DALLAS, April 26 /PRNewswire-FirstCall/ -- ENSCO International
Incorporated (NYSE: ESV) reported net income of $41.8 million ($0.28 per
diluted share) on revenues of $217.0 million for the three months ended
March 31, 2005, as compared to 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.
Included in first quarter 2005 results is other income (non-recurring) of
$3.1 million ($2.2 million after tax, or $0.01 per diluted share) related to
the resolution of insurance claims associated with two rigs (jackup rig ENSCO
64 and platform rig ENSCO 25) damaged by Hurricane Ivan. Additionally, as
previously reported, the Company expects to recognize an after-tax gain of
approximately $8 million during the second quarter of 2005 upon receipt of
$65 million of insurance proceeds related to the ENSCO 64 loss.
The average day rate for ENSCO's operating jackup rig fleet was $60,000 in
the first quarter of 2005, compared to $50,200 in the prior year quarter.
Utilization of the Company's jackup fleet was 85% in the most recent quarter,
unchanged from the prior year. Excluding rigs in a shipyard for contract
preparation, regulatory inspection, and repair and enhancement, ENSCO's jackup
utilization was 93% in the most recent quarter, compared to 91% in the year
earlier period.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on
the Company's outlook and markets: "We continue to see improvement in all of
our major markets. As we observed earlier this year, our markets were
expected to be in balance by mid-year. That point of global equilibrium with
regard to jackups appears to be materializing earlier than anticipated, and
day rates have responded accordingly.
"Two of our Gulf of Mexico jackups, ENSCO 89 and ENSCO 99, are currently
in shipyards undergoing enhancement and life extension work, with redelivery
scheduled for late July and early May, respectively. One of our Asia Pacific
jackups, ENSCO 67, remains in a Singapore shipyard for major enhancement, with
redelivery anticipated in July 2005. ENSCO 76 is in a Gulf of Mexico shipyard
undergoing minor modifications in preparation for its contract in Saudi
Arabia, which is expected to commence in August 2005. Only one major rig
enhancement project, ENSCO 87, and one life extension upgrade, ENSCO 86,
remain on our agenda for this year. Upon completion of this activity,
anticipated by the end of 2005, we will have substantially concluded our
enhancement program, and consequently expect improvement in fleet utilization.
"Construction of ENSCO 107, a KFELS Mod V-B ultra-high specification
jackup rig continues, with delivery anticipated by year-end. As previously
announced, we have entered into an agreement to build the ENSCO 108, also a
KFELS Mod V-B jackup, with completion of that rig expected during the first
quarter of 2007. The ENSCO 108 will be a replacement for ENSCO 64.
"We remain positive relative to our prospects for the remainder of this
year and beyond, particularly in light of the fact that we are nearing
completion of our fleet renewal program, and the expanding opportunities we
see for the enhanced fleet."
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 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) 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)
availability of transport vessels to relocate rigs, (xi) political and
economic uncertainty, (xii) the actual amount and timing of receipt of ENSCO
64 insurance proceeds and the expected gain to be recognized in connection
with the insurance recovery on the rigs impacted by Hurricane Ivan, 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 April 26, 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 Daylight Time
on Tuesday April 26, 2005, to discuss its first quarter 2005 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 3774278).
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share data)
Three Months Ended
March 31,
2005 2004
OPERATING REVENUES $217.0 $186.5
OPERATING EXPENSES
Contract drilling 111.4 107.4
Depreciation and amortization 38.3 35.6
General and administrative 6.2 5.7
155.9 148.7
OPERATING INCOME 61.1 37.8
OTHER INCOME (EXPENSE)
Interest income 1.1 0.8
Interest expense, net (7.8) (10.0)
Other, net 4.3 0.5
(2.4) (8.7)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 58.7 29.1
PROVISION FOR INCOME TAXES 16.9 7.8
INCOME FROM CONTINUING OPERATIONS 41.8 21.3
LOSS FROM DISCONTINUED OPERATIONS --- (0.3)
NET INCOME $41.8 $21.0
EARNINGS PER SHARE - BASIC
Continuing operations $0.28 $0.14
Discontinued operations --- ---
$0.28 $0.14
EARNINGS PER SHARE - DILUTED
Continuing operations $0.28 $0.14
Discontinued operations --- ---
$0.28 $0.14
AVERAGE COMMON SHARES OUTSTANDING
Basic 150.9 150.6
Diluted 151.5 150.8
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
March 31, Dec. 31,
2005 2004
ASSETS
CURRENT ASSETS
Cash and cash equivalents $230.7 $267.0
Accounts receivable, net 178.2 183.0
Prepaid expenses and other 45.0 43.7
Total current assets 453.9 493.7
PROPERTY AND EQUIPMENT, NET 2,558.9 2,431.3
GOODWILL 336.2 341.0
OTHER ASSETS 32.0 56.0
$3,381.0 $3,322.0
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $203.8 $192.8
Current maturities of long-term debt 23.0 23.0
Total current liabilities 226.8 215.8
LONG-TERM DEBT 524.3 527.1
DEFERRED INCOME TAXES 371.6 375.3
OTHER LIABILITIES 18.9 21.9
STOCKHOLDERS' EQUITY 2,239.4 2,181.9
$3,381.0 $3,322.0
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
Three Months Ended
March 31,
2005 2004
OPERATING ACTIVITIES
Net income $41.8 $21.0
Adjustments to reconcile net income to net
cash provided by operating activities of
continuing operations:
Depreciation and amortization 38.3 35.6
Changes in working capital and other 20.8 13.6
Net cash provided by operating
activities of continuing operations 100.9 70.2
INVESTING ACTIVITIES
Additions to property and equipment (146.6) (125.6)
Other (1.8) 0.3
Net cash used in investing
activities of continuing
operations (148.4) (125.3)
FINANCING ACTIVITIES
Reduction of long-term borrowings (2.9) (2.9)
Cash dividends paid (3.8) (3.7)
Proceeds from exercise of stock options 19.0 4.8
Other (0.1) ---
Net cash (used in) provided by financing
activities of continuing operations 12.2 (1.8)
Effect of exchange rate fluctuations on cash
and cash equivalents (1.0) (0.5)
Net cash provided by discontinued operations --- 0.7
DECREASE IN CASH AND CASH EQUIVALENTS (36.3) (56.7)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 267.0 354.0
CASH AND CASH EQUIVALENTS, END OF PERIOD $230.7 $297.3
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
Fourth
First Quarter Quarter
2005 2004 2004
Contract drilling
Average day rates
Jackup rigs
North America $53,690 $38,964 $48,352
Europe / Africa 64,501 56,506 61,779
Asia Pacific 64,645 63,931 63,875
South America / Caribbean 77,589 89,637 82,062
Total jackup rigs 59,963 50,166 57,501
Semisubmersible rig - N. America 122,618 184,815 97,727
Barge rigs
Asia Pacific 50,031 41,788 51,758
South America / Caribbean 34,794 41,900 34,351
Total barge rigs 40,875 41,845 43,608
Platform rigs - North America 27,525 28,486 na
Total $59,362 $51,481 $57,879
Utilization
Jackup rigs
North America 84% 87% 81%
Europe / Africa 87% 91% 93%
Asia Pacific 85% 76% 83%
South America / Caribbean 100% 98% 100%
Total jackup rigs 85% 85% 84%
Semisubmersible rig - N. America 69% 66% 100%
Barge rigs
Asia Pacific 99% 100% 100%
South America / Caribbean 25% 17% 15%
Total barge rigs 35% 29% 27%
Platform rigs - North America 65% 33% 62%
Total 77% 74% 76%
SOURCE ENSCO International Incorporated
 back to top
Related links:
http://www.enscous.com
CONTACT:
Richard LeBlanc of ENSCO International
Incorporated, +1-214-397-3011
|
