DALLAS, April 16 /PRNewswire-FirstCall/ -- ENSCO International
Incorporated (NYSE: ESV) reported net income of $22.9 million ($0.15 per
diluted share) on revenues of $195.1 million for the three months ended
March 31, 2003, compared to net income of $16.2 million ($0.12 per diluted
share) on revenues of $130.0 million for the three months ended
March 31, 2002. Included in the first quarter 2003 results is a loss from
discontinued operations of $3.3 million ($0.02 per diluted share) related to
the Company's marine transportation segment. The sale of the Company's
27 oilfield support vessels, which comprised the marine transportation
segment, was completed on April 1, 2003. The Company expects to report an
after tax gain of approximately $0.02 per diluted share from the sale of the
marine vessel fleet in the second quarter of 2003. Income from continuing
operations for the three months ended March 31, 2003, was $26.2 million
($0.17 per diluted share) compared to $14.9 million ($0.11 per diluted share)
in the year earlier quarter.
The average day rate for ENSCO's jackup rig fleet was $47,800 for the
first quarter of 2003, compared to $41,500 in the year earlier period.
Utilization for the Company's jackup fleet increased to 87% in the most recent
quarter, up from 82% in the first quarter of 2002. Excluding rigs in the
shipyard for regulatory, inspection and enhancement considerations, jackup
utilization was 95% in the most recent quarter, compared to 92% in the year
earlier period.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on
the Company's current markets and outlook: "We are beginning to see some
improvement in the Gulf of Mexico jackup market with all of our available rigs
committed, but we expect that any meaningful increase in day rates will likely
be deferred until the second half of the year. The North Sea jackup market is
sluggish, with very little term work now being bid, and day rates are
beginning to soften. All but two of our Europe/West Africa jackup rigs are
committed into the second half of 2003. Notwithstanding the fact that we have
one available rig in Australia between jobs, Asia Pacific appears to remain
firm, in terms of both utilization and day rates.
"With respect to our continuing fleet enhancement and renewal program,
ENSCO 57 in Asia Pacific and ENSCO 92 in Europe/West Africa are currently in
shipyards for scheduled maintenance and enhancement work, with ENSCO 57 due to
be completed in August and ENSCO 92, which is committed upon completion, due
out in May. In North America, ENSCO 82 entered a shipyard in February for a
major upgrade, with expected completion early in the fourth quarter of 2003.
We anticipate that one additional rig, ENSCO 68, will enter a shipyard for a
major enhancement in late 2003. In addition to major shipyard projects, we
continue life extension and regulatory activity relative to our smaller Gulf
of Mexico rigs, with three to four months duration planned for each project.
In this regard, ENSCO 98 is presently in a shipyard, scheduled for completion
in May, and ENSCO 60 and ENSCO 55 are scheduled sequentially later in 2003.
"Given current market softness in the North Sea, limited improvement in
Gulf of Mexico day rates, and scheduled shipyard downtime, we expect second
quarter 2003 income from continuing operations, which excludes the gain on the
marine vessel sale discussed herein, to be little changed from income from
continuing operations of $0.17 per diluted share in the first quarter."
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 any meaningful increase in day rates in the Gulf of
Mexico, utilization for our rigs, the number of our rigs that will be in a
shipyard, market conditions, and our expectation of second 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 or other 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 in general 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 elsewhere, 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's investor relations department at 214-397-3045 or
the Company's investor relations website at http://www.enscous.com .
All information in this press release is as of April 16, 2003. The
Company undertakes no duty to update any forward-looking statement to conform
the statement to actual results or changes in the Company's expectations.
ENSCO, headquartered in Dallas, Texas, provides contract drilling services
to the global petroleum industry.
ENSCO will conduct a conference call at 10:00 a.m. Central Daylight Time
on Wednesday, April 16, 2003, to discuss its first 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 6410857).
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share data)
Three Months Ended
March 31,
2003 2002
OPERATING REVENUES $195.1 $130.0
OPERATING EXPENSES
Contract drilling 111.2 78.8
Depreciation and amortization 33.0 26.9
General and administrative 5.9 4.4
150.1 110.1
OPERATING INCOME 45.0 19.9
OTHER INCOME (EXPENSE)
Interest income 0.7 1.5
Interest expense, net (9.2) (7.8)
Other, net 0.2 8.2
(8.3) 1.9
INCOME BEFORE INCOME TAXES 36.7 21.8
PROVISION FOR INCOME TAXES 10.5 6.9
INCOME FROM CONTINUING OPERATIONS 26.2 14.9
DISCONTINUED OPERATIONS (3.3) 1.3
NET INCOME $22.9 $16.2
EARNINGS PER SHARE - BASIC
Continuing operations $0.17 $0.11
Discontinued operations (0.02) 0.01
$0.15 $0.12
EARNINGS PER SHARE - DILUTED
Continuing operations $0.17 $0.11
Discontinued operations (0.02) 0.01
$0.15 $0.12
AVERAGE COMMON SHARES OUTSTANDING
Basic 149.2 134.7
Diluted 149.9 135.4
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
March 31, December 31,
2003 2002
ASSETS
CURRENT ASSETS
Cash and cash equivalents $158.9 $147.1
Short-term investments 37.1 38.4
Accounts receivable, net 174.9 162.8
Prepaid expenses and other 36.5 39.2
Assets of discontinued operations 6.2 ---
Total current assets 413.6 387.5
PROPERTY AND EQUIPMENT, NET 2,206.7 2,258.0
OTHER ASSETS
Assets of discontinued operations 68.1 ---
Other, net 414.8 416.0
Total other assets 482.9 416.0
$3,103.2 $3,061.5
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $190.5 $176.8
Current maturities of long-term debt 21.5 21.5
Total current liabilities 212.0 198.3
LONG-TERM DEBT 544.7 547.5
DEFERRED INCOME TAXES 312.8 332.3
LIABILITIES OF DISCONTINUED OPERATIONS 27.2 ---
OTHER LIABILITIES 16.3 16.4
STOCKHOLDERS' EQUITY 1,990.2 1,967.0
$3,103.2 $3,061.5
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
Three Months Ended
March 31,
2003 2002
OPERATING ACTIVITIES
Net income $22.9 $16.2
Adjustments to reconcile net income to
net cash provided by operating activities
of continuing operations:
Depreciation and amortization 33.0 26.9
(Income) loss from discontinued operations 3.3 (1.3)
Changes in working capital and other 11.8 (0.6)
Net cash provided by operating
activities of continuing operations 71.0 41.2
INVESTING ACTIVITIES
Additions to property and equipment (53.3) (40.2)
Proceeds from disposition of assets 0.6 23.7
Sale of investments 1.3 14.7
Net cash used in investing activities
of continuing operations (51.4) (1.8)
FINANCING ACTIVITIES
Cash dividends paid (3.7) (3.4)
Other (0.9) 2.4
Net cash used in financing activities
of continuing operations (4.6) (1.0)
NET CASH (USED IN) PROVIDED BY DISCONTINUED
OPERATIONS (3.2) 1.6
INCREASE IN CASH AND CASH EQUIVALENTS 11.8 40.0
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD 147.1 278.8
CASH AND CASH EQUIVALENTS, END OF PERIOD $158.9 $318.8
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
Fourth
First Quarter Quarter
2003 2002 2002
Contract drilling
Average day rates
Jackup rigs
North America $27,793 $21,481 $31,379
Europe/West Africa 71,724 76,961 66,591
Asia Pacific 63,154 58,335 60,560
South America/Caribbean 80,087 n/a 78,075
Total jackup rigs 47,833 41,522 48,047
Semisubmersible rig - N. America 188,336 183,532 188,897
Barge rigs
Asia Pacific 41,321 n/a n/a
South America/Caribbean 36,401 42,706 39,515
Total barge rigs 38,731 42,706 39,515
Platform rigs - North America 26,129 25,460 26,586
Total $49,675 $43,712 $50,186
Utilization
Jackup rigs
North America 84% 86% 83%
Europe/West Africa 91% 69% 98%
Asia Pacific 89% 82% 83%
South America/Caribbean 100% n/a 100%
Total jackup rigs 87% 82% 86%
Semisubmersible rig - N. America 97% 69% 100%
Barge rigs
Asia Pacific 99% n/a 10%
South America/Caribbean 17% 16% 22%
Total barge rigs 28% 16% 21%
Platform rigs - North America 51% 48% 60%
Total 77% 69% 76%
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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