Torch Offshore unveils revenues to end March

Equipment & Technology - May 23, 2003

Torch Offshore in the US has announced that revenues for the quarter ended March 31, 2003 were $17.0 million, an increase of 1.8 per cent compared to revenues of $16.7 million for the first quarter of 2002. Gross profit (revenues less cost of sales) forthe first quarter of 2003 was $3.3 million or 19.3 per cent of revenues compared to the first quarter 2002 gross profit of $4.0 million or 23.8 percent of revenues.

First quarter 2003 net income attributable to stockholders was $0.1 million or $0.01 per diluted share. The first quarter 2003 results were adversely impacted by $0.4 million (after tax effect), or $0.03 per diluted share, due to additional costs relatedto the termination of the Midnight Hunter charter. Net income attributable to stockholders in the first quarter of 2002 was $0.6 million or $0.04 per diluted share.

Lyle G Stockstill, Torch Offshore, Inc. Chairman and Chief Executive Officer, commented, "The first quarter of 2003 continued to be very competitive in the shallow water pipelay market as our fleet maintained only a 61 per cent utilization rate. Despitethe challenges of our market and uncertainties in the world's economies, we were able to maintain a positive bottom line and move forward with our strategy towards the future."

"As for the future of Torch Offshore, we continue to take the appropriate steps toward our strategic goal of entering the deepwater markets of the world. In March 2003, we completed the acquisition of the Midnight Wrangler, a 341ft DP-2 cable-laying vessel, and currently expect the vessel to enter our fleet in the second quarter of 2003. In addition, the conversion of the Midnight Express, a 520ft DP-2 offshore construction vessel equipped with our patented pipelay system, continues to progress and should be completed in time for the vessel to enter our active fleet in early 2004."