04-HP-876_newMDA.qxd 12/15/04 3:04 PM Page 41 construction during 2003, whereas two new platform rigs were  completed during 2002. COMPARISON OF THE YEARS ENDED SEPTEMBER 30, 2003 AND 2002 Operating statistics of per day revenue, expense and margin do not include reimbursements of “out-of-pocket” expenses, the effects of management contracts, or the effect of currency revaluation expense. Rig activity, revenues and operating profit in the Company’s  international operations declined fr om 2002 to 2003. The general softness in the international markets was broad based and resulted in lower utilizations in each of the countries in which the Company operated during the 2002-2003 period. The Company’s Venezuelan operations, wher the largest number of international rigs are located, were also hampered by an attempted coup, which resulted in a strike by workers at PDVSA, the gov ernment-o wned oil company. The Company has currency risks in V enezuela described in detail later in the MD&A under Foreign Currency E xchange Rate Risk. Due to that exposure, the Company recorded currency devaluation losses for Venezuelan operations totaling $.6 million in 2003 and $4.4 million in 2002. 42 2003 2002 % Change INTERNATIONAL OPERATIONS (in thousands, except operating statistics) Revenues $109,812 $151,392 (27.5)% Direct operating expenses 81,461 115,294 (29.3) General and administrative expense 3,110 2,634 18.1 Depreciation 20,092 20,336 (1.2) Operating profit $ 5,149 $ 13,128 ( 60.8) Operating Statistics: Activity days 4,515 5,956 (24.2)% Average rig revenue per day $ 19,603 $ 21,161 (7.4) Average rig expense per day $ 14,140 $ 14,599 (3.1) Average rig margin per day $  5,463 $ 6,562 (16.7) Number of owned rigs at end of period 32 33 (3.0) Rig utilization 39% 51% (23.5)