Horizon Offshore, Inc. reported net income for the quarter ended June 30, 2002, of $2.6 million, or $0.10 per share-diluted. This compares with net income of $5.4 million, or $0.23 per share-diluted, for the second quarter of 2001. For the second quarter of 2002, the company reported gross profit of $9.5 million, or 14.8 percent, on contract revenues of $64.3 million, compared with gross profit of $13.0 million, or 15.6 percent, on contract revenues of $83.3 million in 2001.
Horizon also reported net income for the six months ended June 30, 2002, of $3.0 million which compares with net income of $8.1 million before an extraordinary charge of $0.6 million net of tax for the six months ended June 30, 2001. Gross profit was $14.6 million or 11.2 percent on contract revenues of $130.4 million for the first six months of 2002, and gross profit was $22.5 million or 16.4 percent on contract revenues of $137.4 million for the first six months of 2001.
Horizon successfully completed the Amistad Development Project in Golfo de Guayaquil, Ecuador and the structural project to a loading terminal in Venezuela during the second quarter, contributing to the improved gross profit margins from the first quarter of 2002. Horizon continues to maintain a strong presence in Mexico with the award of two additional projects from Pemex: the construction of a 24-km, 8-inch pipeline and associated platform piping and the rehabilitation of several pipelines in the Cantarell field utilizing the Atlantic Horizon, Gulf Horizon and Pearl Horizon. In the domestic sector, preparation for the Iroquois Pipeline project in Long Island Sound, New York, began in May 2002, and mobilization of the Gulf Horizon for this project is expected in September 2002.
"Our earnings for the second quarter were the results of improvements in our International areas, Mexico, Latin America
and Southeast Asia/Australia, offsetting a very competitive Gulf of Mexico market. We have worked hard, and our growth as an international marine construction company during the current economic conditions is a tribute to our employees and the quality of our services. We are proud to report another profitable quarter, our ninth consecutive," said Bill J. Lam, president and chief executive officer.