Offshore contract drilling services provider Pride International, Inc. (PDE) Thursday, reported that its third quarter net income declined sharply from the previous year quarter as revenues declined significantly impacted by out-of-service time of many rigs.
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The company recorded net income of $35.6 million or $0.20 per share, compared to $189.1 million or $1.08 per share last year. Results for the quarter included severance costs totaling $6.9 million or $0.03 per share associated with certain organizational changes.
Earnings from continuing operations were $79.9 million or $0.45 per share, compared to $144.2 million or $0.82 per share in the same quarter last year.
On average, 27 analysts polled by Thomson Reuters expected the company to record earnings of $0.43 per share. Analysts' estimates typically exclude special items.
Revenues declined to $386.1 million from $463.3 million in the prior-year quarter. Analysts estimated revenues of $400.39 million.
For the nine months, income from continuing operations was $363.5 million or $2.06 per share, while net income totaled $318.6 million or $1.80 per share, including a loss from discontinued operations of $44.9 million or $0.26 per share.
For the comparable nine months of 2008, income from continuing operations was $336.3 million or $1.89 per share. Net income during the same nine months of 2008 was $616.4 million or $3.47 per share, including income from discontinued operations of $280.1 million or $1.58 per share.
Revenues for the nine months totaled $1.28 billion compared to $1,21 billion during the corresponding nine months a year back.
Pride International, based in Houston, Texas, which operates a fleet of 23 rigs, noted that the contract backlog currently exceeds $7 billion, representing 125% of the company's enterprise value, with strong earnings and cash flow growth expected to begin in 2011.
PDE is currently being traded at $31.35 up $0.93 or 2.96% on a volume of 3.446 million shares on the NYSE.
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