Torch
updated earnings guidance for Q4 2003
Posted: 12 March 2004
Torch Offshore, Inc announced updated guidance for its earnings
estimates based upon management's unaudited review. The Company
expects to record a net loss for the fourth quarter of 2003 in the
range of $6.8 million to $7.5 million.
Lower than expected utilization of the Company's vessels combined
with a very competitive pricing market in the Gulf of Mexico negatively
impacted the Company's quarterly revenues and gross margin. In addition,
several significant charges are expected to be included in the fourth
quarter 2003 financial results. The Company expects to record a
$1.6 million (pre-tax) asset impairment charge and to take additional
charges of $2.6 million (pre-tax) relating to claims and settlements
for work completed in prior periods. The net loss for the fourth
quarter is also expected to be negatively impacted by approximately
$1.3 million in reduced deferred tax benefits as the Company plans
to establish a valuation allowance limiting a portion of the tax
benefits that would otherwise result from the Company's operating
losses associated with fourth quarter operations.
Regions Bank and Export Development Canada (EDC) have committed
to waive the covenant violations the above mentioned events have
created as of December 31, 2003 and have committed to adjust the
covenant thresholds going forward. Regions Bank and EDC have also
committed to provide the Company an additional $19.0 million of
financing to complete the conversion of the Midnight Express. The
budget on the conversion of the Midnight Express has increased to
a range of $107.0 million to $112.0 million. The completion of the
vessel, including sea trials, is expected in the second half of
2004.
The Company will release its December 31, 2003 financial results
in late March 2004 and will announce the day and time of the release
and related conference call information at a later date.
Established in 1978, Torch Offshore, Inc. is involved in offshore
pipeline installation and subsea construction for the oil and natural
gas industry. Torch Offshore, Inc. is expanding beyond its established
shallow water niche market in order to serve the industry's worldwide
growing needs in the deep waters.
For more information see http://www.torchinc.com
Posted by Richard Price,
Editor Pipeline Magazine
Information supplied by companies
or PR agencies who are responsible for content. Send press releases
to info@pipelinedubai.com |
