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OPI CONFIRMS SLOWDOWN IN GULF OF MEXICO CONSTRUCTION ACTIVITY

 OPI CONFIRMS SLOWDOWN IN GULF OF MEXICO CONSTRUCTION ACTIVITY
 HOUSTON, June 26 /PRNewswire/ -- Offshore Pipelines, Inc. (NYSE: OFP) today announced that it continued to experience declines in construction activity in the Gulf of Mexico during May and June, the first two months of the 1992 Gulf construction season, from the year earlier levels as a result of the overall reduction in construction activity in the area.
 Frank Wade, chairman and chief executive officer noted: "While we continue to achieve gains in our activities in international areas, which currently comprises approximately 75-80 percent of company revenues, and have relocated a number of our construction vessels from the Gulf of Mexico to pursue opportunities in these areas, the decline in activity in the Gulf of Mexico will likely result in revenues and earnings for the fourth quarter falling below current Wall Street expectations. Projects in the Gulf of Mexico are generally proposed and awarded only a short period before performance and as a result it is not possible to predict the extent of the reduction in revenues or earnings, although we believe revenues for the fourth quarter could be $15-20 million below current analyst estimates of approximately $90-100 million and less than the revenues generated by the company in the fourth quarter of fiscal year 1991. We anticipate that construction activity in the Gulf of Mexico during the remainder of the 1992 construction season, which lasts through the first quarter of fiscal 1993, will also be at levels below that experienced during the 1991 season."
 The company indicated that it was continuing to experience higher operating margins on its international operations and the company believes that this, together with the results from joint venture operations and the gains on the sale of certain assets, will result in fourth quarter and fiscal year 1992 earnings being closer to analyst estimates. The company indicated further that it believes earnings per share and operating cash flow for the fourth quarter and fiscal year 1992 should be greater than the corresponding periods of the 1991 fiscal year.
 The company reported revenues and net income of approximately $295 million and $4.5 million, respectively, for the nine months ended April 30, 1992, as compared to $119.5 million and a loss of approximately $12.6 million for the year earlier period. Approximately 70 percent of the revenues during the 1992 period were generated from international operations.
 The company noted that if it is successful in completing its pending offering of senior notes and preferred stock, it would result in a one time, non-cash charge against earnings of approximately $2.3 million that would be recognized during the fourth quarter of fiscal year 1992.
 OPI operates one of the largest marine construction fleets in the world capable of providing a full range of services to the worldwide oil and gas industry. The company is an industry leader in the fabrication and installation of offshore platforms, the laying of marine pipelines, and the salvage, refurbishment, and installation of recycled offshore structures.
 -0- 6/26/92
 /CONTACT: Victor M. Perez of Offshore Pipelines, Inc., 713-952-1000/
 (OFP) CO: Offshore Pipelines Inc. ST: Texas IN: OIL SU:


LR -- NY019 -- 4146 06/26/92 10:32 EDT
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Publication:PR Newswire
Date:Jun 26, 1992
Words:534
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