DALLAS, April 20 /PRNewswire-FirstCall/ -- ENSCO International
Incorporated (NYSE: ESV) reported net income of $21.0 million ($0.14 per
diluted share) on revenues of $186.5 million for the three months ended
March 31, 2004, compared to net income of $22.9 million ($0.15 per diluted
share) on revenues of $192.9 million for the three months ended
March 31, 2003. Excluding results of discontinued operations, ENSCO's income
from continuing operations was $21.3 million ($0.14 per diluted share) in the
first quarter of 2004, compared to $26.7 million ($0.18 per diluted share) for
the three months ended March 31, 2003. Discontinued operations include the
Company's marine transportation vessels sold in April 2003 and three rigs to
be exchanged in connection with construction of ENSCO 107, a new high-
specification jackup rig, announced in February 2004.
The average day rate for ENSCO's operating jackup rig fleet was $50,200
for the first quarter of 2004, compared to $48,500 in the year earlier period.
Utilization for the Company's jackup fleet decreased slightly to 85% in the
most recent quarter, from 87% in the first quarter of 2003. Excluding rigs in
a shipyard for contract preparation, regulatory inspection and enhancements,
ENSCO's jackup utilization was 91% in the most recent quarter, compared to 95%
in the year earlier period.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on
the Company's outlook and markets: "Activity levels in the Middle East and
Pacific Rim are improving, while the North Sea, West Africa and the Gulf of
Mexico remain sluggish. We continue to expect global activity to be stronger
in the second half of 2004 than in the first half of the year.
"Given anticipated first half softness in some areas, we have elected to
accelerate various undertakings. In May, we will relocate two 250' jackups
from the Gulf of Mexico to the Middle East, where they will undergo
enhancement until late third and early fourth quarter of 2004. ENSCO 67 will
mobilize from the Gulf of Mexico to a shipyard in Singapore for major upgrade,
including conversion from slot to cantilever configuration, with expected
completion in late first quarter 2005. These actions will allow us to take
advantage of strong international term-work opportunities, as well as to
address enhancement cost efficiencies and fleet geographic balance. With the
relocation of three jackups, and the exchange of ENSCO 55 in connection with
the construction of ENSCO 107, domestic supply will be reduced, and
international availability increased, by four ENSCO rigs.
"In addition to the three rigs mentioned above, ENSCO 68 and ENSCO 88 are
currently in a U.S. shipyard with redelivery expected in November and August
of 2004, respectively. Given accelerations and previously planned upgrade
activity, we now expect to incur approximately 40 rig-months of downtime in
connection with our overall jackup rig enhancement program during the
remainder of this year. We have also elected to accelerate regulatory
inspection and maintenance on ENSCO 7500, our deepwater semisubmersible rig,
which will result in shipyard time through May 2004.
"Looking ahead, we expect second quarter 2004 results to be impacted by
the factors mentioned above. While the actions we are taking will have short-
term negative impact on earnings, we believe that these decisions will enhance
intermediate and long-term positioning as the fundamentals of our industry
continue to improve."
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 and contract commitments, the period of time and number
of our rigs that will be in a shipyard, market trends or conditions, market
outlook, and our second quarter 2004 earnings expectation. 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) renegotiation, nullification, or
breach of contracts with customers or other parties, (vii) environmental or
other liabilities which 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) political
and economic uncertainty, (xi) completion of a definitive contract and receipt
of required regulatory approvals for the ENSCO 107 transaction, and (xii)
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 April 20, 2004. 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, provides contract drilling services
to the global petroleum industry.
ENSCO will conduct a conference call at 10:00 a.m. Central Daylight Time
on Tuesday, April 20, 2004, 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 913.981.5558. 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 391546).
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share data)
Three Months Ended
March 31,
2004 2003
OPERATING REVENUES $186.5 $192.9
OPERATING EXPENSES
Contract drilling 107.4 109.5
Depreciation and amortization 35.6 31.8
General and administrative 5.7 5.9
148.7 147.2
OPERATING INCOME 37.8 45.7
OTHER INCOME (EXPENSE)
Interest income 0.8 0.7
Interest expense, net (10.0) (9.2)
Other, net 0.5 0.2
(8.7) (8.3)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 29.1 37.4
PROVISION FOR INCOME TAXES 7.8 10.7
INCOME FROM CONTINUING OPERATIONS 21.3 26.7
DISCONTINUED OPERATIONS (0.3) (3.8)
NET INCOME $21.0 $22.9
EARNINGS (LOSS) PER SHARE - BASIC
Continuing operations $0.14 $0.18
Discontinued operations (0.00) (0.03)
$0.14 $0.15
EARNINGS (LOSS) PER SHARE - DILUTED
Continuing operations $0.14 $0.18
Discontinued operations (0.00) (0.03)
$0.14 $0.15
AVERAGE COMMON SHARES OUTSTANDING
Basic 150.6 149.2
Diluted 150.8 149.9
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
March 31, Dec. 31,
2004 2003
ASSETS
CURRENT ASSETS
Cash and cash equivalents $297.3 $354.0
Accounts receivable, net 151.0 149.4
Prepaid expenses and other 36.4 39.9
Total current assets 484.7 543.3
PROPERTY AND EQUIPMENT, NET 2,306.2 2,217.2
GOODWILL 342.7 342.7
ASSETS OF DISCONTINUED OPERATIONS 40.6 ---
OTHER ASSETS 37.2 79.8
$3,211.4 $3,183.0
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $167.3 $164.4
Current maturities of long-term debt 23.0 23.0
Total current liabilities 190.3 187.4
LONG-TERM DEBT 547.1 549.9
DEFERRED INCOME TAXES 337.0 345.9
LIABILITIES OF DISCONTINUED OPERATIONS 14.1 ---
OTHER LIABILITIES 17.7 18.7
STOCKHOLDERS' EQUITY 2,105.2 2,081.1
$3,211.4 $3,183.0
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
Three Months Ended
March 31,
2004 2003
OPERATING ACTIVITIES
Net income $21.0 $22.9
Adjustments to reconcile net
income to net cash provided
by operating activities of
continuing operations:
Depreciation and amortization 35.6 31.8
Changes in working capital and other 13.6 16.0
Net cash provided by operating
activities of continuing operations 70.2 70.7
INVESTING ACTIVITIES
Additions to property and equipment (125.6) (53.3)
Other 0.3 1.9
Net cash used in investing activities
of continuing operations (125.3) (51.4)
FINANCING ACTIVITIES
Reduction of long-term borrowings (2.9) (2.9)
Cash dividends paid (3.7) (3.7)
Other 4.8 2.0
Net cash used in financing activities
of continuing operations (1.8) (4.6)
EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH
AND CASH EQUIVALENTS (0.5) (0.2)
NET CASH PROVIDED BY (USED IN) DISCONTINUED
OPERATIONS 0.7 (2.7)
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (56.7) 11.8
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 354.0 147.1
CASH AND CASH EQUIVALENTS, END OF PERIOD $297.3 $158.9
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
Fourth
First Quarter Quarter
2004 2003 2003
*Contract drilling
Average day rates
Jackup rigs
North America $38,964 $27,960 $38,114
Europe / Africa 56,506 71,724 56,107
Asia Pacific 63,931 63,154 63,812
South America / Caribbean 89,637 80,087 89,228
Total jackup rigs 50,166 48,474 49,368
Semisubmersible rig - N. America 184,815 188,336 187,197
Barge rigs
Asia Pacific 41,788 41,321 41,788
South America / Caribbean 41,900 36,401 38,396
Total barge rigs 41,845 38,731 39,601
Platform rigs - North America 28,486 26,129 25,957
Total $51,481 $50,285 $51,039
Utilization
Jackup rigs
North America 87% 83% 88%
Europe / Africa 91% 91% 94%
Asia Pacific 76% 89% 68%
South America / Caribbean 98% 100% 100%
Total jackup rigs 85% 87% 83%
Semisubmersible rig - N. America 66% 97% 92%
Barge rigs
Asia Pacific 100% 99% 100%
South America / Caribbean 17% 17% 30%
Total barge rigs 29% 28% 40%
Platform rigs - North America 33% 84% 53%
Total 74% 79% 76%
* Excludes operating statistics for rigs whose results are reported
in Discontinued Operations
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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