Thursday, April 30, 2009

Pride Int.(NYSE: PDE) Q1/09

Revenues $549.3 million (+1.7%)

Net cash flows from (used in) operating
activities
$166.3 million (+76.4%)

Net income $158.9 million (-34%)

EPS $0.90 (-33%)

Net margin 29%

Balance sheet

Assets
Current $1,286.5 million
Total $6,113.3 million

Liabilities
Current $513.0 million
Total $1547.6 million

Equity $4,565.7 million

P/E(TTM) 5.2, P/B 0.88

The report


Outlook
"We are encouraged by the improvement in crude oil prices since the February 2009 lows and believe we are now experiencing a more sustainable trading range with growing expectations for long-term strengthening. At the same time, instability in the capital markets along with its impact on general economic conditions and energy demand continue to present uncertainty. We remain confident in the long-term fundamental strength of the offshore drilling industry, especially in the deepwater segment where geologic success rates, the application of new technologies and emerging deepwater frontiers are supporting a strong long-term growth outlook."


Comments: Last years Q1 report contained a few significant positive one time items, which distorts the y-o-y comparison. Pride underperforms its peers consistently with a massive margin: Q1 net margins: Pride 29%, Noble 46%, Diamond 39%, Ensco 43%.
After the spinoff of the mat-supported jackups(aka scrap metal) PDE is ready to be merged with a better managed company. Another possibility is the firing of the entire upper management.
Pride's fleet status report update contained three new contracts for jackups and an option exercise also for a jackup. BP has informed Pride that it doesn't intend to extend the Holstein SPAR management contract.

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