Pride's deepwater fleet utilization rates jump

Pride International Inc.'s 2Q results established record levels for revenues and income —thanks to excellent performance of its deepwater fleet.

Aug 7th, 2008

Tracy Dulle, Technology Editor

HOUSTON -- Pride International Inc.'s 2Q results established record levels for revenues and income —thanks to excellent performance of its deepwater fleet.

"Five out of eight [deepwater] units achieved utilization of 98% or higher, including 100% utilization of thePride North America," said Louis A. Raspino, president and CEO, speaking today. "In addition, our Gulf of Mexico jackup rig fleet registered notable improvement in utilization, achieving 83% in the second quarter of the year following utilization of 58% as recently as the fourth quarter of 2007."

"Our deepwater fleet was the largest contributor to overall revenue improvement," said Brian Voegele, senior vice president and CFO. "Our average revenue from the deepwater fleet increased $22,300 per day as a result of a short-term farm-out of thePride Rio de Janeiro to a new customer in Brazil for 70 days at an increased day rate."

The farm-out is now complete and the rig has resumed operations under the original contract at the original day rate.

Looking forward to the second half of 2008, Raspino said the company expected to begin benefiting from the commencement of new contracts with significantly higher dayrates on a number of their floating rigs, including their deepwater semisubmersible rigsPride Brazil and Pride Carlos Walter, and the drillship Pride Angola. In their midwater fleet, the semisubmersible rig Pride Mexico commenced 08 a five-year contract offshore Brazil in July 20.

"In addition, following the improvement in utilization seen to date in our US Gulf of Mexico jackup rig fleet, dayrates are now increasing to levels not seen in 24 months, as evidenced by recent contract awards at dayrates of up to $90,000," he said.

Raspino added they are still evaluating 2009, but do anticipate the company will have fewer days out of service than in 2008. Labor costs continue to be an issue as Pride looks forward, as industry and inflationary pressures continue to persist. "We're going to be faced with increased labor costs for some time to come," Raspino said.

08/07/2008

More in Company News