Horizon reports second quarter earnings

Company News - July 28, 2000

Horizon Offshore has reported net income for the quarter ended June 30, 2000, of $1.6 million, or $0.08 per share.

This compares with net income of $2.3 million, or $0.12 per share, for the second quarter of 1999. For thesecond quarter of 2000, the company reported gross profit of $6.5 million, or 17.9 percent, on contract revenues of $36.6 million, compared with gross profit of $6.8 million, or 29.1 percent, on contract revenues of $23.4 million in 1999.

Horizon also reported net income for the six months ended June 30, 2000, of $1.3 million, or $0.07 per share, which is net of a $1.4 million, or $0.07 per share, cumulative effect of an accounting change affecting depreciation expense. This compares with net income of $1.7 million, or $0.09 per share for the six months ended June 30, 1999.

Gross profit was $7.7 million or 14.6 percent on contract revenues of $52.5 million for the first six months of 2000, and gross profit was $9.1 million or 25.4 percent on contract revenues of $35.8 million for the first six months of 1999.

"Our second quarter results reflect an improvement in the marine construction market over the first quarter and a strengthened demand for our services. The enhancement of our equipment capabilities, the performance of our people and our commitment to international expansion have all contributed to our ability to meet this increased demand," said Bill Lam, Horizon president and chief executive officer.

"The marine construction industry, during the second quarter, remained competitive. However, as demand for our services increases in the second half of 2000 and into 2001, as the fundamental drivers of our segment point to, we should continue to see improved results in the future," said Lam.

"Horizon has been awarded several large projects during the second quarter... During the second quarter, we beganwork on a major project for Pemex Exploracion y Produccion, which represents our entry into Mexico," said Lam.