DALLAS, July 20 /PRNewswire-FirstCall/ -- ENSCO International Incorporated
(NYSE: ESV) reported net income of $17.5 million ($0.12 per diluted share) on
revenues of $181.4 million for the three months ended June 30, 2004, compared
to net income of $31.1 million ($0.21 per diluted share) on revenues of
$194.3 million for the three months ended June 30, 2003. ENSCO's income from
continuing operations was $18.0 million ($0.12 per diluted share) in the
second quarter of 2004, compared to $27.4 million ($0.18 per diluted share)
for the three months ended June 30, 2003. Discontinued operations include the
Company's marine transportation vessels sold in April 2003 and three rigs sold
and exchanged for construction of ENSCO 107, a new high-specification jackup
rig, as announced in February 2004.
ENSCO's net income was $38.5 million ($0.26 per diluted share) on revenues
of $367.9 million for the six months ended June 30, 2004, compared to net
income of $54.0 million ($0.36 per diluted share) on revenues of
$387.2 million for the six months ended June 30, 2003. ENSCO's income from
continuing operations was $39.3 million ($0.26 per diluted share) for the
first six months of 2004, compared to $54.1 million ($0.36 per diluted share)
for the six months ended June 30, 2003.
The average day rate for ENSCO's operating jackup rig fleet was
$51,200 for the second quarter of 2004, compared to $47,500 in the prior year
quarter. Utilization for the Company's jackup fleet decreased to 83% in the
most recent quarter, from 88% in the second quarter of 2003. Excluding rigs
in a shipyard for contract preparation, regulatory inspection and
enhancements, ENSCO's jackup utilization was 88% in the most recent quarter,
compared to 96% in the year earlier period. Lower utilization for ENSCO's
North Sea jackup rigs was the primary reason for this decrease.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on
the Company's outlook and markets: "With international demand for jackups
strengthening, we are proceeding as planned with rig relocations. We continue
to make good progress with our fleet renewal program.
"The ENSCO 67 departed the Gulf of Mexico in June and will enter a
shipyard in Singapore to undergo a major upgrade, including conversion from
slot to cantilever configuration, with redelivery expected in the second
quarter of 2005. We altered our plans to relocate ENSCO 93 and ENSCO 95 from
the Gulf of Mexico to the Middle East when we were unable to meet the
transport vessel's departure deadline in June. Both rigs were scheduled to
enter a shipyard for enhancement upon arrival in the Middle East. In order to
expedite rig availability in the Middle East, we decided to relocate ENSCO 88
in lieu of ENSCO 93. The ENSCO 88 upgrade is well underway in a Gulf of
Mexico shipyard with expected completion in mid-August. The rig will
thereupon mobilize to a Middle East shipyard to install additional quarters
and should be available for work by mid-October, essentially in the same time
frame as the original plan for ENSCO 93. ENSCO 95 will mobilize to a shipyard
in the Middle East in late July to undergo a major upgrade, with redelivery in
November 2004 as originally planned. ENSCO 93 has returned to work in the
Gulf of Mexico.
"We continue our upgrade program in the Gulf of Mexico. ENSCO 68 is in a
shipyard for a major enhancement with redelivery expected in October 2004. We
expect ENSCO 87 to follow in the fourth quarter for a nine-month major
upgrade. With respect to more limited upgrades, ENSCO 84 will enter a
shipyard late in the third quarter for a four-month enhancement project. We
now expect to incur approximately 21 rig-months of downtime in connection with
all of our jackup rig enhancements during the remainder of this year.
"Consistent with our expectations, the demand for premium jackups is
strengthening with activity in the second half of the year expected to be
stronger than in the first half. Drilling activity remains strong in the
Pacific Rim, Middle East, and India, with attractive long-term work
opportunities continuing to evolve. After having lagged other markets, the
Gulf of Mexico and the North Sea are now showing signs of improvement."
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, 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 July 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, July 20, 2004, to discuss its second quarter 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 719.457.2679. 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 230446).
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
OPERATING REVENUES $181.4 $194.3 $367.9 $387.2
OPERATING EXPENSES
Contract drilling 107.0 109.0 214.4 218.5
Depreciation and amortization 36.0 32.6 71.6 64.4
General and administrative 7.4 4.8 13.1 10.7
150.4 146.4 299.1 293.6
OPERATING INCOME 31.0 47.9 68.8 93.6
OTHER INCOME (EXPENSE)
Interest income 0.8 0.9 1.6 1.6
Interest expense, net (9.7) (9.1) (19.7) (18.3)
Other, net 1.0 (1.4) 1.5 (1.2)
(7.9) (9.6) (16.6) (17.9)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 23.1 38.3 52.2 75.7
PROVISION FOR INCOME TAXES 5.1 10.9 12.9 21.6
INCOME FROM CONTINUING OPERATIONS 18.0 27.4 39.3 54.1
DISCONTINUED OPERATIONS (0.5) 3.7 (0.8) (0.1)
NET INCOME $ 17.5 $ 31.1 $ 38.5 $ 54.0
EARNINGS PER SHARE - BASIC
Continuing operations $ 0.12 $ 0.18 $ 0.26 $ 0.36
Discontinued operations 0.00 0.03 0.00 0.00
$ 0.12 $ 0.21 $ 0.26 $ 0.36
EARNINGS PER SHARE - DILUTED
Continuing operations $ 0.12 $ 0.18 $ 0.26 $ 0.36
Discontinued operations 0.00 0.03 0.00 0.00
$ 0.12 $ 0.21 $ 0.26 $ 0.36
AVERAGE COMMON SHARES OUTSTANDING
Basic 150.8 149.5 150.7 149.4
Diluted 150.8 150.1 150.8 149.9
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
June 30, December 31,
2004 2003
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 283.2 $ 354.0
Accounts receivable, net 144.9 149.4
Prepaid expenses and other 31.8 39.9
Total current assets 459.9 543.3
PROPERTY AND EQUIPMENT, NET 2,375.0 2,217.2
GOODWILL 342.7 342.7
OTHER ASSETS 41.2 79.8
$3,218.8 $3,183.0
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 166.7 $ 164.4
Current maturities of long-term debt 23.0 23.0
Total current liabilities 189.7 187.4
LONG-TERM DEBT 538.5 549.9
DEFERRED INCOME TAXES 353.5 345.9
OTHER LIABILITIES 18.5 18.7
STOCKHOLDERS' EQUITY 2,118.6 2,081.1
$3,218.8 $3,183.0
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
(Unaudited)
Six Months Ended
June 30,
2004 2003
OPERATING ACTIVITIES
Net income $38.5 $54.0
Adjustments to reconcile net income to
net cash provided by operating activities
of continuing operations:
Depreciation and amortization 71.6 64.4
Changes in working capital and other 18.4 5.4
Net cash provided by operating
activities of continuing operations 128.5 123.8
INVESTING ACTIVITIES
Additions to property and equipment (179.7) (100.6)
Net proceeds from sale of discontinued
operations --- 78.8
Other (3.9) 28.4
Net cash provided by (used in)
investing activities of continuing
operations (183.6) 6.6
FINANCING ACTIVITIES
Reduction of long-term borrowings (11.5) (11.5)
Cash dividends paid (7.5) (7.5)
Other 4.7 5.3
Net cash used in financing
activities of continuing operations (14.3) (13.7)
EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH
AND CASH EQUIVALENTS (1.4) 1.0
NET CASH USED IN DISCONTINUED OPERATIONS --- (2.6)
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (70.8) 115.1
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 354.0 147.1
CASH AND CASH EQUIVALENTS, END OF PERIOD $283.2 $262.2
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
(Unaudited)
First
Second Quarter Quarter
2004 2003 2004
Contract drilling
Average day rates
Jackup rigs
North America $ 38,829 $ 27,937 $ 38,964
Europe / Africa 62,131 69,786 56,506
Asia Pacific 61,862 62,791 63,931
South America / Caribbean 89,957 86,104 89,637
Total jackup rigs 51,221 47,499 50,166
Semisubmersible rig - N. America n/a 188,346 184,815
Barge rigs
Asia Pacific 47,867 40,239 41,788
South America / Caribbean 36,268 41,368 41,900
Total barge rigs 40,741 40,816 41,845
Platform rigs - North America 29,475 26,408 28,486
Total $ 49,911 $ 49,548 $ 51,481
Utilization
Jackup rigs
North America 86% 88% 87%
Europe / Africa 66% 95% 91%
Asia Pacific 87% 82% 76%
South America / Caribbean 90% 98% 98%
Total jackup rigs 83% 88% 85%
Semisubmersible rig - N. America 0% 100% 66%
Barge rigs
Asia Pacific 100% 96% 100%
South America / Caribbean 27% 17% 17%
Total barge rigs 37% 28% 29%
Platform rigs - North America 33% 67% 33%
Total 72% 79% 74%
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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