss) from operations		(23,031	)		42,360			122,218			150,590
Other income (expense)
Interest expense		(31,927	)		(35,954	)		(133,227	)		(140,863	)
Interest income		1,854			(1,932	)		3,182			2,084
Other income (expense), net		7,272			167			3,529			(1,072	)
Other expense, net		(22,801	)		(37,719	)		(126,516	)		(139,851	)
Earnings (loss) before income taxes & minority interest		(45,832	)		4,641			(4,298	)		10,739
Income tax provision (benefit)		(12,703	)		1,345			(1,130	)		2,977
Minority interest		5,323			2,153			20,765			16,097
Net earnings (loss)	$	(38,452	)	$	1,143		$	(23,933	)	$	(8,335	)
Net earnings (loss) per share
Basic	$	(0.28	)	$	0.01		$	(0.18	)	$	(0.06	)
Diluted	$	(0.28	)	$	0.01		$	(0.18	)	$	(0.06	)
Weighted average shares outstanding
Basic		135,291			134,041			134,704			133,305
Diluted		135,291			134,838			134,704			133,305

(1) The three and twelve months ended December 31, 2002 results 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						Twelve Months Ended
	December 31,						December 31,
	2003			20021			2003			20021
Revenues
Gulf of Mexico	$	81,067		$	53,964		$	271,490		$	165,419
International offshore		166,144			172,818			683,058			642,319
International land		115,347			82,584			482,832			299,278
E&P services		32,016			22,112			122,052			73,000
Technical services		40,276			17,505			130,288			89,758
Total revenues		434,850			348,983			1,689,720			1,269,774
Operating Costs
Gulf of Mexico		53,815			42,881			185,476			141,766
International offshore		92,896			86,592			347,398			310,071
International land		92,624			58,665			341,847			204,018
E&P services		23,964			16,074			88,318			52,176
Technical services		92,020			18,449			234,806			86,708
Total operating costs		355,319			222,661			1,197,845			794,739
Segment Profit (Loss)
Gulf of Mexico		27,252			11,083			86,014			23,653
International offshore		73,248			86,226			335,660			332,248
International land		22,723			23,919			140,985			95,260
E&P services		8,052			6,038			33,734			20,824
Technical services		(51,744	)		(944	)		(104,518	)		3,050
Total segment profit (loss)	$	79,531		$	126,322		$	491,875		$	475,035
Days Worked
Gulf of Mexico		2,740			1,980			9,222			6,757
International offshore		2,267			2,461			9,655			9,359
International land		15,068			13,477			62,390			45,676
Utilization
Gulf of Mexico		62	%		51	%		55	%		44	%
International offshore		82	%		89	%		87	%		89	%
International land		69	%		70	%		75	%		64	%

(1) The three and twelve months ended December 31, 2002 results have been restated to reflect the retroactive adoption of FIN 46R, Consolidation of Variable Interest Entities.

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

	December 31,		December 31,
	2003		20021
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	69,134	$	133,986
Restricted cash		38,840		52,700
Trade receivables, net		371,510		265,885
Parts and supplies		73,763		64,920
Deferred income taxes		3,371		3,332
Other current assets		170,306		176,912
Total current assets		726,924		697,735
PROPERTY AND EQUIPMENT, net		3,446,331		3,473,636
OTHER ASSETS
Investments in and advances to affiliates		33,984		29,620
Goodwill, net		69,014		72,014
Other assets, net		102,177		129,852
Total other assets		205,175		231,486
	$	4,378,430	$	4,402,857
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	163,707	$	186,657
Accrued expenses		260,098		226,696
Deferred income taxes		957		985
Short-term borrowings		27,555		17,724
Current portion of long-term debt		188,737		99,265
Current portion of long-term lease obligations		2,749		2,679
Total current liabilities		643,803		534,006
LONG-TERM DEBT, net of current portion		1,805,099		1,873,936
LONG-TERM LEASE OBLIGATIONS, net of current portion		9,979		12,511
DEFERRED INCOME TAXES		59,378		100,966
OTHER LONG-TERM LIABILITIES		54,423		99,937
MINORITY INTEREST		102,969		82,204
SHAREHOLDERS’ EQUITY		1,702,779		1,699,297
	$	4,378,430	$	4,402,857

(1) The December 31, 2002 balance sheet has been restated to reflect the retroactive adoption of FIN 46R and certain reclassifications have been made to conform with current year presentation.