American Oilfield Divers, Inc. announces outlook for second quarter 1995; Company also reports largest work backlog in its history.
In addition, American Oilfield Divers announced that it currently has approximately $13.0 million in work backlog for the remainder of the fiscal year, the largest in Company history.
For the second year running, unusually adverse weather conditions in the Gulf of Mexico contributed to the loss. Other factors contributing to the loss were the traditional seasonal decline in U.S. inland activity, lower gross profit margins in the Gulf of Mexico services sector, lower than expected utilization levels for the Company's pipelay/bury barge, and the cost incurred in connection with the Company's Middle East expansion as well as the integration of AOD's acquired and newly organized operations. Partially offsetting the loss were higher than expected activity levels in West Africa.
"Despite the adverse factors experienced during the second quarter, we are optimistic about our prospects in the third and fourth quarters," said Mr. Prentiss A. Freeman, Executive Vice President and Chief Operating Officer. "Currently, AOD has approximately $13.0 million in work backlog, the largest in Company history. Also, our dive crew and vessel utilization rates in early May have increased significantly over the second quarter levels, and we expect this trend to continue in the third and fourth quarters, as we have, at this point, the most backlogged diving work in the Gulf of Mexico in several years," Freeman said.
AOD will announce its second quarter earnings in mid-June.
American Oilfield Divers, Inc., headquartered in Lafayette, La., is a leading provider of a broad range of undersea construction, installation, repair and maintenance services to the offshore oil and gas industry, primarily in the U.S. Gulf of Mexico and U.S. West Coast, internationally and to certain U.S. inland customers. The Company also manufactures and installs subsea pipeline connectors and marginal well production systems that are typically installed through the use of the Company's dive crews and diving support vessels. The Company also owns 14 DSVs and one barge for pipelay and pipe bury operations in the U.S., West Africa and Dubai, U.A.E.
CONTACT: American Oilfield Divers, Inc., Lafayette
Steve Weems or Greg Rosenstein, 318/234-4590
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|Date:||May 23, 1995|
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