Horizon Offshore Reports Third Quarter Earnings

Horizon Offshore, Inc. reported net income for the quarter ended September 30, 2001, of $2.8 million. This compares with net income of $3.7 million, for the third quarter of 2000. For the third quarter of 2001, the company reported gross profit of $7.7 million, or 12.6 percent, on contract revenues of $61.0 million, compared with gross profit of $10.3 million, or 18.2 percent, on contract revenues of $56.3 million in 2000.

Horizon also reported net income for the nine months ended September 30, 2001, of $10.3 million. This compares with net income of $5.0 million, for the nine months ended September 30, 2000. Gross profit was $30.2 million, or 15.2 percent, on contract revenues of $198.4 million for the first nine months of 2001, and gross profit was $17.9 million, or 16.5 percent, on contract revenues of $108.8 million for the first nine months of 2000.

"During September, we purchased the Sea Horizon, a combination derrick/lay barge. We are currently upgrading and modifying this vessel in Batam, Indonesia, and upon completion it will be the company's largest combination barge, enabling it to perform turnkey projects in remote locations with a single mobilization. The purchase of this vessel represents our entry into Southeast Asia, where we anticipate an increase in construction activity providing opportunities to deliver further profitability. Although the current offshore construction market remains extremely competitive, our deployments into selected international areas continue to elevate our earnings capacity, and we remain clearly focused on the strategies to achieve continued growth," said Bill J. Lam, president and chief executive officer.