Cal Dive 2nd quarter earnings increase 39 per cent

Company News - August 11, 2000

Cal Dive International has announced second quarter net income of $3.7 million, an improvement of 39% over the comparable period in 1999.Diluted earnings per share increased 29% to 23 cents, with the smaller percentage increase due to the additional shares issued to acquire Aquatica, Inc in the third quarter last year. Revenues of just under $40 million were driven by significantly improved gas and oil sales which were two and half times those of the 1999 period.

First half earnings of $6.9 million improved by 45% over the $4.7 million reported in the same period of last year. Diluted earnings per share increased 11 cents or 35%, an increase that does not track with net income improvement due to the additional Aquatica shares.

First half revenues of $80 million increased by $20 million or 33% due principally to the performance of Energy Resource Technology.

Owen Kratz, Chairman and Chief Executive Officer, stated: "Just a year ago the industry was frozen by the generally accepted perception that oil would trade in a range of $10 - 14 per barrel and gas at $1.50 for the rest of our natural lifetimes. Cal Dive reacted by doubling its ownership of offshore properties, and then implementing the aggressive well exploitation programme, which yielded such a dramatic return in the second quarter this year. This success also confirms the corporate strategy that gasand oil operations would run counter-cyclically to those of the marine construction business.

"The number of offshore mobile rigs contracted in the Gulf of Mexico (our leading indicator) has averaged 156 units thus far in 2000 versus 119 last year. With what appears to be a late developing marine construction season, we decided to accelerate regulatory inspections and capital upgrades into the second quarter so that our entire fleet will be on the playing field during what we anticipate will be an unusually active fourth quarter."