March 14, 2006
Pride delays filing 10-K
Houston-headquartered drilling contractor Pride International, Inc. (NYSE: PDE) says it will delay the filing of its 2005 annual report on Form 10-K until after its due date on March 16, 2006.
Pride says it has "received allegations relating to improper payments to foreign government officials beginning a number of years ago in connection with certain of its overseas operations, as well as corresponding accounting entries and internal control issues."
Pride is one of the world's largest drilling contractors. It provides onshore and offshore drilling and related services in more than 30 countries, operating a fleet of 283 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 29 jackup rigs, and 18 tender-assisted, barge and platform rigs, as well as 222 land rigs.
Pride says the audit committee of its board is overseeing an investigation by outside counsel of the allegations.
"At this time," says a statement issued yesterday, "the company does not know whether the allegations will be substantiated, and if so, who may be implicated or what impact the allegations or the investigation may have on the company, the company's business or the company's financial statements. In light of the status of the audit committee's ongoing investigation and the recent discovery of evidence in the matter, the company has concluded that it cannot file its Form 10-K for the year ended December 31, 2005 until additional information is obtained. Although the audit committee's investigation is being pursued aggressively, the company cannot currently determine whether it will be in a position to file its Form 10-K prior to March 31, 2006, the expiration of the 15-day extension period contemplated by the company's Form 12b-25 to be filed with the SEC.
Pride now anticipates releasing preliminary results for its fourth quarter and full year 2005 on Thursday, March 16, following the market close, which is rescheduled from Tuesday, March 14. The conference call to discuss these preliminary results has also been rescheduled for 9:00 a.m., Central time, on Friday, March 17. Individuals who wish to participate in the conference call may do so by dialing (888) 455-0664 in the United States or (773) 799-3718 outside of the United States. The conference leader will be Louis A. Raspino, President and Chief Executive Officer of Pride, and the password is "Pride."
In addition, the conference call will be broadcast live, on a listen-only basis, over the Internet at Pride's website at http://www.prideinternational.com. A replay of the conference call, as well as the company's historical financial statements, will be available on the Company's corporate web site.