EXHIBIT 99.2
[PRIDE INTERNATIONAL LOGO]
NEWS RELEASE
5847 SAN FELIPE, SUITE 3300 - HOUSTON, TEXAS 77057 - (713) 789-1400
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE Contact: Earl W. McNiel
Nicolas J. Evanoff
(713) 789-1400
PRIDE INTERNATIONAL REPORTS SECOND QUARTER RESULTS
HOUSTON, TEXAS, AUGUST 14, 2003 - Pride International, Inc. (NYSE: PDE)
reported a net loss for the second quarter of 2003 of $18,411,000, or $.14 per
share, on revenues of $408,615,000. Results for the quarter include a loss
provision of $30,485,000, or $.23 per share, net of estimated taxes, related to
construction of deepwater platform rigs on behalf of two customers. For the same
period in 2002, Pride reported a net loss of $4,313,000, or $.03 per share, on
revenues of $309,484,000.
For the six-month period ended June 30, 2003 the net loss was
$14,663,000, or $.11 per share, on revenues of $804,036,000. Results for the
period include net losses of $28,261,000, or $.21 per share, net of estimated
taxes, related to construction of deepwater platform rigs on behalf of two
customers. For the corresponding six-month period in 2002, the net loss was
$4,204,000, or $.03 per share, on revenues of $608,041,000.
Performance in our contract drilling and E&P services businesses for
the second quarter of 2003 improved considerably over the prior year period and
sequentially over the first quarter of 2003. In the Gulf of Mexico, results were
positively impacted by the deployment to Mexico and startup of nine jackup rigs
and one semisubmersible subsequent to the first quarter of 2002 and to higher
dayrates among our jackups operating in the U.S. Gulf of Mexico. Average
utilization of the Company's Gulf of Mexico jackup fleet during the second
quarter of 2003 increased to 62% from 41% during the second quarter of 2002.
Utilization was also 62% during the first quarter of 2003. Average daily
revenues per rig during the second quarter of 2003 increased to $30,800 from
$24,700 during the prior year second quarter and from $30,500 during the first
quarter of 2003.
Results from international offshore operations also increased from the
second quarter of 2002 and the first quarter of 2003, reflecting the continued
high utilization of the Company's floating rigs and international jackups. The
return to a full quarter's operation of two semisubmersibles, the Pride South
America and Pride South Atlantic, following scheduled periodic surveys completed
during the first quarter contributed to improved results, as did the
commencement of a higher dayrate contract for the jackup rig Pride Pennsylvania
in May 2003. Results were negatively affected by scheduled periodic surveys on
the jackup rig Pride Cabinda and the tender-assisted rig Piranha during the
quarter.
Results for the Company's international land operations and E&P
Services segment improved considerably from the second quarter of 2002 and first
quarter of 2003, due primarily to accelerating activity levels in Venezuela and
Argentina and the commencement of operations of a 3,000-horsepower rig deployed
in Kazakhstan during the fourth quarter of 2002.
In Kazakhstan, we operate two large land rigs under contracts that
required substantial engineering, logistics and construction work to modify,
enhance and deploy the rigs in accordance with the customer's specifications. We
received up-front fees that are being recognized over the period of drilling.
The unamortized balance of these fees at June 30, 2003 was $26.4 million, net of
taxes, of which approximately $23.9 million is expected to be recognized in the
third quarter of 2003 and $2.5 million in the fourth quarter.
Pride will host a conference call at 10:00 a.m. central time on Friday,
August 15, 2003, 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) 917-1554 in the United States or
(773) 756-4816, outside of the United States. The conference leader will be Paul
Bragg, President and 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/ajwz387621282gf12.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 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 331 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 amounts expected to be recognized in
future periods from contracts in Kazakhstan, and any other statements that are
not historical facts, are subject to certain risks, uncertainties and
assumptions as identified herein or disclosed from time to time in the Company's
filings with the Securities and Exchange Commission. These factors include, but
are not limited to the timing and results of the ongoing comprehensive review of
our construction projects and risks associated with contractual pricing in the
offshore marine construction industry. As a result of these factors, actual
results may differ materially from those indicated or implied by such
forward-looking statements.
PRIDE INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------- ---------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Revenues $ 408,615 $ 309,484 $ 804,036 $ 608,041
Operating costs 309,530 195,565 572,227 382,963
--------- --------- --------- ---------
Gross margin 99,085 113,919 231,809 225,078
Depreciation and amortization 59,463 56,370 120,259 111,075
Selling, general and administrative 29,965 22,291 53,710 45,693
--------- --------- --------- ---------
Earnings from operations 9,657 35,258 57,840 68,310
--------- --------- --------- ---------
Other income (expense)
Interest expense (32,124) (33,245) (64,803) (64,380)
Interest income 819 1,679 1,073 3,023
Other, net 4,894 (2,182) 1,630 134
--------- --------- --------- ---------
Total other income (expense), net (26,411) (33,748) (62,100) (61,223)
--------- --------- --------- ---------
Earnings (loss) before income taxes and minority interest (16,754) 1,510 (4,260) 7,087
Income tax provision (benefit) (2,509) 1,128 976 2,078
Minority interest 4,166 4,695 9,427 9,213
--------- --------- --------- ---------
Net loss $ (18,411) $ (4,313) $ (14,663) $ (4,204)
========= ========= ========= =========
Net loss per share
Basic $ (0.14) $ (0.03) $ (0.11) $ (0.03)
Diluted $ (0.14) $ (0.03) $ (0.11) $ (0.03)
Weighted average shares outstanding
Basic 134,246 133,094 134,189 132,979
Diluted 134,246 133,094 134,189 132,979
PRIDE INTERNATIONAL, INC.
RESULTS BY OPERATING SEGMENT
(in thousands)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- ----------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Revenues
Gulf of Mexico $ 58,888 $ 38,245 $ 115,153 $ 70,845
International offshore 172,135 157,846 335,312 317,498
International land 119,043 68,662 218,793 141,982
E&P services 32,526 15,681 57,163 32,621
Technical services 26,023 29,050 77,615 45,095
--------- --------- --------- ---------
Total revenues 408,615 309,484 804,036 608,041
--------- --------- --------- ---------
Operating Costs
Gulf of Mexico 40,764 34,599 83,898 64,156
International offshore 87,568 77,544 168,521 157,752
International land 84,012 46,397 152,220 96,442
E&P services 23,627 10,980 41,718 22,887
Technical services 73,559 26,045 125,870 41,726
--------- --------- --------- ---------
Total operating costs 309,530 195,565 572,227 382,963
--------- --------- --------- ---------
Gross Margin
Gulf of Mexico 18,124 3,646 31,255 6,689
International offshore 84,567 80,302 166,791 159,746
International land 35,031 22,265 66,573 45,540
E&P services 8,899 4,701 15,445 9,734
Technical services (47,536) 3,005 (48,255) 3,369
--------- --------- --------- ---------
Total gross margin $ 99,085 $ 113,919 $ 231,809 $ 225,078
========= ========= ========= =========
Days Worked
Gulf of Mexico 2,003 1,646 3,913 3,027
International Offshore 2,446 2,308 4,835 4,476
International Land 15,772 10,946 30,775 20,348
Utilization
Gulf of Mexico 47% 43% 49% 40%
International Offshore 87% 91% 89% 90%
International Land 77% 62% 77% 60%
PRIDE INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEET
(in thousands)
JUNE 30, DECEMBER 31,
2003 2002
----------- ------------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 68,674 $ 133,986
Restricted cash 52,161 52,700
Trade receivables, net 314,457 265,885
Parts and supplies, net 81,490 64,920
Deferred income taxes 3,320 3,332
Other current assets 173,797 148,561
----------- -----------
Total current assets 693,899 669,384
----------- -----------
PROPERTY AND EQUIPMENT, net 3,400,047 3,395,774
----------- -----------
OTHER ASSETS
Investments in and advances to affiliates 30,576 29,620
Goodwill, net 69,014 72,014
Other assets 167,276 158,203
----------- -----------
Total other assets 266,866 259,837
----------- -----------
$ 4,360,812 $ 4,324,995
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 175,161 $ 186,657
Accrued expenses 239,194 243,190
Deferred income taxes 957 985
Short-term borrowings 44,145 17,724
Current portion of long-term debt 184,414 95,610
Current portion of long-term lease obligations 2,761 2,679
----------- -----------
Total current liabilities 646,632 546,845
----------- -----------
OTHER LONG-TERM LIABILITIES 97,983 91,145
LONG-TERM DEBT, net of current portion 1,730,886 1,791,619
LONG-TERM LEASE OBLIGATIONS, net of current portion 11,155 12,511
DEFERRED INCOME TAXES 75,931 100,966
MINORITY INTEREST 91,631 82,204
STOCKHOLDERS' EQUITY 1,706,594 1,699,705
----------- -----------
$ 4,360,812 $ 4,324,995
=========== ===========