Cal Dive reports financials

Company News - May 8, 2000

Cal Dive International has reported first quarter net income of $3.2 million, an improvement of some 54 per cent compared to the same quarter in 1999.

Quarterly revenues also increased 54 per cent, rising by $14.1 million to $40.1 million, while diluted earnings per share rose 43 per cent to 20 cents. The smaller percentage increase reflects the additional shares issued to acquire Aquatica, Inc in thethird quarter last year.

Owen Kratz, Chairman and Chief Executive Officer, stated, "Our ability to increase top line revenues by 54 per cent and, more important, to pull that improvement through to the bottom line, was an impressive performance in a market that, if anything, wasworse than what we faced in the first quarter last year".

"These results were achieved even though six vessels were out of service for a total of 30 weeks undergoing regulatory inspections and related drydock activity".

"The unique attributes of the CDI fleet are evident in the 75 per cent utilisation of those vessels that were available to work in Q1".

"When we formed our production company, Energy Resource Technology, part of the strategy was to help offset the traditional winter slowdown offshore. Commodity prices are typically at high levels during the first quarter, a period when construction activity is severely limited by the winter weather fronts passing through the Gulf of Mexico. Successful implementation of this 'revenue-smoothing' strategy was particularly evident in 2000 as ERT contributed almost half of first quarter net income."