DALLAS, Oct. 21 /PRNewswire-FirstCall/ -- ENSCO International Incorporated
(NYSE: ESV) reported net income of $27.8 million ($0.19 per diluted share) on
revenues of $199.6 million for the three months ended September 30, 2003,
compared to net income of $30.5 million ($0.21 per diluted share) on revenues
of $179.2 million for the three months ended September 30, 2002. Excluding
results of the Company's marine transportation vessels that were sold in
April 2003, ENSCO's income from continuing operations was $27.7 million
($0.18 per diluted share) in the third quarter of 2003 compared to
$29.0 million ($0.20 per diluted share) for the three months ended
September 30, 2002.
ENSCO's net income for the first nine months of 2003 was $81.8 million
($0.55 per diluted share) on revenues of $591.6 million, compared to net
income of $70.0 million ($0.50 per diluted share) on revenues of
$455.3 million for the prior year's first nine month period. Income from
continuing operations was $80.8 million ($0.54 per diluted share) for the
first nine months of 2003 compared to $66.4 million ($0.48 per diluted share)
for the first nine months of 2002.
The average day rate for ENSCO's jackup rig fleet was $47,800 for the
third quarter of 2003, little changed from the $48,000 average day rate in the
year earlier quarter. Utilization for the Company's jackup fleet increased to
88% in the most recent quarter, up from 83% in the third quarter of 2002.
Excluding rigs in a shipyard for regulatory inspection or enhancement work,
jackup utilization was 94% 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 current markets and outlook: "We have seen steady improvement in
Gulf of Mexico day rates, most notably for the larger, more capable jackup
rigs. As cautioned in our July earnings release, North Sea day rates have
softened, and little improvement is anticipated until 2004. We are currently
experiencing a lull in Asia Pacific activity as 2003 programs are being
completed. Four Asia Pacific jackup rigs are currently between contracts, and
will undergo minor shipyard remedial and/or contract preparation work. A
fifth rig will enter a shipyard during the fourth quarter. Two of these rigs
are scheduled to commence new term contracts later this year upon completion
of that work. We continue to anticipate Asia Pacific activity levels to be
fairly robust in 2004.
"Our fleet renewal program continues. In North America, ENSCO 82 remains
in a shipyard for a major upgrade, with expected completion in mid-November of
this year. We expect the rig to be contractually committed upon completion of
the upgrade project. ENSCO 68 is scheduled to enter a shipyard for major
enhancement before year-end, and ENSCO 67 is scheduled to follow in early
March of 2004. With regard to more limited projects, ENSCO 60 remains in a
shipyard until mid-December, and ENSCO 55 is scheduled to follow for an
estimated three month stay. As indicated above, we will soon have five Asia
Pacific rigs in shipyards. ENSCO 50 entered a shipyard in September, ENSCO 53
in October, and ENSCO 54 will follow in November. The three rigs are
scheduled for delivery in December or early January, and are bid on a number
of term contracts commencing in the first quarter of 2004. ENSCO 97 and ENSCO
94 are also undergoing minor shipyard work in preparation for term contracts
which commence in November and December, respectively.
"We expect the improved market conditions in the Gulf of Mexico to be
offset by softness in the North Sea and Asia Pacific and, when also
considering scheduled shipyard downtime, we anticipate fourth quarter 2003
results to be approximately the same as third quarter results."
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 trends or conditions and our fourth 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 a shipyard
or return to 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 October 21, 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 Tuesday, October 21, 2003, to discuss its third
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
913.981.5558. 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, by phone at 719.457.0820 (access number 315129) starting
today at 1:00 pm CDT until midnight October 22, 2003.
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
OPERATING REVENUES $199.6 $179.2 $591.6 $455.3
OPERATING EXPENSES
Contract drilling 114.7 93.5 337.0 246.4
Depreciation and amortization 33.7 29.9 100.6 84.6
General and administrative 5.2 4.8 15.9 13.8
153.6 128.2 453.5 344.8
OPERATING INCOME 46.0 51.0 138.1 110.5
OTHER INCOME (EXPENSE)
Interest income 0.9 1.1 2.5 4.2
Interest expense, net (8.9) (7.7) (27.2) (23.6)
Other, net 0.8 (1.8) (0.4) 6.4
(7.2) (8.4) (25.1) (13.0)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 38.8 42.6 113.0 97.5
PROVISION FOR INCOME TAXES 11.1 13.6 32.2 31.1
INCOME FROM CONTINUING OPERATIONS 27.7 29.0 80.8 66.4
DISCONTINUED OPERATIONS 0.1 1.5 1.0 3.6
NET INCOME $27.8 $30.5 $81.8 $70.0
EARNINGS PER SHARE - BASIC
Continuing operations $0.18 $0.20 $0.54 $0.48
Discontinued operations 0.01 0.01 0.01 0.03
$0.19 $0.21 $0.55 $0.51
EARNINGS PER SHARE - DILUTED
Continuing operations $0.18 $0.20 $0.54 $0.48
Discontinued operations 0.01 0.01 0.01 0.02
$0.19 $0.21 $0.55 $0.50
AVERAGE COMMON SHARES OUTSTANDING
Basic 149.8 143.6 149.5 137.9
Diluted 150.2 144.3 150.0 138.7
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
September 30, December 31,
2003 2002
ASSETS
CURRENT ASSETS
Cash and cash equivalents $326.9 $147.1
Short-term investments --- 38.4
Accounts receivable, net 164.4 162.8
Prepaid expenses and other 41.0 39.2
Total current assets 532.3 387.5
PROPERTY AND EQUIPMENT, NET 2,225.2 2,258.0
GOODWILL 341.6 350.2
OTHER ASSETS, NET 74.2 65.8
$3,173.3 $3,061.5
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $198.7 $176.8
Current maturities of long-term debt 23.0 21.5
Total current liabilities 221.7 198.3
LONG-TERM DEBT 558.4 547.5
DEFERRED INCOME TAXES 325.8 332.3
OTHER LIABILITIES 16.9 16.4
STOCKHOLDERS' EQUITY 2,050.5 1,967.0
$3,173.3 $3,061.5
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
Nine Months Ended
September 30,
2003 2002
OPERATING ACTIVITIES
Net income $81.8 $70.0
Adjustments to reconcile net income to net
cash provided by operating activities of
continuing operations:
Depreciation and amortization 100.6 84.6
Deferred income tax provision 26.2 22.0
Discontinued operations (1.0) (3.6)
Changes in working capital and other 1.5 (23.3)
Net cash provided by operating
activities of continuing operations 209.1 149.7
INVESTING ACTIVITIES
Additions to property and equipment (141.3) (156.7)
Net proceeds from sale of discontinued
operations 78.8 ---
Net cash used in Chiles acquisition --- (99.9)
Proceeds from disposition of assets 2.2 24.4
Sale of investments 38.4 22.0
Investment in joint venture (11.7) ---
Net cash used in investing activities
of continuing operations (33.6) (210.2)
FINANCING ACTIVITIES
Proceeds from long-term borrowings 26.7 ---
Reduction of long-term borrowings (14.5) (57.3)
Cash dividends paid (11.3) (10.5)
Proceeds from exercise of stock options 7.7 17.3
Other (0.7) (2.4)
Net cash provided by (used in)
financing activities of continuing
operations 7.9 (52.9)
NET CASH USED IN DISCONTINUED OPERATIONS (3.6) (2.4)
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 179.8 (115.8)
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD 147.1 278.8
CASH AND CASH EQUIVALENTS, END OF PERIOD $326.9 $163.0
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
Second
Third Quarter Quarter
2003 2002 2003
Contract drilling
Average day rates
Jackup rigs
North America $31,987 $30,542 $27,798
Europe 61,025 78,507 69,786
Asia Pacific 62,989 59,029 62,791
South America 90,040 75,771 86,104
Total jackup rigs 47,803 47,993 46,911
Semisubmersible rig - N. America 189,433 187,048 188,346
Barge rigs
Asia Pacific 41,923 41,750 40,239
South America 42,569 38,120 41,368
Total barge rigs 42,246 38,658 40,816
Platform rigs - North America 25,846 26,688 26,408
Total $50,118 $50,290 $48,980
Utilization
Jackup rigs
North America 86% 87% 89%
Europe 91% 79% 95%
Asia Pacific 88% 76% 82%
South America 98% 100% 98%
Total jackup rigs 88% 83% 88%
Semisubmersible rig - N. America 95% 100% 100%
Barge rigs
Asia Pacific 100% 100% 96%
South America 17% 15% 17%
Total barge rigs 29% 21% 28%
Platform rigs - North America 40% 60% 40%
Total 76% 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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