DALLAS, Jan. 29 /PRNewswire-FirstCall/ -- ENSCO International Incorporated
(NYSE: ESV) reported a net loss of $10.7 million ($0.07 per diluted share) on
revenues of $206.8 million for the three months ended December 31, 2002,
compared to net income of $29.9 million ($0.22 per diluted share) on revenues
of $179.1 million for the three months ended December 31, 2001. Included in
the fourth quarter results is a $46.1 million non-cash after tax charge
($0.31 per diluted share) for impairment of the Company's Venezuela assets and
operations due to the ongoing political and economic uncertainty in Venezuela
and the resulting virtual shutdown of industry activity. Excluding this
impairment charge, the Company's net income for the quarter ended December 31,
2002, was $35.4 million ($0.24 per diluted share).
For the year ended December 31, 2002, ENSCO reported net income of
$59.3 million ($0.42 per diluted share) on revenues of $698.1 million,
compared to net income of $207.3 million ($1.50 per diluted share) on revenues
of $817.4 million for the year ended December 31, 2001. Excluding the
impairment charge discussed above, the Company's net income for 2002 was
$105.4 million ($0.75 per diluted share). Included in the Company's full year
2002 results is a $5.8 million gain ($0.03 after tax per diluted share) in
connection with an insurance claim relating to the ENSCO 51 jackup rig that
sustained extensive damage from a natural gas fire in March of 2001 and has
just returned to service after extensive shipyard work.
The average day rate for ENSCO's jackup rig fleet was $48,000 for the
fourth quarter of 2002, compared to $45,500 in the year earlier period, with
day rate improvement realized principally in Asia Pacific. Utilization for
the Company's jackup fleet increased to 86% in the most recent quarter, up
from 77% in the fourth quarter of 2001. Excluding rigs in the shipyard for
regulatory inspection and enhancement, jackup utilization was 93% in the most
recent quarter, compared to 84% in the year earlier period.
In the Company's marine transportation segment, average day rates for the
Company's marine fleet decreased to $6,200 in the fourth quarter of 2002 from
$7,500 in the year earlier period. Utilization for the marine fleet improved
to 81% in the quarter ended December 31, 2002, up from 78% in the fourth
quarter of 2001.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on
the Company's current markets and outlook: "The Pacific Rim and the Middle
East continue to be our strongest markets, with all available rigs working and
day rates stable. In the North Sea, all but one of ENSCO's rigs are working,
with most committed well into 2003. Much of the work in the North Sea remains
short-term and, in the absence of additional term work which may not occur
until later in the year, there could be some near-term softening in the
region. The Gulf of Mexico jackup market remains sluggish. Notwithstanding
this current softness, eighteen of our twenty-two Gulf of Mexico jackup rigs
are working and another rig is committed once its shipyard stay is complete.
"The impairment charge in Venezuela is directly related to the current
nationwide strike and economic upheaval in Venezuela. The oil industry in
Venezuela has been severely impacted by these events, and the timing of an
expected and inevitable recovery of drilling activity is uncertain under the
circumstances. The dismantling of PdVSA, and resulting management
inefficiency, coupled with the recent announcement of currency controls,
evidencing significant economic concerns, and issues relative to funding
recovery efforts, are major considerations relative to timing.
"With regard to our continuing fleet enhancement and renewal program, two
of our jackup rigs in Southeast Asia (ENSCO 52 and ENSCO 57) will have down
time associated with scheduled maintenance and enhancement work during the
first quarter of 2003, with ENSCO 57 extending into the second quarter. No
major enhancement projects are scheduled for our rigs in the North Sea in
2003. In the Gulf of Mexico, one jackup rig (ENSCO 81) is in the shipyard
undergoing a major upgrade and refurbishment and is due to return to service
in February. ENSCO 82 will enter the shipyard next month for major
enhancement, to be followed by the upgrade of at least one of our other large
Gulf of Mexico jackup rigs (ENSCO 68) during the second half of the year. We
also expect to have several of our smaller Gulf of Mexico jackup rigs down for
regulatory and enhancement work over the course of 2003, but plan to have only
one of these smaller rigs in a shipyard at any one time. We continue to
evaluate the possibility of a single, new construction project, but only if it
can be accomplished at an attractive cost, and structured to limit ENSCO's
risk, as with the partial ownership and purchase option we currently enjoy
relative to the ENSCO 102.
"As a result of the continued softness in the Gulf of Mexico market,
possible near term softness in the North Sea, and scheduled shipyard downtime,
we expect our first quarter 2003 earnings per share to be in the range of
$0.16 to $0.21."
Statements contained in this press release that state the Company's or
management's intentions, hopes, beliefs, expectations or predictions of the
future are forward-looking statements. Such forward-looking statements
include references to the number of our rigs that will be in a shipyard, the
"continued softness in the market" and our expectation of first quarter
2003 earnings. It is important to note that the Company's actual results
could differ materially from those projected in such forward-looking
statements. The factors that could cause actual results to differ materially
from those in the forward-looking statements include the following: (i)
industry conditions and competition, (ii) cyclical nature of the industry,
(iii) worldwide expenditures for oil and gas drilling, (iv) operational risks
and insurance, (v) risks associated with operating in foreign jurisdictions,
(vi) environmental liabilities which may arise in the future which are not
covered by insurance or indemnity, (vii) the impact of current and future laws
and government regulation, as well as repeal or modification of same,
affecting the oil and gas industry and the Company's operations in particular,
(viii) changes in the dates the Company's rigs undergoing enhancement will
enter service, (ix) renegotiation, nullification, or breach of contracts with
customers or other parties, (x) political and economic uncertainty in
Venezuela, and (xi) the risks described from time to time in the Company's SEC
filings. Copies of such filings may be obtained by contacting the Company or
the SEC.
ENSCO, headquartered in Dallas, Texas, provides contract drilling and
marine transportation services to the international petroleum industry.
ENSCO will conduct a conference call at 10:00 a.m. Central Time on
Wednesday, January 29, 2003, to discuss its fourth quarter results. The call
will be broadcast live over the Internet at http://www.enscous.com . Parties may
also listen to the call by dialing 952-556-2802. It is recommended that
participants call five to ten minutes before the scheduled start time.
A replay of the conference call will be available on ENSCO's web site
http://www.enscous.com , or by phone for 24 hours after the call by dialing
703-326-3020 (access number 6339437).
ENSCO INTERNATIONAL INCORPORATED
CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share data)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2002 2001 2002 2001
OPERATING REVENUES $206.8 $179.1 $698.1 $817.4
EXPENSES
Operating expenses 112.7 88.7 389.7 358.9
Depreciation and amortization 34.2 28.6 123.8 115.2
Impairment of assets 59.9 9.2 59.9 9.2
General and administrative 4.8 4.9 18.6 16.8
211.6 131.4 592.0 500.1
OPERATING INCOME (LOSS) (4.8) 47.7 106.1 317.3
OTHER INCOME (EXPENSE)
Interest income 0.9 1.7 5.1 8.3
Interest expense, net (7.5) (7.8) (31.1) (32.8)
Other, net 0.6 0.1 7.0 (0.9)
(6.0) (6.0) (19.0) (25.4)
INCOME (LOSS) BEFORE INCOME TAXES (10.8) 41.7 87.1 291.9
PROVISION FOR INCOME TAXES (0.1) 11.8 27.8 84.6
NET INCOME (LOSS) $(10.7) $29.9 $59.3 $207.3
EARNINGS (LOSS) PER SHARE
Basic $(0.07) $0.22 $0.42 $1.51
Diluted $(0.07) $0.22 $0.42 $1.50
AVERAGE COMMON SHARES OUTSTANDING
Basic 149.0 134.3 140.7 136.9
Diluted 149.0 134.9 141.4 137.9
ENSCO INTERNATIONAL INCORPORATED
CONSOLIDATED BALANCE SHEET
(In millions)
December 31, December 31,
2002 2001
ASSETS
CURRENT ASSETS
Cash and short-term investments $185.5 $310.4
Accounts receivable, net 162.8 116.5
Prepaid expenses and other 39.2 34.4
Total current assets 387.5 461.3
PROPERTY AND EQUIPMENT, NET 2,258.0 1,715.3
OTHER ASSETS 416.0 147.2
$3,061.5 $2,323.8
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $176.8 $136.6
Current maturities of long-term debt 21.5 12.7
Total current liabilities 198.3 149.3
LONG-TERM DEBT 547.5 462.4
DEFERRED INCOME TAXES 332.3 259.1
OTHER LIABILITIES 16.4 12.8
STOCKHOLDERS' EQUITY 1,967.0 1,440.2
$3,061.5 $2,323.8
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
Third
Fourth Quarter Quarter
2002 2001 2002
Contract drilling
Average day rates
Jackup rigs
North America $31,379 $30,041 $30,542
Europe 66,591 73,330 78,507
Asia Pacific 60,560 48,850 59,029
South America 78,075 n/a 75,771
Total jackup rigs 48,047 45,523 47,993
Semisubmersible rig - N. America 188,897 184,013 187,048
Barge rigs
Asia Pacific n/a n/a 41,750
South America 39,515 38,663 38,120
Total barge rigs 39,515 38,663 38,658
Platform rigs - North America 26,586 28,782 26,688
Total $50,186 $48,052 $50,290
Utilization
Jackup rigs
North America 83% 66% 87%
Europe 98% 87% 79%
Asia Pacific 83% 100% 76%
South America 100% n/a 100%
Total jackup rigs 86% 77% 83%
Semisubmersible rig - N. America 100% 100% 100%
Barge rigs
Asia Pacific 10% n/a 100%
South America 22% 29% 15%
Total barge rigs 21% 29% 21%
Platform rigs - North America 60% 47% 60%
Total 76% 66% 73%
Marine transportation
Average day rates
AHTS $11,721 $12,641 $14,590
Supply 5,036 6,294 5,180
Total $6,236 $7,482 $6,570
Utilization
AHTS 79% 81% 62%
Supply 82% 77% 77%
Total 81% 78% 75%
ENSCO INTERNATIONAL INCORPORATED
SEGMENT RESULTS
(In millions)
Third
Fourth Quarter Quarter
2002 2001 2002
OPERATING REVENUES
Contract drilling $194.2 $164.1 $179.2
Marine transportation 12.6 15.0 12.6
Total segment revenues 206.8 179.1 191.8
OPERATING EXPENSES
Contract drilling 102.5 78.9 93.5
Marine transportation 10.2 9.8 10.9
Total segment expenses 112.7 88.7 104.4
GROSS MARGINS
Contract drilling 91.7 85.2 85.7
Marine transportation 2.4 5.2 1.7
Total gross margins 94.1 90.4 87.4
DEPRECIATION 34.2 28.6 31.7
IMPAIRMENT OF ASSETS 59.9 9.2 ---
GENERAL AND ADMINISTRATIVE 4.8 4.9 4.8
OPERATING INCOME (LOSS) $(4.8) $47.7 $50.9
SOURCE ENSCO International Incorporated
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Related links:
http://www.enscous.com
CONTACT:
Richard LeBlanc of ENSCO International
Incorporated, +1-214-397-3011
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