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    Torch Offshore announces 2002 4th quarter and annual earnings

    News // March 28, 2003
    Torch Offshore has announced that revenues for the quarter ended December 31, 2002 were $24.5 million, an increase of 67.4 per cent compared to revenues of $14.6 million for the fourth quarter of 2001. Gross profit (revenues less cost of sales) for the fourth quarter of 2002 was $5.9 million or 24.0 percent of revenues compared to the fourth quarter 2001 gross profit of $3.7 million or 25.5 percent of revenues.

    Fourth quarter 2002 net income attributable to stockholders was $0.5 million or $0.04 per diluted share including noncash specific charges (net of the income tax effect) of $0.6 million related to the write off of costs due to the termination of the Midnight Hunter charter and $0.1 million related to the write off of certain financing costs related to the Midnight Express. Net income attributable to stockholders in the fourth quarter of 2001 was $0.1 million or $0.01 per diluted share including a non-cash specific charge (net of the income tax effect) of $0.6 million relating to the write off of certain deferred costs associated with the Midnight Warrior project.

    Earnings before the noncash specific charges totaled $1.2 million or $0.10 per diluted share for the fourth quarter of 2002, compared to earnings before the noncash specific charge of $0.7 million or $0.05 per diluted share in the fourth quarter of 2001.

    Revenues for the year ended December 31, 2002 increased 15.1 percent to $68.0 million generating a gross profit of $14.6 million or 21.5 percent of revenues, compared to 2001 revenues of $59.1 million that produced a gross profit of $15.9 million or 26.9percent of revenues. The 2002 net income attributable to stockholders was $0.4 million or $0.03 per diluted share including the noncash specific charges (net of the income tax effect) related to the write off of costs due to the termination of the Midnight Hunter charter and the write off of certain financing costs related to the Midnight Express as discussed above.

    The net loss attributable to stockholders in 2001 was $0.7 million or $0.07 per diluted share and included noncash specific charges (net of the income tax effect) of $3.7 million consisting of the deferred cost write off relating to the Midnight Warrioras discussed above, and the company becoming subject to corporate level taxation ($2.6 million) and the loss on early repayment of debt ($0.5 million) in connection with its initial public offering in June 2001. Earnings before the non-cash specific charges totaled $1.1 million or $0.08 per diluted share for 2002, compared to earnings before the noncash specific charges of $3.0 million or $0.27 per diluted share in 2001.

    Lyle G Stockstill, Torch Offshore, Inc. Chairman and Chief Executive Officer, commented, "Our market in 2002 continued to be very competitive and tight given the current state of the world's economies, but we were pleased to be able to maintain a positive bottom line. The hard work and dedication of our operations department was key to our attainment of a positive net income and record annual revenues."

    "The future of the company continues to look bright as we focus on our deepwater expansion program. We are excited about the Midnight Wrangler entering our fleet in the very near future and believe it can make an immediate impact on our operations givenits capabilities. In addition, we continue to work on the conversion of the Midnight Express and believe that its scheduled delivery for late 2003/early 2004 should work well with the current market projections at that time. We believe the Midnight Express will be an economical alternative for our customers and should command a fair share of the deepwater market."

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