DALLAS, July 17 /PRNewswire-FirstCall/ -- ENSCO International Incorporated
(NYSE: ESV) reported net income of $31.1 million ($0.21 per diluted share) on
revenues of $196.9 million for the three months ended June 30, 2003, compared
to net income of $23.3 million ($0.17 per diluted share) on revenues of
$146.1 million for the three months ended June 30, 2002. The second quarter
2003 results include income from discontinued operations of $4.2 million
($0.03 per diluted share) related to the gain on the sale of the Company's
marine transportation fleet which was completed on April 1, 2003. Income from
continuing operations for the three months ended June 30, 2003, was
$26.9 million ($0.18 per diluted share) compared to $22.5 million ($0.16 per
diluted share) in the year earlier quarter.
ENSCO's net income for the first six months of 2003 was $54.0 million
($0.36 per diluted share) on revenues of $392.0 million, compared to net
income of $39.5 million ($0.29 per diluted share) on revenues of
$276.1 million for the prior year's first six month period. The six month
period results of 2003 include income from discontinued operations of
$0.9 million ($0.01 per diluted share) related to the Company's marine
transportation segment. Income from continuing operations for the six months
ended June 30, 2003, was $53.1 million ($0.35 per diluted share) compared to
$37.4 million ($0.27 per diluted share) in the year earlier six month period.
The average day rate for ENSCO's active jackup rig fleet was $46,900 for
the second quarter of 2003, compared to $42,100 in the year earlier quarter.
Utilization for the Company's jackup fleet increased to 88% in the most recent
quarter, up from 85% in the second quarter of 2002. Excluding rigs in a
shipyard for regulatory, inspection, and enhancement initiatives, jackup
utilization was 96% in the most recent quarter, compared to 94% in the year
earlier period.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on
the Company's current markets and outlook: "Gulf of Mexico jackup rig demand
is little changed over the last several months, with supply continuing to
decrease as some rigs depart for international service. We are beginning to
see some improvement in the Gulf of Mexico jackup day rates, although this
primarily applies to the larger, more capable jackup rigs. The North Sea
jackup market is sluggish, with little term work now being bid, and day rates
are beginning to soften. Two of our Europe/Africa jackup rigs may have some
available time during the third quarter before commencing new contract
commitments, with the remainder of our fleet in that jurisdiction committed
into the fourth quarter of 2003. Asia Pacific remains firm, in terms of both
utilization and day rates, with a good level of additional bid activity.
"With respect to our continuing fleet renewal program, in North America,
ENSCO 82 remains in a shipyard for major upgrade, with expected completion
early in the fourth quarter. ENSCO 68 will enter a shipyard for major
enhancement in late 2003. With respect to more limited projects, ENSCO 60 is
now in a shipyard until late in the year, and ENSCO 55 is scheduled to follow.
In Asia Pacific, ENSCO 57 is currently in a shipyard and due for delivery in
August. During the third quarter, ENSCO 97 will also be in a shipyard for
approximately 30 days.
"Given expected market softness in the North Sea over the remainder of
2003, muted improvement in Gulf of Mexico day rates, and scheduled shipyard
downtime, we expect third quarter 2003 income from continuing operations to be
little changed from the $0.18 per diluted share realized in the second quarter
of 2003."
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. Such forward-
looking statements include references to any trends in day rates or
utilization, future utilization for our rigs, the number of our rigs that will
be in a shipyard, market conditions and our third quarter 2003 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)
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) renegotiation, nullification, or breach of contracts with
customers or other parties, (ix) changes in the dates the Company's rigs
undergoing shipyard work or enhancement will enter service, (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 at no charge by contacting the Company's investor relations
department at 214-397-3045 or the investor relations section of the Company's
website at http://www.enscous.com .
All information in this press release is as of July 17, 2003. 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 publicly accessible conference call at 10:00 a.m.
Central Daylight Time on Thursday, July 17, 2003, to discuss its second
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
952-556-2870. 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, for 24 hours after the call, by phone at 703-326-3020
(access number 166706).
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
OPERATING REVENUES $196.9 $146.1 $392.0 $276.1
OPERATING EXPENSES
Contract drilling 111.1 74.1 222.3 152.9
Depreciation and amortization 33.9 27.8 66.9 54.7
General and administrative 4.8 4.6 10.7 9.0
149.8 106.5 299.9 216.6
OPERATING INCOME 47.1 39.6 92.1 59.5
OTHER INCOME (EXPENSE)
Interest income 0.9 1.6 1.6 3.1
Interest expense, net (9.1) (8.1) (18.3) (15.9)
Other, net (1.4) --- (1.2) 8.2
(9.6) (6.5) (17.9) (4.6)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 37.5 33.1 74.2 54.9
PROVISION FOR INCOME TAXES 10.6 10.6 21.1 17.5
INCOME FROM CONTINUING OPERATIONS 26.9 22.5 53.1 37.4
DISCONTINUED OPERATIONS 4.2 0.8 0.9 2.1
NET INCOME $31.1 $23.3 $54.0 $39.5
EARNINGS PER SHARE - BASIC
Continuing operations $0.18 $0.16 $0.35 $0.27
Discontinued operations 0.03 0.01 0.01 0.02
$0.21 $0.17 $0.36 $0.29
EARNINGS PER SHARE - DILUTED
Continuing operations $0.18 $0.16 $0.35 $0.27
Discontinued operations 0.03 0.01 0.01 0.02
$0.21 $0.17 $0.36 $0.29
AVERAGE COMMON SHARES OUTSTANDING
Basic 149.5 135.3 149.4 135.0
Diluted 150.1 136.2 149.9 135.8
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
June 30, December 31,
2003 2002
ASSETS
CURRENT ASSETS
Cash and cash equivalents $262.2 $147.1
Short-term investments 9.0 38.4
Accounts receivable, net 166.1 162.8
Prepaid expenses and other 36.6 39.2
Total current assets 473.9 387.5
PROPERTY AND EQUIPMENT, NET 2,218.6 2,258.0
OTHER ASSETS
Goodwill 350.5 350.2
Other, net 66.6 65.8
Total other assets 417.1 416.0
$3,109.6 $3,061.5
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued
liabilities $189.5 $176.8
Current maturities of long-term debt 21.5 21.5
Total current liabilities 211.0 198.3
LONG-TERM DEBT 536.1 547.5
DEFERRED INCOME TAXES 324.7 332.3
OTHER LIABILITIES 15.8 16.4
STOCKHOLDERS' EQUITY 2,022.0 1,967.0
$3,109.6 $3,061.5
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
Six Months Ended
June 30,
2003 2002
OPERATING ACTIVITIES
Net income $54.0 $39.5
Adjustments to reconcile net
income to net cash provided
by operating activities of
continuing operations:
Depreciation and amortization 66.9 54.7
Discontinued operations (0.9) (2.1)
Changes in working capital and
other 5.8 (11.4)
Net cash provided by
operating activities of
continuing operations 125.8 80.7
INVESTING ACTIVITIES
Additions to property and
equipment (100.6) (91.4)
Net proceeds from sale of
discontinued business 78.8 ---
Proceeds from disposition of
assets 1.6 24.0
Sale of investments 29.4 14.9
Other (2.6) ---
Net cash (used in) provided
by investing activities of
continuing operations 6.6 (52.5)
FINANCING ACTIVITIES
Reduction of long-term borrowings (11.5) (6.3)
Cash dividends paid (7.5) (6.8)
Proceeds from exercise of stock options 5.9 16.0
Other (0.6) (1.0)
Net cash (used in) provided
by financing activities of
continuing operations (13.7) 1.9
NET CASH USED IN DISCONTINUED OPERATIONS (3.6) (2.1)
INCREASE IN CASH AND CASH EQUIVALENTS 115.1 28.0
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 147.1 278.8
CASH AND CASH EQUIVALENTS, END OF PERIOD $262.2 $306.8
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
First
Second Quarter Quarter
2003 2002 2003
Contract drilling
Average day rates
Jackup rigs
North America $27,798 $22,864 $27,793
Europe 69,786 79,406 71,724
Asia Pacific 62,791 56,802 63,154
South America 86,104 n/a 80,087
Total jackup rigs 46,911 42,061 47,833
Semisubmersible rig - N. America 188,346 182,305 188,336
Barge rigs
Asia Pacific 40,239 n/a 41,321
South America 41,368 39,792 36,401
Total barge rigs 40,816 39,792 38,731
Platform rigs - North America 26,408 24,608 26,129
Total $48,980 $44,844 $49,675
Utilization
Jackup rigs
North America 89% 95% 84%
Europe 95% 78% 91%
Asia Pacific 82% 72% 89%
South America 98% n/a 100%
Total jackup rigs 88% 85% 87%
Semisubmersible rig - N. America 100% 97% 97%
Barge rigs
Asia Pacific 96% n/a 99%
South America 17% 16% 17%
Total barge rigs 28% 16% 28%
Platform rigs - North America 40% 60% 51%
Total 77% 73% 77%
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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