Construction company hit by heavy loss

The Associated Press

Gretna, La.-based Torch Offshore Inc., an offshore construction company for the petroleum industry, reported a big first-quarter loss April 15 and said it would have to raise capital over the next two years to continue operating.

For the three months ending March 31, Torch lost $6.8 million, or 54 cents per share, on revenue of $19.4 million, compared with a first-quarter profit last year of $544,000, or 4 cents per share, on revenue of $24.5 million. Much of the company’s problem is due to the conversion of the Midnight Express, a vessel that lays deepwater pipeline. The conversion project, originally projected to cost $90 million, is being completed at a cost of $109 million, the company said. In addition, drilling in the Gulf of Mexico remains slow, despite high oil and natural gas prices, the company said.

“Raising additional capital during 2004 and 2005 is a requirement for the company to continue to conduct operations, meet its obligations and support the operations of the Midnight Express,” Torch Chairman Lyle Stockstill said.

The company said it had entered negotiations with Mariner Energy for the first piping project for the Midnight Express. That project could take place in the fourth quarter of 2004, the company said.