Pride Takes Charge to Offset Argentine Fallout

Oil Daily, The, February, 2002

Pride Takes Charge to Offset Argentine Fallout

Pride International on Wednesday took a $6.9 million charge to its fourth-quarter 2001 earnings to cope with fallout from currency changes in Argentina, and gave a dismal outlook for the Gulf of Mexico jackup rig market, especially in the first quarter.

The Houston-based company called the charge "conservative" and expects to have to take no further charges, even in the event of further currency devaluation.

The troubled Argentine government recently enacted changes that require most private-sector contracts to be paid in pesos and that restrict the convertibility of the currency. About 25% of Pride's total revenue last year came from Argentina.

Pride said it is negotiating with its customers...