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Petroleum industry

Pride Petroleum Services Inc Expands International Operations with Record-Breaking Contract

Strategic Insights

— 1 min read

Pride Petroleum Services Inc has made significant strides in expanding its international operations, securing a major contract with Lagoven SA for the construction and operation of two drilling/workover barges in Venezuela. The contract, valued at over $100 million over 5 years, marks the company's largest in its history and is expected to generate substantial revenue for the company.

Key Takeaways:

  • Pride has expanded its international operations by buying rig companies in Argentina and Venezuela, and negotiating contracts in the Gulf of Mexico and the Asian-Pacific area.
  • The contract with Lagoven SA is the largest in the company's history, with a value of over $100 million over 5 years, and an option to extend for an additional 5 years.
  • Most of the construction for the rigs and components will be done in Texas at an aggregate cost of $40 million.
  • Pride has 465 rigs, of which 410 are in the United States, making it the second-largest well servicing contractor in the world.
  • The company is planning to expand its operations into the Middle East, India, and Africa, and is close to securing an important onshore contract in the Asian-Pacific region.
  • Revenue from foreign operations is expected to exceed domestic income for the first time this year, with analysts estimating revenue of $180 million and earnings of 30-40 cents per share.
  • Pride has recently registered for a public offering of 6 million shares of common stock, expected to bring $25 million to $30 million.

Statistics:

  • Contract value: over $100 million over 5 years
  • Aggregate construction cost in Texas: $40 million
  • Number of rigs: 465
  • Number of rigs in the United States: 410
  • Revenue (estimated): $180 million
  • Earnings per share (estimated): 30-40 cents

Sources:

  • Pride Petroleum Services Inc press release announcing the contract with Lagoven SA
  • Interview with Eugene C. Fowler, vice president and chief accounting officer for Houston-based Pride
  • Analyst reports and industry research articles
  • Pride Petroleum Services Inc annual reports and SEC filings
  • Article in Oil and Gas Journal, published by PennWell Corporation
  • Article in Houston Business Journal, published by American City Business Journals

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