DALLAS, Feb. 23 /PRNewswire-FirstCall/ -- ENSCO International Incorporated
(NYSE: ESV) reported net income of $38.5 million ($0.26 per diluted share) on
revenues of $209.2 million for the three months ended December 31, 2004,
compared to net income of $26.5 million ($0.18 per diluted share) on revenues
of $196.7 million for the three months ended December 31, 2003.
ENSCO's net income was $102.8 million ($0.68 per diluted share) on
revenues of $768.0 million for the year ended December 31, 2004, compared to
net income of $108.3 million ($0.72 per diluted share) on revenues of
$781.2 million for the year ended December 31, 2003.
The average day rate for ENSCO's jackup rig fleet was $57,500 for the
fourth quarter of 2004, compared to $49,400 in the prior year quarter.
Utilization for the Company's jackup fleet increased slightly to 84% in the
most recent quarter, up from 83% in the fourth quarter of 2003. Excluding
rigs in a shipyard for contract preparation, regulatory inspection, repair and
enhancement, ENSCO's jackup utilization was 94% in the most recent quarter,
compared to 90% in the prior year quarter.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on
the Company's outlook and markets: "As we begin 2005, we see continuing
strength in the offshore drilling market. We are experiencing improvement in
rate structure, and increased contract backlog on a global basis. Our Asia
and Pacific Rim market is showing particular strength. Two of our jackup rigs
recently secured long-term commitments in Saudi Arabia, at rates significantly
improved over prior commitments.
"Rate structures are improving in Europe & Africa, with recent fixtures
for standard North Sea jackup work in the range of $70,000 to $75,000 per day.
As anticipated, several of our jackup rigs in the region will experience
downtime during the first half of 2005 as they undergo regulatory inspection,
upgrade and repair, and/or await commencement of new commitments. This could
result in approximately 100 idle rig days in the first quarter. We currently
expect all of our Europe & Africa rigs to be in service by the middle of the
second quarter, with most of the rigs committed well into the second half of
2005.
"Rate structures for our Gulf of Mexico fleet continue to show
improvement. Three of our 250' water depth capable jackup rigs are now
committed at approximately $50,000 per day, and leading edge day rates for
higher specification jackups are approximately $70,000. We have continuing
commitments for our deepwater semisubmersible rig, ENSCO 7500, with rates
increasing to approximately $160,000 per day in the second quarter, and
approximately $185,000 by the third quarter, when the rig will commence a two-
year contract.
"We continue to make good progress with our fleet renewal program, and
anticipate substantial completion by the end of 2005. We have one major
enhancement project, ENSCO 67, now underway in Singapore, with re-delivery of
the rig currently expected in June 2005, whereupon the rig is contractually
committed. Two of our Gulf of Mexico jackups, ENSCO 84 and ENSCO 99, are
currently in a shipyard for life extension and enhancement, with estimated
work completion in late February and late April, respectively. Only one major
upgrade (ENSCO 87 commencing in March) and two minor projects (ENSCO 89
commencing in April and ENSCO 86 commencing in July) remain relative to our
Gulf of Mexico fleet in 2005. ENSCO 64, which was severely damaged during
Hurricane Ivan last September, remains in a shipyard pending completion of
damage assessment, which will determine whether the rig will be declared a
constructive total loss. One of our platform rigs, ENSCO 25, which also
sustained damage during the hurricane, is currently expected to return to
service by the end of this month.
"We are pleased with developments as we close 2004 and enter 2005, and are
positive regarding our prospects for the remainder of this year."
Statements contained in this news release that state the Company's or
management's intentions, hopes, beliefs, expectations, anticipations or
predictions of the future are forward-looking statements made pursuant to the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements include references to any trends in day rates or utilization,
future rig utilization, deployment and contract commitments, the period of
time and number of rigs that will be in a shipyard, and market trends,
outlook, or conditions. 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,
(v) risks associated with operating in foreign jurisdictions, (vi) delay of
commencement, renegotiation, nullification, or breach of contracts with
customers or other parties, (vii) environmental or other liabilities that may
arise in the future which are not covered by insurance or indemnity, (viii)
the impact of current and future laws and government regulation, as well as
repeal or modification of same, affecting the oil and gas industry in general
and the Company's operations in particular, (ix) changes in the dates the
Company's rigs undergoing shipyard work or enhancement will enter a shipyard
or return to service, (x) the determination whether the ENSCO 64 will be
repaired or declared a constructive total loss, (xi) availability of transport
vessels to relocate rigs, (xii) political and economic uncertainty, and (xiii)
other risks described from time to time in the Company's SEC filings. Copies
of such filings may be obtained at no charge by contacting the Company's
investor relations department at 214-397-3045 or by referring to the investor
relations section of the Company's website at http://www.enscous.com .
All information in this press release is as of February 23, 2005. The
Company undertakes no duty to update any forward-looking statement, to conform
the statement to actual results, or reflect changes in the Company's
expectations.
ENSCO, headquartered in Dallas, Texas, owns and operates a modern fleet of
offshore drilling rigs servicing the petroleum industry on a global basis.
ENSCO will conduct a conference call at 10:00 a.m. Central Time on
Wednesday, February 23, 2005, to discuss its fourth quarter and full year 2004
results. The call will be broadcast live over the Internet at
http://www.enscous.com . Interested parties also may listen to the call by dialing
913.981.5543. We recommend 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
719.457.0820 (access number 3695814).
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share data)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2004 2003 2004 2003
OPERATING REVENUES $209.2 $196.7 $768.0 $781.2
OPERATING EXPENSES
Contract drilling 105.7 113.9 425.5 445.2
Depreciation and amortization 36.5 33.2 144.1 130.2
General and administrative 6.4 6.1 26.3 22.0
148.6 153.2 595.9 597.4
OPERATING INCOME 60.6 43.5 172.1 183.8
OTHER INCOME (EXPENSE)
Interest income 1.2 0.9 3.7 3.4
Interest expense, net (8.2) (9.5) (36.6) (36.7)
Other, net --- 2.1 0.3 1.7
(7.0) (6.5) (32.6) (31.6)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 53.6 37.0 139.5 152.2
PROVISION FOR INCOME TAXES 15.1 10.2 36.0 43.1
INCOME FROM CONTINUING OPERATIONS 38.5 26.8 103.5 109.1
DISCONTINUED OPERATIONS --- (0.3) (0.7) (0.8)
NET INCOME $38.5 $26.5 $102.8 $108.3
EARNINGS (LOSS) PER SHARE - BASIC
Continuing operations $0.26 $0.18 $0.69 $0.73
Discontinued operations --- (0.00) (0.01) (0.01)
$0.26 $0.18 $0.68 $0.72
EARNINGS (LOSS) PER SHARE - DILUTED
Continuing operations $0.26 $0.18 $0.69 $0.73
Discontinued operations --- (0.00) (0.01) (0.01)
$0.26 $0.18 $0.68 $0.72
AVERAGE COMMON SHARES OUTSTANDING
Basic 150.6 150.0 150.5 149.6
Diluted 150.9 150.3 150.6 150.1
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
December 31, December 31,
2004 2003
ASSETS
CURRENT ASSETS
Cash and cash equivalents $267.0 $354.0
Accounts receivable, net 183.0 149.4
Prepaid expenses and other 43.7 39.9
Total current assets 493.7 543.3
PROPERTY AND EQUIPMENT, NET 2,431.3 2,217.2
GOODWILL 341.0 342.7
OTHER ASSETS 56.0 79.8
$3,322.0 $3,183.0
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $192.8 $164.4
Current maturities of long-term debt 23.0 23.0
Total current liabilities 215.8 187.4
LONG-TERM DEBT 527.1 549.9
DEFERRED INCOME TAXES 375.3 345.9
OTHER LIABILITIES 21.9 18.7
STOCKHOLDERS' EQUITY 2,181.9 2,081.1
$3,322.0 $3,183.0
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
Twelve Months Ended
December 31,
2004 2003
OPERATING ACTIVITIES
Net income $102.8 $108.3
Adjustments to reconcile net income
to net cash provided by operating
activities of continuing operations:
Depreciation and amortization 144.1 130.2
Changes in working capital and other 11.5 52.1
Net cash provided by operating
activities of continuing operations 258.4 290.6
INVESTING ACTIVITIES
Additions to property and equipment (304.6) (186.1)
Net proceeds from sale of
discontinued operations --- 78.8
Other (8.2) 30.1
Net cash used in investing activities
of continuing operations (312.8) (77.2)
FINANCING ACTIVITIES
Proceeds from long-term borrowings --- 26.7
Reduction of long-term borrowings (23.0) (23.0)
Cash dividends paid (15.1) (15.0)
Other 7.4 5.9
Net cash used in financing activities
of continuing operations (30.7) (5.4)
EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH
AND CASH EQUIVALENTS (2.0) 0.9
NET CASH PROVIDED BY (USED IN) DISCONTINUED
OPERATIONS 0.1 (2.0)
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (87.0) 206.9
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 354.0 147.1
CASH AND CASH EQUIVALENTS, END OF PERIOD $267.0 $354.0
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
Third
Fourth Quarter Quarter
2004 2003 2004
Contract drilling
Average day rates
Jackup rigs
North America $48,352 $38,114 $43,001
Europe / Africa 61,779 56,107 62,767
Asia Pacific 63,875 63,812 63,355
South America / Caribbean 82,062 89,228 88,791
Total jackup rigs 57,501 49,368 54,751
Semisubmersible rig - N. America 97,727 187,197 86,605
Barge rigs
Asia Pacific 51,758 41,788 51,777
South America / Caribbean 34,351 38,396 na
Total barge rigs 43,608 39,601 51,777
Platform rigs - North America na 25,957 30,384
Total $57,879 $51,039 $54,414
Utilization
Jackup rigs
North America 81% 88% 83%
Europe / Africa 93% 94% 77%
Asia Pacific 83% 68% 83%
South America / Caribbean 100% 100% 100%
Total jackup rigs 84% 83% 82%
Semisubmersible rig - N. America 100% 92% 36%
Barge rigs
Asia Pacific 100% 100% 100%
South America / Caribbean 15% 30% 0%
Total barge rigs 27% 40% 14%
Platform rigs - North America 62% 53% 33%
Total 76% 76% 70%
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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