Cal Dive International awarded an EPIC contract by Pemex Exploración y Producción; updates Q1 2013 expectations.
The contract is for the engineering, procurement, installation and commissioning (EPIC) of 12 kilometers of eight-inch subsea pipeline and associated tie-ins on four existing platforms located in the Abkatun-Pol-Chuc Field in the Bay of Campeche.
It is expected to generate total revenue of approximately $63 million and will utilize three of the Company’s vessels. The offshore construction is expected to commence in the third quarter 2013.
The Company is also providing an update on its previously disclosed expected first quarter results. The current expectation is that the first quarter results will be lower than those estimated during the fourth quarter 2012 earnings conference call but still significantly improved over first quarter of 2012.
The primary reasons for the adjustment in estimate include zero utilization days in March for the dive support vessel Texas in West Africa due to the unexpected cancellation of its contracted work that was previously scheduled for the month due to a change in the client’s project plans, higher than expected employee medical costs, and lower than expected pricing for surface diving services in the U.S. Gulf of Mexico.
Cal Dive International, Inc., headquartered in Houston, Texas, provides an integrated offshore construction solution to its customers, including manned diving, pipelay and pipe burial, platform installation and salvage, and light well intervention services.