offshore platform business were mainly due to a drop in rig utilization to 48 percent in 2004, from 51 per cent in 2003 and 83 percent in 2002. Late in 2003, renegotiations for additional work for two rigs under the expiring contracts resultedin lower dayrates, thereby contributing to the decline in rev enues. Also late in 2003, two other rigs were moved to an active standb status which also lowered revenues, even though those rigs remained activ e. International rig revenues declined from 2002 to 2003, and r ose during 2004 as rig utilizations fell from 51 percent in 2002, to 39 percent in 2003, and then rose to 54 percent in 2004. 

Revenues from investments were $27.6 million in 2004, $8.0 million in 2003, and $28.1 million in 2002. I ncluded in revenues was the aggregate of pre-tax gains, losses, and write-downs relating to the Company’s portfolio of equity securities which were $25.4 million in 2004, $5.5 million in 2003, and $24.8 million in 2002. Interest and dividend income fell in each year due to reduced cash positions, lower interest rates, and a reduction in the Company’s equity portfolio. Total interest and dividend income was $2.0 million in 2004, $2.5 million in 2003, and $3.6 million in 2002. 

Direct operating costs in 2004 were $416.6 million or 70 percent of operating revenues, compared with $345.5 million or 68 percent of operating revenues in 2003, and $361.7 million or 69 percent of operating revenues in 2002. The 2003 expense to revenue percentage would basically be the same as 2002 and only slightly less than 2004 except for the fact that in the offshor platform segment in 2003 one contract had higher than normal margins and significant early termination revenues. 

