table of contents

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Table of Contents

Corporate Profile

Financial Highlights

To Our Shareholders

Deepwater Technologies

Subsea Services

Salvage Services

CDI Fleet Profile

Financial Review

Corporate Directory

Shareholder Information

This Annual Report includes certain statements that may be deemed "forward looking statements" under applicable law. Forward looking statements and assumptions in this Annual Report that are not statements of historical fact involve risks and assumptions that could cause actual results to vary materially from those predicted, including among other things, unexpected delays and operational issues associated with turnkey projects, the price of crude oil and natural gas, weather conditions in offshore markets, change in site conditions, and capital expenditures by customers. The company strongly encourages readers to note that some or all of the assumptions upon which such forward looking statements are based are beyond the company's ability to control or estimate precisely and may in some cases be subject to rapid and material change.


BCFE (BCF): Billions of cubic feet of natural gas equivalent.

Deepwater: Water depths beyond 1,000 feet.

Dive Support Vessel (DSV): Subsea services are typically performed with the use of specially constructed vessels which serve as an operational base for divers, ROVs and customized underwater construction equipment.

Dynamic Positioning (DP): Satellite based global positioning systems ensure the proper counteraction to wind, current and wave forces and enable the vessel to stay in position without the use of anchors.

EBITDA: Earnings before interest, taxes, depreciation and amortization is a supplemental financial measure of cash flow used in the evaluation of the marine construction industry.

EPIC Contract: Single contract to manage engineering, procurement, installation and commissioning of complex projects.

E&P: Companies involved in oil and gas exploration and production activities.

FSW: Water depth in feet of salt water.

Gulf of Mexico: Referred to in this report as Gulf, Deepwater Gulf, GOM, etc.

Host Structures: Compliant towers and SPARs which tie together the production of a number of subsea wells.

Initial Public Offering (IPO): Cal Dive shares sold to the public in a July, 1997 offering.

MBOPD: Millions of barrels of oil production per day.

MCF: Thousands of cubic feet of natural gas.

Minerals Management Service (MMS): The government regulatory body having responsibility for United States waters in the Gulf of Mexico.

Outer Continental Shelf (OCS): Areas in the Gulf of Mexico from the shore to 1,000 feet of water.

Remotely Operated Vehicle (ROV): Robotic vehicles used to complement, support and increase the efficiency of diving and subsea operations and for tasks beyond the capability of manned diving operations.

Saturation Diving (SAT): SAT diving, required for work in water depths greater than 300 feet, involves divers working from special chambers for extended periods at a pressure equivalent to that at the depth of the work site.