DALLAS, Oct. 19 /PRNewswire-FirstCall/ -- ENSCO International Incorporated
(NYSE: ESV) reported net income of $25.8 million ($0.17 per diluted share) on
revenues of $190.9 million for the three months ended September 30, 2004,
compared to net income of $27.8 million ($0.19 per diluted share) on revenues
of $197.3 million for the three months ended September 30, 2003. The
Company's deepwater semisubmersible rig, ENSCO 7500, experienced lower
utilization and day rate in the quarter, which contributed to the quarter over
quarter decrease in earnings. Net income for the most recent quarter includes
$5.5 million of expense relating to the potential maximum insurance deductible
associated with damage sustained by two ENSCO rigs during Hurricane Ivan (as
further discussed below). This expense was offset in part by a $3.9 million
insurance recovery for loss of revenue and damage to the ENSCO 7500 sustained
during the first quarter of 2002 (as previously discussed in the Company's SEC
filing on Form 10-Q for the quarter ended June 30, 2004).
ENSCO's net income was $64.3 million ($0.43 per diluted share) on revenues
of $558.8 million for the nine months ended September 30, 2004, compared to
net income of $81.8 million ($0.55 per diluted share) on revenues of
$584.5 million for the nine months ended September 30, 2003.
The average day rate for ENSCO's operating jackup rig fleet was $54,800
for the third quarter of 2004, compared to $48,400 in the prior year quarter.
Utilization for the Company's jackup fleet decreased to 82% in the most recent
quarter, from 88% in the third quarter of 2003. Excluding rigs in a shipyard
for contract preparation, regulatory inspection, repair and enhancement,
ENSCO's jackup utilization was 91% 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 outlook and markets: "We are encouraged by stronger global
activity levels and day rates. In the third quarter, we realized day rate
improvement from year ago levels in all three of our major jackup markets,
with a 33% improvement in average day rates for our North America jackups
being the most significant. All of our North Sea jackup rigs have returned to
service, as has our deepwater semisubmersible rig in the Gulf of Mexico, the
ENSCO 7500.
"In September, one of our Gulf of Mexico jackup rigs, ENSCO 64, was
severely damaged during Hurricane Ivan. A platform rig, ENSCO 25, also
sustained damage during the storm. We are still in the process of assessing
the full extent of damage to both rigs. The contract on ENSCO 64 was
terminated in mid-September while the contract on ENSCO 25 reverted to a
standby rate while repairs are undertaken over the remainder of 2004.
"With regard to our rigs that were recently relocated to Southeast Asia
and the Middle East, work continues on ENSCO 67 in Southeast Asia with
completion scheduled for the second quarter of 2005. In the Middle East, we
are nearing completion of a living-quarters upgrade on ENSCO 88 and the rig
will soon commence a contract in Qatar. We expect ENSCO 95 to commence work
in the area during December 2004, following completion of enhancement and life
extension work.
"We continue enhancement and life extension projects on our Gulf of Mexico
fleet, with ENSCO 68 now in a shipyard for a major upgrade with completion
anticipated by the end of this month. We will likely defer our previously
scheduled major upgrade of ENSCO 87 until we make a final determination
regarding the future of ENSCO 64. With regard to more limited shipyard
projects, we anticipate that the upgrade of ENSCO 84 will be complete by mid-
January. ENSCO 99 is scheduled to enter a shipyard next month for
approximately four months of enhancement and life extension work, likely to be
followed by ENSCO 89 and ENSCO 86 in 2005.
"Construction of our two new ultra high-specification jackups, ENSCO 106
and ENSCO 107, continues in a Singapore shipyard. We anticipate delivery of
ENSCO 106, our 25% owned joint venture rig, by year-end and after
commissioning, the rig should be available for work early in the first quarter
of 2005. ENSCO 107 is scheduled for delivery in December 2005.
"Despite the impact of Hurricane Ivan, our third quarter results exceeded
expectations, and reflect the improvement we anticipated entering the second
half of the year. We expect this positive trend to continue into the fourth
quarter."
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) the
determination whether the ENSCO 64 will be repaired or declared a constructive
total loss, (xi) availability of transport vessels to relocate rigs, (xii)
political and economic uncertainty, 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 October 19, 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.
Contact: Richard LeBlanc
214-397-3011
ENSCO will conduct a conference call at 10:00 a.m. Central Daylight Time
on Tuesday, October 19, 2004, to discuss its third 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 913.981.5542. 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 861408).
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
OPERATING REVENUES $190.9 $197.3 $558.8 $584.5
OPERATING EXPENSES
Contract drilling 105.4 112.8 319.8 331.3
Depreciation and amortization 36.0 32.6 107.6 97.0
General and administrative 6.8 5.2 19.9 15.9
148.2 150.6 447.3 444.2
OPERATING INCOME 42.7 46.7 111.5 140.3
OTHER INCOME (EXPENSE)
Interest income 0.9 0.9 2.5 2.5
Interest expense, net (8.7) (8.9) (28.4) (27.2)
Other, net (1.2) 0.8 0.3 (0.4)
(9.0) (7.2) (25.6) (25.1)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 33.7 39.5 85.9 115.2
PROVISION FOR INCOME TAXES 8.0 11.3 20.9 32.9
INCOME FROM CONTINUING OPERATIONS 25.7 28.2 65.0 82.3
DISCONTINUED OPERATIONS 0.1 (0.4) (0.7) (0.5)
NET INCOME $25.8 $27.8 $64.3 $81.8
EARNINGS (LOSS) PER SHARE - BASIC
Continuing operations $0.17 $0.19 $0.43 $0.55
Discontinued operations 0.00 (0.00) (0.00) (0.00)
$0.17 $0.19 $0.43 $0.55
EARNINGS (LOSS) PER SHARE - DILUTED
Continuing operations $0.17 $0.19 $0.43 $0.55
Discontinued operations 0.00 (0.00) (0.00) (0.00)
$0.17 $0.19 $0.43 $0.55
AVERAGE COMMON SHARES OUTSTANDING
Basic 150.8 149.8 150.7 149.5
Diluted 151.0 150.2 150.8 150.0
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
September 30, December 31,
2004 2003
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $280.7 $354.0
Accounts receivable, net 151.1 149.4
Prepaid expenses and other 38.0 39.9
Total current assets 469.8 543.3
PROPERTY AND EQUIPMENT, NET 2,401.5 2,217.2
GOODWILL 341.0 342.7
OTHER ASSETS 41.9 79.8
$3,254.2 $3,183.0
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $172.4 $164.4
Current maturities of long-term debt 23.0 23.0
Total current liabilities 195.4 187.4
LONG-TERM DEBT 535.7 549.9
DEFERRED INCOME TAXES 362.5 345.9
OTHER LIABILITIES 17.7 18.7
STOCKHOLDERS' EQUITY 2,142.9 2,081.1
$3,254.2 $3,183.0
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
(Unaudited)
Nine Months Ended
September 30,
2004 2003
OPERATING ACTIVITIES
Net income $64.3 $81.8
Adjustments to reconcile net
income to net cash provided
by operating activities of
continuing operations:
Depreciation and amortization 107.6 97.0
Changes in working capital and other 27.7 25.9
Net cash provided by operating
activities of continuing operations 199.6 204.7
INVESTING ACTIVITIES
Additions to property and equipment (247.7) (141.2)
Net proceeds from sale
of discontinued operations --- 78.8
Other (3.7) 31.1
Net cash used in investing activities
of continuing operations (251.4) (31.3)
FINANCING ACTIVITIES
Proceeds from long-term borrowings --- 26.7
Reduction of long-term borrowings (14.5) (14.5)
Cash dividends paid (11.3) (11.3)
Other 6.1 7.0
Net cash provided by (used
in) financing activities of
continuing operations (19.7) 7.9
EFFECT OF EXCHANGE RATE FLUCTUATIONS
ON CASH AND CASH EQUIVALENTS (1.9) 0.8
NET CASH PROVIDED BY (USED IN)
DISCONTINUED OPERATIONS 0.1 (2.3)
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (73.3) 179.8
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 354.0 147.1
CASH AND CASH EQUIVALENTS, END OF PERIOD $280.7 $326.9
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
(Unaudited)
Second
Third Quarter Quarter
2004 2003 2004
Contract drilling
Average day rates
Jackup rigs
North America $43,001 $32,355 $38,829
Europe / Africa 62,767 61,025 62,131
Asia Pacific 63,355 62,989 61,862
South America / Caribbean 88,791 90,040 89,957
Total jackup rigs 54,751 48,411 51,221
Semisubmersible rig - N. America 86,605 189,433 na
Barge rigs
Asia Pacific 51,777 41,923 47,867
South America / Caribbean na 42,569 36,268
Total barge rigs 51,777 42,246 40,741
Platform rigs - North America 30,384 25,846 29,475
Total $54,414 $50,720 $49,911
Utilization
Jackup rigs
North America 83% 85% 86%
Europe / Africa 77% 91% 66%
Asia Pacific 83% 88% 87%
South America / Caribbean 100% 98% 90%
Total jackup rigs 82% 88% 83%
Semisubmersible rig - N. America 36% 95% 0%
Barge rigs
Asia Pacific 100% 100% 100%
South America / Caribbean 0% 17% 27%
Total barge rigs 14% 29% 37%
Platform rigs - North America 33% 67% 33%
Total 70% 79% 72%
SOURCE ENSCO International Incorporated
 back to top
Related links:
http://www.enscous.com
CONTACT:
Richard LeBlanc of ENSCO International
Incorporated, +1-214-397-3011
|
