OCEANEERING AT A GLANCE 2003 REV I E W Ear n i n gs of over $29  m illio n were  t h e  t h ir d h ig h es t i n O cea n eeri n g’s  h is t ory.  Recor d p rofi t co n t rib u t io n w as  realize d fro m o u r  I n s p ec t io n seg m e n t a n d n ear-rec or d p erfor m a n ce was ac h ieve d by A d va n ce d T ec h n ologies.  T h e  p rofi t co n t rib u t io n fro m o u r R O V b u si n ess was  t h e sec o n d h ig h es t  ever,  d es p i t e a  p ersis t e n ce of lackl u s t er  d e m a n d  for  d rill s u pp or t  services.  D u ri n g  t h e year we also co mp le t e d  or i n i t ia t e d  acq u isi t io n s a n d m ajor ca p i t al eq u i pm e n t i n ves t m e n t s  t o t ali n g a pp roxi m a t ely $185  m illio n t o  p osi t io n O cea n eeri n g for i n crease d p rofi t abili t y i n t h e years a h ea d .  T o  p rovi d e  t h e f u n d i n g  d ee m e d n ecessary  t o s u pp or t  o u r ca p i t al ex p a n sio n  we ob t ai n e d  a $250  m illio n revolvi n g cre d i t  facili t y. 2003AnnualRepo r t P a ge  4 O ceanee r ing  I n t e r na t ional  REMOTELY OPERATED VEHICLES SUBSEA PRODUCTS MOBILE OFFSHORE PRODUCTION SYSTEMS 2003 REV I E W 2004 OU T L OO K Reve n u e a n d o p era t i n g i n co m e i mp rove d  o t h e s t re n g t h  of  h ig h er ac t ivi t y fro m co n s r u c t io n s u pp or t - rela t e d assig n m e t s a n d i n crease d d e m a n d for  d rill s u pp or t services fro floa t i n g  p ro d c t io n facili t ies. Profi t co n rib u t io n was  t h e seco n d h ig h es t  i h is t ory,  d es p i t e  m e d iocre m arke d e m a n d  for services  t o s u pp or t floa t i n g  rilli g rig o p era t io n s. Fi n a n cial  p er for m a n ce  d ecli n e d as a co seq u e n ce  of a low level of  n ew or d ers for  u m bilicals a n d u m bilical rela t e d co nn ec t io n h ar ware.  T h is was a tt rib u t able  t o o u r lack of d o m es t ic s t e l  t u be  m a n u fac t u ri n g ca p aci y a n d arge t e d job awar d d elays. Reve n u e a n d  gross  m argi n d ecli n e d  as a res l t of a re d u ce d co n t rib u t io n fro m h e  O cean Legend o p era . T h is occ u rre d  as a lower  d ayra t e we n t i n t o effec t w h e n o u r  C u s t o m er  exercise d a co n t rac t t er m ex t e n sio n , t h ro u g h M ay 2006, i n  2002. T h e fi n a n cial co n t rib u t io n fro m t ese o p era t io n s is ex p ec t e d t o i mp rove as a res u l t of i n crease d reve n u e a n d p rofi abili t y fro m foreig  areas of o p era t io n s, i n cl u d i n g t h e S t ol t  R O V flee t  acq u isi t io n . A  m ajor i m p rove m e n t i n fi n a n cial  p erfor m a n ce  is ex p ec e d .  T h is is  a n t ici p a t e d d u e  t o a rise i n u m bilical, valve, fla n ge,  a n d  B O P co t rols  arke t d e m a n d . O u r co mp e t i t ive  p osi t io n t o sec u re s u c h work was ex p a d e d t h ro g h o u r Ro t a t or a n d Refla n ge acq u isi t io n s  i n 2003 a will be e n h a n ce d  f u r t h er by  t h e  n ew s t eel  t u be u m bilical  m a n u fac t u ri n g ca p aci t y we will be a dd i n g d ri n g  t h e year. Bo t h reve n u e a n d gross  m argi n are ex p ec t e d t o be abo u t t h e sa e as  t h e O ceanLegend a n d O ceanP r oduce r are co n t rac t e d t o  h ave si m ilar fi n a n cial  rib u t io n s.  T e PB  SanJacin t o is worki n g o a 120  d ay rolli n g co n rac t ex t e n sio n  a n d  we ex p ec t  i t t o co t i n u e d o so  t h ro u g h o u t t h e year. W e a n t ici p a t e a sig n ifica n t  i n crease i n ear n i n gs co n t rib u t io fro m o u r  M O PS rela t e d  b u si ess by  m ea n s of o r eq u i t y p ar ici p a t io n i n t h e  M e d u sa S p ar.  T h is fi n a n cial res u l t  will be re p or t e d  as eq u i t y ear i gs of  n co n soli d a t e d  affilia t es.