ENSCO Announces First Quarter Earnings. NYMEX crude up another $0.40. Morning profit taking set in. Will they rebound in response to oil pressure (Venezuela crunch) or ESV's cautious statement about future earning?
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PR Newswire - April 16, 1998 10:24
ESV %OIL %MAR %ERN V%PRN P%PRN
DALLAS, April 16 /PRNewswire/ -- ENSCO International Incorporated
(NYSE: ESV) reported net income for the three months ended March 31, 1998 of
$87.2 million, or $.61 per diluted share, on revenues of $246.4 million.
First quarter 1998 earnings increased 140% from year ago levels, when the
Company reported $36.3 million, or $.25 per diluted share, on revenues of
$161.6 million.
The average day rate for the Company's jackup rigs was approximately
$63,100 in the first quarter of 1998 compared to $41,100 in the first quarter
of 1997. Utilization for ENSCO's jackup fleet increased to 94% in the first
three months of 1998 from 88% in the year earlier period due primarily to less
shipyard downtime for enhancements in the 1998 quarter. Excluding shipyard
downtime, utilization was 99% in the first quarter of both 1998 and 1997.
In the marine transportation segment, average day rates for the Company's
37 oilfield support vessels increased approximately 28% to $8,700 in the most
recent quarter compared to $6,800 in the first quarter of 1997. Average
utilization for the Company's marine fleet was 89% in the first quarter of
1998, a slight reduction from the 92% utilization achieved in the year earlier
period, due to an increase in required drydockings during the 1998 quarter.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on
the Company's recent results and current outlook. "The first quarter results
were another record for the Company. We are, however, beginning to see the
impact of lower oil prices and other factors, which could have a negative
effect on near term day rates, utilization and financial results. We remain
positive on the long-term prospects for our industry. Construction of the
ENSCO 101, a new harsh-environment jackup rig, and three new barge drilling
rigs for Chevron in Venezuela, are proceeding as planned."
Statements contained in this press release that state the Company's or
management's intentions, hopes, beliefs, expectations or predictions of the
future are forward-looking statements. It is important to note that the
Company's actual results could differ materially from those projected in such
forward-looking statements. Additional information concerning factors that
could cause actual results to differ materially from those in the forward-
looking statements is contained from time to time in the Company's SEC
filings, including but not limited to the Company's report on Form 10-K for
the year ended December 31, 1997, and the Company's reports on Form 10-Q for
the quarters ended March 31, 1997, June 30, 1997, and September 30, 1997.
Copies of these may be obtained by contacting the Company or the SEC.
ENSCO, headquartered in Dallas, Texas, provides contract drilling and
marine transportation services to the international petroleum industry.
ENSCO INTERNATIONAL INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS
(In millions, except per share data)
Three Months Ended
March 31,
1998 1997
OPERATING REVENUES $ 246.4 $ 161.6
EXPENSES
Operating expenses 83.7 70.1
Depreciation and amortization 19.8 24.2
General and administrative 3.6 3.1
107.1 97.4
OPERATING INCOME 139.3 64.2
OTHER INCOME (EXPENSE)
Interest income 2.7 1.4
Interest expense, net (7.6) (5.8)
Other, net (0.1) 0.1
(5.0) (4.3)
INCOME BEFORE INCOME TAXES AND
MINORITY INTEREST 134.3 59.9
PROVISION FOR INCOME TAXES
Current income taxes 34.8 9.2
Deferred income taxes 11.0 13.5
45.8 22.7
MINORITY INTEREST 1.3 0.9
NET INCOME $ 87.2 $ 36.3
EARNINGS PER SHARE
Basic $ 0.62 $ 0.26
Diluted $ 0.61 $ 0.25
AVERAGE COMMON SHARES OUTSTANDING
Basic 141.5 140.8
Diluted 142.9 142.6
ENSCO INTERNATIONAL INCORPORATED
CONSOLIDATED BALANCE SHEET
(In millions)
March 31, December 31,
1998 1997
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and cash equivalents $ 318.5 $ 262.2
Accounts receivable, net 166.4 157.2
Prepaid expenses and other 21.0 27.7
Total current assets 505.9 447.1
Property and Equipment, Net 1,261.9 1,177.1
Other Assets, Net 139.8 147.8
Total Assets $1,907.6 $1,772.0
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued
liabilities $ 150.2 $ 101.6
Current maturities of long-term
debt 25.7 29.3
Total current liabilities 175.9 130.9
Long-term Debt 395.2 400.8
Deferred Income Taxes 139.3 128.2
Other Liabilities 36.2 35.4
Stockholders' Equity 1,161.0 1,076.7
Total Liabilities and
Stockholders' Equity $1,907.6 $1,772.0
ENSCO INTERNATIONAL INCORPORATED
SEGMENT RESULTS
(In millions)
Fourth
First Quarter Quarter
1998 1997 1997
Operating Revenues:
Contract Drilling $ 220.8 $ 140.8 $ 208.1
Marine Transportation 25.6 20.8 26.7
Total Segment Revenues $ 246.4 $ 161.6 $ 234.8
Operating Expenses: (A)
Contract Drilling $ 73.4 $ 61.9 $ 69.0
Marine Transportation 10.3 8.2 10.1
Total Segment Expenses $ 83.7 $ 70.1 $ 79.1
Operating Margins: (A)
Contract Drilling $ 147.4 $ 78.9 $ 139.1
Marine Transportation 15.3 12.6 16.6
Total Segment Margins $ 162.7 $ 91.5 $ 155.7
(A) Exclusive of depreciation and amortization and general and
administrative expenses.
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
Fourth
First Quarter Quarter
1998 1997 1997
Contract Drilling
Average Day Rates:
North America Jackups $ 56,174 $ 37,006 $ 53,548
Europe Jackups 100,326 60,649 96,467
Asia Pacific Jackups 48,477 32,624 43,387
Total Jackups 63,120 41,084 59,448
South America Barges 25,246 22,813 21,081
North America Platforms 23,098 17,909 22,698
Total $ 52,288 $ 34,653 $ 49,177
Utilization:
North America Jackups 98.6% 92.7% 94.3%
Europe Jackups 100.0% 100.0% 100.0%
Asia Pacific Jackups 71.4% 60.6% 88.7%
Total Jackups 93.6% 88.3% 94.2%
South America Barges 100.0% 100.0% 100.0%
North America Platforms 85.7% 60.6% 73.9%
Total 93.8% 86.8% 92.6%
Marine Transportation
Average Day Rates:
AHTS $ 16,232 $ 10,992 $ 16,897
Supply 8,908 6,962 8,625
Mini-Supply 4,455 3,726 4,368
Total $ 8,676 $ 6,791 $ 8,742
Utilization:
AHTS 72.9% 79.4% 84.6%
Supply 89.5% 94.2% 90.4%
Mini-Supply 96.3% 96.4% 91.3%
Total 88.7% 92.2% 89.8%
SOURCE ENSCO International Incorporated
/CONTACT: Richard LeBlanc of ENSCO International Incorporated,
214-922-1550/
(ESV) |
