DALLAS, July 26 /PRNewswire-FirstCall/ -- ENSCO International Incorporated
(NYSE: ESV) reported net income of $70.0 million ($0.46 per diluted share) on
revenues of $248.6 million for the quarter ended June 30, 2005, compared to
net income of $17.5 million ($0.12 per diluted share) on revenues of
$170.9 million for the quarter ended June 30, 2004.
Included in the quarter ended June 30, 2005 results is a $10.9 million
($0.07 per diluted share) after-tax gain from discontinued operations,
comprised of $3.4 million ($0.02 per diluted share) of income related to the
operation and sale of Venezuela barge drilling rigs and $7.5 million ($0.05
per diluted share) of income attributable to the operation and insurance
settlement on ENSCO 64, the jackup rig that was declared a constructive total
loss after sustaining damage by Hurricane Ivan last September. In addition,
the Company elected to prepay $38.2 million of debt attributable to ENSCO 76
on June 15, 2005, and recognized other expense of $2.4 million ($1.6 million
after tax, or $.01 per diluted share) associated with the prepayment.
Quarter ended June 30, 2005 income from continuing operations increased
nearly fourfold from the prior year quarter, primarily due to higher day rates
on the Company's Gulf of Mexico and North Sea jackup rigs, and increased
utilization of the North Sea jackup fleet and the ENSCO 7500 deepwater
semisubmersible rig. Income from continuing operations was $59.1 million
($0.39 per diluted share) for the quarter ended June 30, 2005, compared to
$15.0 million ($0.10 per diluted share) for the quarter ended June 30, 2004.
ENSCO's net income was $111.8 million ($0.74 per diluted share) on
revenues of $460.4 million for the six months ended June 30, 2005, compared to
net income of $38.5 million ($0.26 per diluted share) on revenues of
$349.0 million for the six months ended June 30, 2004. Income from continuing
operations was $99.7 million ($0.66 per diluted share) for the six months
ended June 30, 2005, compared to $34.8 million ($0.23 per diluted share) for
the six months ended June 30, 2004.
The average day rate for ENSCO's operating jackup rig fleet for the
quarter ended June 30, 2005, was $65,400 compared to $51,300 in the prior year
quarter. Utilization of the Company's jackup fleet increased to 88% in the
most recent quarter, up from 82% in the quarter ended June 30, 2004.
Excluding rigs in a shipyard for contract preparation, regulatory inspection
and enhancement, ENSCO's jackup utilization was 97% in the quarter ended
June 30, 2005, compared to 87% in the prior year quarter.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on
the Company's outlook and markets: "We continue to see upward pressure on day
rates, with all of our markets now in balance or undersupplied. Due to tight
rig supply, our customers are addressing rig requirements for 2006 and beyond
to ensure equipment availability.
"Two of our Gulf of Mexico jackup rigs (ENSCO 87 and ENSCO 89) are
currently in shipyards for enhancement and life extension work, with
redelivery scheduled for February 2006 and August 2005, respectively. A third
rig (ENSCO 75) is undergoing spud can repair and is expected to return to
service in August. ENSCO 86 remains to be addressed under our fleet
enhancement program this year, with shipyard work expected to commence in
September and continue until year-end.
"In Asia Pacific, ENSCO 67 remains in a shipyard for major enhancement
with completion expected in late July. Two of our Middle East jackup rigs
(ENSCO 94 and ENSCO 97) are currently in a shipyard undergoing preparatory
work for contracts commencing in September. Three other jackup rigs in the
region (ENSCO 88, ENSCO 95, and ENSCO 96) and one of our Southeast Asia
jackups (ENSCO 56) will enter shipyards over the next several months to
complete contractually required modifications prior to commencing work later
this year or early in 2006.
"Construction of ENSCO 107 and ENSCO 108 continues, with delivery of these
new high-specification jackup rigs scheduled for early 2006 and the first
quarter of 2007, respectively. ENSCO 107 is committed for work in Vietnam
commencing in May 2006 at a day rate in the range of $105,000 to $110,000.
"Our excellent second quarter results were achieved notwithstanding the
aforementioned downtime associated with our fleet enhancement program and
contract preparation activity, which impacted six jackups that were in
shipyards part or all of the quarter. We expect continuing improvement in
2005 operating results with commencement of several term work commitments
later this year and the visibility of continued day rate improvement.
Additionally, with substantial completion of our rig enhancement program by
early 2006 and delivery of ENSCO 107, we anticipate even stronger performance
in 2006."
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 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, including changes in rig supply and demand, (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) changes in the dates the Company's rigs
undergoing shipyard work or enhancement will enter a shipyard or return to
service, (viii) availability of transport vessels to relocate rigs, (ix)
environmental or other liabilities that may arise in the future which are not
covered by insurance or indemnity, (x) 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, (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 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, 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 26, 2005, 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 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 8548884).
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,
2005 2004 2005 2004
OPERATING REVENUES $248.6 $170.9 $460.4 $349.0
OPERATING EXPENSES
Contract drilling 111.0 102.1 219.2 204.9
Depreciation and amortization 38.7 34.1 76.0 67.7
General and administrative 6.2 7.4 12.4 13.1
155.9 143.6 307.6 285.7
OPERATING INCOME 92.7 27.3 152.8 63.3
OTHER INCOME (EXPENSE)
Interest income 1.8 0.8 2.9 1.6
Interest expense, net (8.0) (9.7) (15.8) (19.7)
Other, net (2.0) 1.0 1.8 0.9
(8.2) (7.9) (11.1) (17.2)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 84.5 19.4 141.7 46.1
PROVISION FOR INCOME TAXES 25.4 4.4 42.0 11.3
INCOME FROM CONTINUING OPERATIONS 59.1 15.0 99.7 34.8
GAIN FROM DISCONTINUED OPERATIONS 10.9 2.5 12.1 3.7
NET INCOME $70.0 $17.5 $111.8 $38.5
EARNINGS PER SHARE - BASIC
Continuing operations $0.39 $0.10 $0.66 $0.23
Discontinued operations 0.07 0.02 0.08 0.03
$0.46 $0.12 $0.74 $0.26
EARNINGS PER SHARE - DILUTED
Continuing operations $0.39 $0.10 $0.66 $0.23
Discontinued operations 0.07 0.02 0.08 0.03
$0.46 $0.12 $0.74 $0.26
AVERAGE COMMON SHARES OUTSTANDING
Basic 151.3 150.8 151.1 150.7
Diluted 151.6 150.8 151.5 150.8
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
June 30, December 31,
2005 2004
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $296.9 $267.0
Accounts receivable, net 188.4 183.0
Prepaid expenses and other 42.8 43.7
Total current assets 528.1 493.7
PROPERTY AND EQUIPMENT, NET 2,505.1 2,431.3
GOODWILL 336.2 341.0
OTHER ASSETS 33.8 56.0
$3,403.2 $3,322.0
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $221.3 $192.8
Current maturities of long-term debt 17.2 23.0
Total current liabilities 238.5 215.8
LONG-TERM DEBT 483.9 527.1
DEFERRED INCOME TAXES 355.6 375.3
OTHER LIABILITIES 17.0 21.9
STOCKHOLDERS' EQUITY 2,308.2 2,181.9
$3,403.2 $3,322.0
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
(Unaudited)
Six Months Ended
June 30,
2005 2004
OPERATING ACTIVITIES
Net income $111.8 $38.5
Adjustments to reconcile net income
to net cash provided by operating
activities of continuing operations:
Depreciation and amortization 76.0 67.7
Changes in working capital and other (18.3) 13.0
Net cash provided by operating
activities of continuing
operations 169.5 119.2
INVESTING ACTIVITIES
Additions to property and equipment (223.6) (179.7)
Net proceeds from disposal of
discontinued operations 121.0 ---
Other 0.8 (4.0)
Net cash used in investing activities
of continuing operations (101.8) (183.7)
FINANCING ACTIVITIES
Reduction of long-term borrowings (49.7) (11.5)
Cash dividends paid (7.6) (7.5)
Proceeds from exercise of stock options 21.3 4.8
Other (2.6) (0.1)
Net cash used in financing activities
of continuing operations (38.6) (14.3)
Effect of exchange rate fluctuations
on cash and cash equivalents (1.0) (0.9)
Net cash provided by discontinued operations 1.8 8.9
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 29.9 (70.8)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 267.0 354.0
CASH AND CASH EQUIVALENTS, END OF PERIOD $296.9 $283.2
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
First
Second Quarter Quarter
2005 2004 2005
Contract drilling
Average day rates
Jackup rigs
North America $60,820 $38,344 $53,690
Europe / Africa 75,667 62,131 64,501
Asia Pacific 65,737 61,862 64,645
South America / Caribbean na 89,957 77,589
Total jackup rigs 65,434 51,344 59,963
Semisubmersible rig - N. America 141,788 na 122,618
Barge rig - Asia Pacific 52,249 47,867 50,031
Platform rigs - North America 29,476 29,475 27,525
Total $65,446 $50,697 $60,337
Utilization
Jackup rigs
North America 86% 86% 89%
Europe / Africa 96% 66% 87%
Asia Pacific 87% 87% 85%
South America / Caribbean na 90% 100%
Total jackup rigs 88% 82% 87%
Semisubmersible rig - N. America 92% 0% 69%
Barge rig - Asia Pacific 96% 100% 99%
Platform rigs - North America 66% 33% 65%
Total 87% 78% 85%
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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