Pride International, Inc. Reports Fourth Quarter and Full Year 2010 Financial Results
SOURCE: Pride International
Feb 17, 2011 08:09 ET
HOUSTON, TX–(Marketwire – February 17, 2011) – Pride International, inc. (NYSE: PDE) todayreported income from continuing operations, net of tax, for the threemonths ended December 31, 2010 of $62.2 million, or $0.35 per dilutedshare. Results for the fourth quarter included costs relating toreactivation and startup programs on the semisubmersible rigs PrideVenezuela and Pride South Seas, along with higher than normal repair andmaintenance expenses on the Pride South Atlantic in preparation forincreased regulatory inspections. The aggregate effect of these itemsnegatively impacted the quarter by $0.03 per diluted share. in addition,the company recognized a charge pertaining to an impairment of a portion ofa receivable from Seahawk Drilling inc. following Seahawk’s Chapter 11bankruptcy filing and severance costs relating to the closure of certainregional offices, which combined, negatively impacted the quarter by anadditional $0.02 per diluted share.
The fourth quarter 2010 results compared to income from continuingoperations, net of tax, for the three months ended September 30, 2010 of$42.8 million, or $0.24 per diluted share. Results for the third quarter of2010 included refinancing charges totaling $16.7 million, or $0.06 perdiluted share, offset by a tax benefit of $0.08 per diluted share, relatingto the change in estimate of the company’s prior year tax liability. Forthe three months ended December 31, 2009, the company reported a loss fromcontinuing operations, net of tax, of $23.2 million, or $0.13 per dilutedshare, which included the impact of an accrual totaling $56.2 millionrelating to the previously announced settlement with the U.S. government.Revenues for the three months ended December 31, 2010 were $400.8 millioncompared to $346.2 million during the three months ended September 30, 2010and $316.7 million during the corresponding three months in 2009.
Net income for the three months ended December 31, 2010 was $52.1 million,or $0.29 per diluted share, including a loss from discontinued operationsof $10.1 million, or $0.06 per diluted share. The reported results comparedto net income of $36.5 million, or $0.20 per diluted share, for the threemonths ended September 30, 2010, including a loss from discontinuedoperations of $6.3 million, or $0.04 per diluted share. For the threemonths ended December 31, 2009, the company reported a net loss of $32.8million, or $0.19 per diluted share, including a loss from discontinuedoperations of $9.6 million, or $0.06 per diluted share.
For the year ended December 31, 2010, income from continuing operations,net of tax, totaled $243.4 million, or $1.37 per diluted share. Net incomefor 2010 was $219.1 million, or $1.23 per diluted share, including a lossfrom discontinued operations of $24.3 million, or $0.14 per diluted share.The results compared to income from continuing operations, net of tax, forthe year ended December 31, 2009 of $340.3 million, or $1.92 per dilutedshare. Net income for 2009 was $285.8 million, or $1.61 per diluted share,including a loss from discontinued operations of $54.5 million, or $0.31per diluted share. Revenues for the year ended December 31, 2010 were$1,460.1 million compared to $1,594.2 million during 2009.
Cash and cash equivalents at December 31, 2010 were $485.0 million comparedto $639.6 million at September 30, 2010. The lower cash and cashequivalents balance was due primarily to the payment in December 2010 ofthe previously announced settlement with the U.S. government, and capitalexpenditures relating to the company’s deepwater drilling expansionprogram, which included an initial payment on the order of its fifthultra-deepwater drillship from Samsung Heavy Industries Ltd. The newdrillship is expected to be delivered from the shipyard in mid-2013.Long-term debt at December 31, 2010 was essentially unchanged from thereported amount at September 30, 2010, at $1.8 billion, while stockholdersequity was $4.5 billion, resulting in a debt-to-total-capital ratio of 29%.
Capital expenditures during the fourth quarter of 2010 totaled $175million, including $84 million toward the company’s deepwater expansionprogram, excluding capitalized interest. For the year ended December 31,2010, capital expenditures were $1,151 million, including $825 millionassociated with the deepwater fleet expansion. during 2010, the companytook delivery of two deepwater drillships, the Deep Ocean Ascension inFebruary and the Deep Ocean Clarion in August. Also in 2010, and aspreviously noted, the company ordered a fifth deepwater drillship with anestimated cost of delivery, excluding capitalized interest, ofapproximately $600 million. in January 2011, the company took delivery ofits third deepwater drillship, the Deep Ocean Mendocino. Following thisdelivery, an estimated $1,064 million in capital expenditures is requiredto complete the deepwater fleet expansion program, consisting of the DeepOcean Molokai and the fifth drillship, to be named at a later date.
Deepwater Segment
Revenues from the company’s Deepwater segment during the fourth quarter of2010 were $270.9 million, up 25% from $216.2 million during the thirdquarter of 2010. Earnings from operations improved 61% to $107.4 millionduring the fourth quarter of 2010 compared to $66.9 million during thepreceding quarter of the year, while earnings before interest, taxes,depreciation and amortization (EBITDA) totaled $137.0 million, up 50% from$91.6 million over the same comparative period. The considerableimprovement in segment results was due primarily to an increase in averagedaily revenues from the semisubmersible rig Pride North America following60 unrecognized contract days in the third quarter of 2010, orapproximately $30 million, resulting from a dispute with the client. Thedispute remains unresolved; however, the company is engaged in a dialoguewith the client in an effort to bring closure to the matter. Also, improvedsegment results were attributable to greater revenues from both thedrillship Deep Ocean Ascension, which earned a special standby dayrate of$360,000 for the entire fourth quarter, and the semisubmersible rig PridePortland, which recognized a contractual dayrate increase in the fourthquarter of 2010 to $305,000 from $141,000 during the third quarter of 2010.Segment operating costs, before client reimbursables, were $130.7 millioncompared to $121.1 million during the third quarter of 2010. The increasewas due significantly to a full quarter of operating costs on the DeepOcean Ascension. Segment utilization improved to 96% in the fourth quarterof 2010 compared to 95% in the preceding quarter of the year, while averagedaily revenues increased to $339,800 from $294,800 over the samecomparative period. The company’s Deepwater segment ended 2010 with 85% ofthe rig days in 2011 under contract, while 75% were under contract in 2012,60% in 2013 and 46% in 2014.
Also, the company provided an update on the status of the deepwaterdrillship Deep Ocean Clarion. The rig arrived in the U.S. Gulf of Mexico inJanuary 2011 following the completion of construction activities andmobilization from South Korea. The Deep Ocean Clarion is currently involvedin the process of integrated testing and acceptance with the client, BPExploration & Production (BP). The company has reached an agreement with BPto amend the contract on the rig to provide for a special standby dayrateprior to the startup of the previously agreed five-year contract. Thespecial standby dayrate of $380,000, which gives consideration to theuncertain deepwater drilling environment in the U.S. Gulf of Mexico, isexpected to commence on or before March 1, 2011, and will continue untilthe earlier of the completion of certain customer requested modificationsand upgrades or July 1, 2011. The company expects that the Deep OceanClarion will be relocated to a region outside of the U.S. Gulf of Mexico,with mobilization of the rig expected to commence no later than July 1,2011. upon mobilization, the rig would begin earning the applicabledayrate, which is currently expected to be $596,000 per the terms of theexisting contract for the full five-year term. The contract dayrate hasbeen adjusted to reflect actual operating costs and client requestedcapital upgrades performed while construction of the rig was in progress.
Midwater Segment
Midwater segment revenues for the three months ended December 31, 2010totaled $97.8 million, a 13% increase from $86.2 million during the thirdquarter of 2010, due primarily to the commencement of operations on thesemisubmersible rig Pride Venezuela. The rig, which completed a lengthyshipyard program in July 2010, began a one-year contract offshore Brazil onOctober 1, 2010 and began earning full dayrate on November 13.Approximately 43 days, or $11.4 million of revenue, were lost during theperiod primarily as a result of delays caused by the time required to clearregulatory inspections before drilling could commence. Also, higherutilization was achieved on the semisubmersible rig Pride South Americafollowing 42 days in the shipyard during the third quarter of 2010.Earnings from operations were $10.4 million and EBITDA was $21.9 millionduring the fourth quarter of 2010 compared to earnings from operations andEBITDA of $12.5 million and $25.7 million, respectively, during the thirdquarter of 2010. The decline was due primarily to reactivation and startupcosts on the Pride Venezuela, which had been idle since March 2009, and onthe Pride South Seas, which has been idle since August 2009. Thissemisubmersible has experienced an increase in client interest for drillingprograms in West Africa and the company commenced a reactivation program inthe fourth quarter in order to address client needs in 2011. Segmentoperating costs during the fourth quarter of 2010 increased to $74.8 million, before client reimbursables, compared to $60.4 million in thethird quarter of 2010 due significantly to the Pride Venezuela and PrideSouth Seas startup and reactivation costs and higher activity on the PrideSouth America. Segment utilization improved to 73% in the fourth quarter of2010 compared to 58% in the third quarter of 2010, while average dailyrevenues were $243,300 compared to $269,800 over the same comparativeperiod. The Midwater segment had 77% of the rig days in 2011 under contractat December 31, 2010, with 35% contracted in 2012, 14% in 2013 and none in2014.
Independent Leg Jackup Segment
Revenues from the company’s seven independent leg jackup rigs were $12.8million in the fourth quarter of 2010 compared to $24.7 million in thethird quarter of 2010. The segment recorded a loss from operations duringthe fourth quarter of 2010 of $11.6 million and negative EBITDA of $4.1million compared to a loss from operations and positive EBITDA of $0.2million and $6.8 million during the preceding quarter in 2010. Segmentutilization declined to 14% in the fourth quarter of 2010 from 41% in thepreceding quarter of the year as both the jackup rigs Pride Cabinda andPride North Dakota completed contracts at the conclusion of the thirdquarter of 2010. The Cabinda remained idle throughout the fourth quarterand is expected to commence a contract in April 2011. The North Dakotaspent the fourth quarter in a shipyard for planned maintenance. Uponcompletion of the program, the rig commenced a new three-year contractextension in February 2011. Segment operating costs, before clientreimbursables, declined to $16.4 million in the fourth quarter of 2010 from$17.9 million in the preceding quarter of the year, as lower segmentactivity was partially offset by increased rig inspection and rigtransportation costs.
In light of the agreement and plan of merger with Ensco plc announced onFebruary 7, 2011, the company will not host a conference call previouslyannounced for Thursday, February 17, 2011 at 11:00am, EST. However, thecompany expects to file its Annual Report on Form 10-K with the Securitiesand Exchange Commission within the week.
Pride International, inc., headquartered in Houston, Texas, operates afleet of 26 mobile offshore drilling units, consisting primarily offloating rigs (semisubmersibles and drillships) that address deepwaterdrilling programs around the world. The company has one of the youngest andmost technologically advanced deepwater drilling fleets in the offshoreindustry, with five drillships, including three delivered since 2010, sixsemisubmersible rigs and two managed deepwater rigs. two additionaldeepwater drillships are currently under construction with expecteddeliveries in 2011 and 2013. The company’s fleet also includes six othersemisubmersible rigs and seven jackup rigs. Pride International’s floatingrig fleet operates primarily offshore Brazil and West Africa where thecompany has a long-standing presence.
The information above includes forward-looking statements within themeaning of the Securities Act of 1933 and the Securities Exchange Act of1934. these forward-looking statements are subject to certain risks,uncertainties and assumptions identified above or as disclosed from time totime in the company’s filings with the Securities and Exchange Commission.as a result of these factors, actual results may differ materially fromthose indicated or implied by such forward-looking statements.
Pride International, inc. Consolidated Statements of Operations (In millions, except per share amounts) three Months ended December 31, ———————— 2010 2009 ———– ———– REVENUES Revenues, excluding reimbursable revenues $ 392.2 $ 310.4 Reimbursable revenues 8.6 6.3 ———– ———– 400.8 316.7 ———– ———–COSTS AND EXPENSES Operating costs, excluding depreciation and amortization 240.1 212.3 Reimbursable costs 8.0 5.7 Depreciation and amortization 50.6 40.7 General and administrative, excluding depreciation and amortization 26.2 25.2 Department of Justice and Securities and Exchange Commission fines – 56.2 Loss on sales of assets, net 0.3 0.1 ———– ———– 325.2 340.2 ———– ———–EARNINGS FROM OPERATIONS 75.6 (23.5) OTHER INCOME (EXPENSE), NET interest expense, net of amounts capitalized (6.8) – interest income 0.7 0.4 other income (expense), net (1.6) (0.9) ———– ———–INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 67.9 (24.0)INCOME TAXES (5.7) 0.8 ———– ———–INCOME FROM CONTINUING OPERATIONS, NET OF TAX 62.2 (23.2)LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX (10.1) (9.6) ———– ———–NET INCOME $ 52.1 $ (32.8) =========== ===========BASIC EARNINGS PER SHARE: Income from continuing operations attributable to common shareholders $ 0.35 $ (0.13) Loss from discontinued operations (0.06) (0.06) ———– ———– Net income $ 0.29 $ (0.19) =========== ===========DILUTED EARNINGS PER SHARE: Income from continuing operations attributable to common shareholders $ 0.35 $ (0.13) Loss from discontinued operations (0.06) (0.06) ———– ———– Net income $ 0.29 $ (0.19) =========== ===========SHARES USED IN PER SHARE CALCULATIONS Basic 175.8 174.4 Diluted 176.5 174.4 Pride International, inc. Consolidated Statements of Operations (In millions, except per share amounts) Year ended December 31, ——————————- 2010 2009 2008 ——— ——— ——— REVENUES Revenues, excluding reimbursable revenues $ 1,431.5 $ 1,563.5 $ 1,664.7 Reimbursable revenues 28.6 30.7 37.9 ——— ——— ——— 1,460.1 1,594.2 1,702.6 ——— ——— ———COSTS AND EXPENSES Operating costs, excluding depreciation and amortization 871.9 828.3 766.5 Reimbursable costs 24.9 27.3 34.9 Depreciation and amortization 184.0 159.0 147.3 General and administrative, excluding depreciation and amortization 103.9 110.5 126.7 Department of Justice and Securities and Exchange Commission fines – 56.2 – Loss (gain) on sales of assets, net 0.2 (0.4) 0.1 ——— ——— ——— 1,184.9 1,180.9 1,075.5 ——— ——— ———EARNINGS FROM OPERATIONS 275.2 413.3 627.1 OTHER INCOME (EXPENSE), NET interest expense, net of amounts capitalized (13.4) (0.1) (20.0) Refinancing charges (16.7) – (2.3) interest income 2.9 3.0 16.8 other income (expense), net 4.0 (4.1) 20.6 ——— ——— ———INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 252.0 412.1 642.2INCOME TAXES (8.6) (71.8) (133.5) ——— ——— ———INCOME FROM CONTINUING OPERATIONS, NET OF TAX 243.4 340.3 508.7 INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX (24.3) (54.5) 342.4 ——— ——— ———NET INCOME $ 219.1 $ 285.8 $ 851.1 ========= ========= =========BASIC EARNINGS PER SHARE: Income from continuing operations attributable to common shareholders $ 1.37 $ 1.93 $ 2.95 Income (loss) from discontinued operations (0.14) (0.31) 1.99 ——— ——— ——— Net income $ 1.23 $ 1.62 $ 4.94 ========= ========= =========DILUTED EARNINGS PER SHARE: Income from continuing operations attributable to common shareholders $ 1.37 $ 1.92 $ 2.89 Income (loss) from discontinued operations (0.14) (0.31) 1.94 ——— ——— ——— Net income $ 1.23 $ 1.61 $ 4.83 ========= ========= =========SHARES USED IN PER SHARE CALCULATIONS Basic 175.6 173.7 170.6 Diluted 176.2 174.0 175.2 Pride International, inc. Consolidated Balance Sheets (In millions) December 31, ———————— 2010 2009 ———– ———– ASSETSCURRENT ASSETS: Cash and cash equivalents $ 485.0 $ 763.1 Trade receivables, net 200.3 211.9 Deferred income taxes 10.1 21.6 other current assets 127.3 167.6 ———– ———– Total current assets 822.7 1,164.2PROPERTY AND EQUIPMENT 7,337.0 6,091.0 less: accumulated depreciation 1,375.8 1,200.7 ———– ———– Property and equipment, net 5,961.2 4,890.3OTHER ASSETS, NET 87.8 88.4 ———– ———– Total assets $ 6,871.7 $ 6,142.9 =========== =========== LIABILITIES AND STOCKHOLDERS’ EQUITYCURRENT LIABILITIES: Current portion of long-term debt $ 30.3 $ 30.3 Accounts payable 112.3 132.4 Accrued expenses and other current liabilities 217.0 339.7 ———– ———– Total current liabilities 359.6 502.4 OTHER LONG-TERM LIABILITIES 101.5 118.3 LONG-TERM DEBT, NET OF CURRENT PORTION 1,833.4 1,161.7 DEFERRED INCOME TAXES 60.9 102.7 STOCKHOLDERS’ EQUITY: Preferred stock – - Common stock 1.8 1.8 Paid-in capital 2,103.0 2,058.7 Treasury stock, at cost (21.8) (16.4) Retained earnings 2,429.9 2,210.8 Accumulated other comprehensive income 3.4 2.9 ———– ———– Total stockholders’ equity 4,516.3 4,257.8 ———– ———– Total liabilities and stockholders’ equity $ 6,871.7 $ 6,142.9 =========== =========== Pride International, inc. Consolidated Statements of Cash Flows (In millions) Year ended December 31, ———————————- 2010 2009 2008 ———- ———- ———-CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES:Net income $ 219.1 $ 285.8 $ 851.1Adjustments to reconcile net income to net cash from operating activities: Gain on sale of Eastern Hemisphere land rigs – (5.4) (6.2) Gain on sale of tender-assist rigs – - (121.4) Gain on sale of Latin America and E&P Services segments – - (56.8) Gain on sale of equity method investment – - (11.4) Depreciation and amortization 184.0 196.5 210.8 Refinancing charges 12.3 – - Amortization and write-offs of deferred financing costs 6.1 2.4 5.2 Amortization of deferred contract liabilities (45.8) (53.8) (59.0) Impairment charges – 33.4 – Gain on sales of assets, net (0.1) (0.4) (24.0) Deferred income taxes (27.8) (13.2) 78.1 Excess tax benefits from stock-based compensation (2.8) (1.5) (7.7) Stock-based compensation 32.7 35.9 24.8 other, net 2.2 0.9 2.2Net effect of changes in operating accounts (39.4) 142.8 (26.9)Change in deferred gain on asset sales and retirements – 4.9 (12.3)Increase (decrease) in deferred revenue (9.6) 13.8 (8.7)Decrease (increase) in deferred expense (8.7) (15.0) 6.3 ———- ———- ———-NET CASH FLOWS FROM OPERATING ACTIVITIES 322.2 627.1 844.1CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES: Purchases of property and equipment (1,253.3) (994.4) (984.0) Reduction of cash from spin-off of Seahawk – (82.4) – Proceeds from dispositions of property and equipment 1.4 7.4 65.8 Proceeds from the sale of Eastern Hemisphere land rigs, net – 9.6 84.9 Proceeds from sale of tender-assist rigs, net – - 210.8 Proceeds from sale of equity method investment – - 15.0 Proceeds from insurance – - 25.0 ———- ———- ———-NET CASH FLOWS USED IN INVESTING ACTIVITIES (1,251.9) (1,059.8) (582.5)CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES: Repayments of borrowings (542.6) (30.3) (537.2) Proceeds from debt borrowings 1,200.0 498.2 68.0 Debt finance costs (17.3) (6.2) (2.7) Net proceeds from employee stock transactions 8.7 20.1 24.7 Excess tax benefits from stock-based compensation 2.8 1.5 7.7 ———- ———- ———-NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES 651.6 483.3 (439.5)Increase (decrease) in cash and cash equivalents (278.1) 50.6 (177.9)CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 763.1 712.5 890.4 ———- ———- ———-CASH AND CASH EQUIVALENTS, END OF PERIOD $ 485.0 $ 763.1 $ 712.5 ========== ========== ========== Pride International, inc. Quarterly Continuing Operating Results by Segment (In millions) three Months ended December 31, September 30, December 31, —————————————– 2010 2010 2009 ———— ————- ————Deepwater revenues: Revenues, excluding reimbursables $ 267.3 $ 212.1 $ 176.0 Reimbursable revenues 3.7 4.1 2.1 ———— ————- ————Total Deepwater revenues 271.0 216.2 178.1 Midwater revenues: Revenues, excluding reimbursables 96.8 86.1 74.0 Reimbursable revenues 1.0 0.1 1.7 ———— ————- ————Total Midwater revenues 97.8 86.2 75.7 Independent Leg Jackup revenues: Revenues, excluding reimbursables 12.5 24.5 43.2 Reimbursable revenues 0.3 0.2 0.7 ———— ————- ————Total Independent Leg Jackup revenues 12.8 24.7 43.9Other 19.0 19.0 17.4Corporate 0.2 0.1 1.6 ———— ————- ————Total revenues $ 400.8 $ 346.2 $ 316.7 ============ ============= ============ Earnings (loss) from continuing operations:Deepwater $ 107.4 $ 66.9 $ 47.4Midwater 10.4 12.5 7.9Independent Leg Jackups (11.6) (0.2) 3.1Other 0.1 2.1 0.9Corporate (30.7) (25.3) (82.8) ———— ————- ————Total $ 75.6 $ 56.0 $ (23.5) ============ ============= ============ Pride International, inc. Annual Continuing Operating Results by Segment (In millions) Year ended December 31, ———————————- 2010 2009 2008 ———- ———- ———-Deepwater revenues: Revenues, excluding reimbursables $ 916.3 $ 810.3 $ 874.6 Reimbursable revenues 14.2 12.8 7.6 ———- ———- ———-Total Deepwater revenues 930.5 823.1 882.2 Midwater revenues: Revenues, excluding reimbursables 365.8 412.9 419.5 Reimbursable revenues 1.7 6.5 6.0 ———- ———- ———-Total Midwater revenues 367.5 419.4 425.5 Independent Leg Jackup revenues: Revenues, excluding reimbursables 89.4 264.0 273.9 Reimbursable revenues 1.3 1.3 1.3 ———- ———- ———-Total Independent Leg Jackup revenues 90.7 265.3 275.2 other 70.9 83.0 119.2Corporate 0.5 3.4 0.5 ———- ———- ———-Total revenues $ 1,460.1 $ 1,594.2 $ 1,702.6 ========== ========== ========== Earnings (loss) from continuing operations:Deepwater $ 344.8 $ 348.3 $ 454.7Midwater 66.5 129.0 163.6Independent Leg Jackups (25.1) 105.4 133.2Other 3.8 4.8 7.8Corporate (114.8) (174.2) (132.2) ———- ———- ———-Total $ 275.2 $ 413.3 $ 627.1 ========== ========== ========== Pride International, inc. Quarterly Selected Offshore Drilling Services Metrics Q4 2010 Q3 2010 Q4 2009 ——————- ——————- ——————- Averge Averge Averge Daily Daily Daily Revenues Utiliza- Revenues Utiliza- Revenues Utiliza- (1) tion(2) (1) tion(2) (1) tion(2) ——— ——– ——— ——– ——— ——–Deepwater $ 339,800 96% $ 294,800 95% $ 322,700 75%Midwater $ 243,300 73% $ 269,800 58% $ 249,100 55%Jackups – Independent Leg $ 139,400 14% $ 92,400 41% $ 122,500 56% (1) Average daily revenues are based on total revenues for each type of rigdivided by actual days worked by all rigs of that type. Average dailyrevenues will differ from average contract dayrate due to billingadjustments for any non-productive time, mobilization fees, demobilizationfees, performance bonuses and charges to the customer for ancillaryservices. (2) Utilization is calculated as the total days worked divided by the totaldays in the period. Pride International, inc. Annual Selected Offshore Drilling Services Metrics Year ended December 31, 2010 2009 2008 ——————- ——————- ——————- Averge Averge Averge Daily Daily Daily Revenues Utiliza- Revenues Utiliza- Revenues Utiliza- (1) tion(2) (1) tion(2) (1) tion(2) ——— ——– ——— ——– ——— ——–Deepwater $ 327,300 93% $ 335,100 84% $ 310,100 97%Midwater $ 261,000 64% $ 258,700 74% $ 249,400 78%Jackups – Independent Leg $ 101,400 35% $ 123,000 84% $ 121,100 89% (1) Average daily revenues are based on total revenues for each type of rigdivided by actual days worked by all rigs of that type. Average dailyrevenues will differ from average contract dayrate due to billingadjustments for any non-productive time, mobilization fees, demobilizationfees, performance bonuses and charges to the customer for ancillaryservices. (2) Utilization is calculated as the total days worked divided by the totaldays in the period. Pride International, inc. Reconciliation of Earnings before interest, Taxes and Depreciation and Amortization (EBITDA) (In millions)
We believe that this non-GAAP financial measure, EBITDA, is meaningfulinformation that our management considers when making investment decisions.we believe it also provides supplemental information regarding ouroperating results with respect to both the performance of our fundamentalbusiness activities and our ability to meet our future debt service,capital expenditures and working capital requirements. we also believeinvestors and analysts commonly use EBITDA as a widely accepted financialindicator to analyze and compare companies on the basis of operatingperformance that have different financing and capital structures and taxrates. EBITDA is not a substitute for the U.S. GAAP measures of earnings orof cash flow and is not necessarily a measure of the company’s ability tofund its cash needs.
———————————- Q4 2010 Q3 2010 Q4 2009 ———- ———- ———-DeepwaterIncome from continuing operations $ 107.4 $ 66.9 $ 47.4Plus: Total interest expense, net – - -Plus: Income tax provision – - -Plus: Depreciation and amortization 29.6 24.7 19.9 ———- ———- ———-EBITDA 137.0 91.6 67.3 MidwaterIncome from continuing operations 10.4 12.5 7.9Plus: Total interest expense, net – - -Plus: Income tax provision – - -Plus: Depreciation and amortization 11.5 13.2 11.2 ———- ———- ———-EBITDA 21.9 25.7 19.1 Independent Leg JackupsIncome (loss) from continuing operations (11.6) (0.2) 3.1Plus: Total interest expense, net – - -Plus: Income tax provision – - -Plus: Depreciation and amortization 7.5 7.0 7.7 ———- ———- ———-EBITDA (4.1) 6.8 10.8 other & CorporateLoss from continuing operations (44.0) (36.4) (81.6)Plus: Total interest expense, net 6.1 5.4 (0.4)Plus: Income tax provision 5.7 (15.0) (0.8)Plus: Depreciation and amortization 2.0 1.8 1.9 ———- ———- ———-EBITDA (30.2) (44.2) (80.9) Total Pride International inc. Income (loss) from continuing operations 62.2 42.8 (23.2)Plus: Total interest expense, net 6.1 5.4 (0.4)Plus: Income tax provision 5.7 (15.0) (0.8)Plus: Depreciation and amortization 50.6 46.7 40.7 ———- ———- ———-EBITDA $ 124.6 $ 79.9 $ 16.3 ========== ========== ==========
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