04-HP-876_newMDA.qxd 12/15/04 3:04 PM Page 35 COMPARISON OF THE YEARS ENDED SEPTEMBER 30, 2004 AND 2003 Operating statistics for per day revenue, expense and mar gin do not include reimbursements of “out-of-pocket” expenses and exclude the effects of offshor platform management contracts. Operating profit in the Company’s U.S. offshore platform rig operations fell from $36.3 million during 2003 to a loss of $34.9 million in 2004 due primarily to the asset impairment charge of $51.5 million. Excluding the asset impairment charge, operating profit would have been $16.6  million for 2004, which is a $19.7 million decline from 2003. *Note: This table is a reconciliation of operating profit (loss) for the offshore platform segment for fiscal 2004 and 2003,  which is provided to assist with yearly comparisons. 36 2004 2003 % Change U.S. OFFSHORE OPERATIONS (in thousands, except operating statistics) Revenues $ 84,993 $112,633 (24.5)% Direct operating expenses 52,987 60,589 (12.5) General and administrative expense 3,256 2,939 10.8 Depreciation 12,107 12,799 (5.4) Asset impairment charge 51,516 – – Operating profit (loss)* (34,873) $ 36,306 (196.1) Operating Statistics: Activity days 2,088 2,233 (6.5)% Average rig revenue per day $  29,432 $ 38,239 (23.0) Average rig expense per day $  16,509 $ 17,822 (7.4) Average rig margin per day $  12,923 $ 20,417 (36.7) Number of owned rigs at end of period 11 12 ( 8.3) Rig utilization 48% 51% (5.9) 2004 2003 (in millions) Operating profit (loss), as reported (34.9) $ 36.3 Asset impairment charge 51.5 — Operating profit, excluding asset impairment charge $  16.6  $ 36.3