Reduced workloads resulted in Bermuda-based oil rig service company losing $3.2 million or 16 cents per share in its second quarter, the company announced this week.

For the same quarter last year the company reported a profit of $1.6 million or eight cents per share.

Second quarter revenues slipped to $27.2 million from $31 million a year earlier.

Arethusa reported a net loss of $4.9 million or 24 cents per share for the half year compared to a profit of $2.7 million or 13 cents per share a year earlier.

First half revenues declined nine percent to $55.4 million from $61.1 million a year earlier, Bloomberg business news reported on Tuesday.

"Utilisation for the second quarter was 84 percent compared to 94 percent for the second quarter last year with most of the idle time coming in the first two months of the quarter,'' said Mr. Jan Rask, president and CEO.

"As expected, by March all rigs had returned to work and the submersible market in the Gulf of Mexico has continue to strengthen to the point that there are now no `ready stacked' submersibles in the Gulf. Demand for work in more than 2,000 feet of water is strong.'' Arethusa will enhance the deep water capabilities of the Arethusa Neptune by extending its water capabilities from 1,500 feet to 2,500 feet. This will take the unit out of service for about one month during which a top drive unit will be installed.

Results from the second half of fiscal 1995 are expected to improve as all submersibles capable of working in the Gulf are doing so.

Arethusa owns and/or operates a fleet of 14 mobile off-shore drilling rigs, including nine submersibles and five jack-ups. The fleet of submersibles is the third largest in the world and Arethusa is the second largest semisubmersible operator in the Gulf of Mexico.

The balance of the fleet is deployed offshore Brazil, Egypt, Holland, India and Indonesia.