Torch Offshore 2003 second quarter results
Posted: 8 August 2003
Torch Offshore, Inc announced revenues for the quarter ended June
30, 2003 were $13.9 million, an increase of 7.5 per cent compared
to revenues of $12.9 million for the second quarter of 2002.
Gross profit (revenues less cost of sales) for the second quarter
of 2003 was $1.4 million or 9.9 per cent of revenues compared to
the second quarter 2002 gross profit of $2.2 million or 17.1 per
cent of revenues.
Second quarter 2003 gross profit was adversely impacted by a $0.7
million ($0.4 million after tax effect, or $0.03 per diluted share)
charge to cost of sales resulting from additional costs incurred
relating to the termination of the Midnight Hunter charter.
The second quarter 2003 net loss attributable to stockholders was
$1.2 million, or $0.09 per diluted share, compared to the net loss
attributable to stockholders in the second quarter of 2002 which
was $0.4 million, or $0.03 per diluted share.
Lyle G. Stockstill, Torch Offshore, Inc. Chairman and Chief Executive
Officer, commented, "The competition in the shallow water Gulf
of Mexico market during the second quarter of 2003 was extremely
intense, resulting in depressed pricing and a lower gross profit
for the Company.
Although the utilization of our fleet remained relatively stable
as compared to traditional second quarter activity, the pricing
structure was simply not there for shallow water pipelay work."
"As for the future of Torch Offshore, we continue to work
towards our goal of entering the deepwater markets of the world
and providing state of the art vessels and opportunity to our customers.
During the second quarter, we completed the necessary modifications
to the Midnight Wrangler, including the addition of cranes, and
it has gone out and successfully completed its first job in the
past few days. In addition, the conversion of the Midnight Express,
a 520-foot dynamically positioned (DP-2) offshore construction vessel
equipped with our patented pipelay system, continues to progress
and should be completed in time for the vessel to enter our active
fleet in the first half of 2004."
First half results
For the first half of 2003, revenues increased 4.3 per
cent to $30.9 million generating a gross profit of $4.7 million
or 15.1 per cent of revenues, compared to year-ago period revenues
of $29.6 million that produced a gross profit of $6.2 million or
20.9 per cent of revenues. Included in cost of sales in the first
six months of 2003 was $1.3 million ($0.9 million after tax effect,
or $0.07 per diluted share) of costs related to the termination
of the Midnight Hunter charter.
The net loss attributable to stockholders for the first six months
of 2003 totaled $1.1 million, or $0.09 per diluted share, compared
to the net income attributable to stockholders in the first six
months of 2002 which was $0.1 million, or $0.01 per diluted share.
Conference Call
A conference call will be held at 10:00 a.m. Central Time
on Friday, August 8, 2003. To participate by telephone, United States
callers can dial (800) 901-5226 and international callers can dial
(617) 786-4513 ten to fifteen minutes prior to the starting time.
The conference ID for all callers is 88664617.
The conference call will also be webcast live on the Internet through
the Investor Relations page on the Company's web site, www.torchinc.com.
The call will be available for replay beginning at 1:00 p.m. (Central
Time) on August 8, 2003 and ending at midnight (Central Time) on
Thursday, August 14, 2003.
For callers in the United States, the toll-free number for the
replay is (888) 286-8010. For international callers, the number
is (617) 801-6888.
The conference ID for all callers for the replay is 37855044. All
individuals listening to the conference call or the replay are reminded
that all conference call material is copyrighted by Torch Offshore,
Inc. and cannot be recorded or rebroadcast without Torch Offshore,
Inc.'s express written consent.
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
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