Thursday October 14, 10:19 am Eastern Time
Company Press Release
SOURCE: ENSCO International Incorporated
ENSCO Announces Third Quarter Results
DALLAS, Oct. 14 /PRNewswire/ -- ENSCO International Incorporated (NYSE: ESV - news) reported a net loss for the
three months ended September 30, 1999 of $11.0 million, or $.08 per diluted share, on revenues of $76.4 million, compared to
net income of $59.0 million, or $.42 per diluted share, on revenues of $179.8 million for the three months ended September 30,
1998.
ENSCO had a net loss of $0.8 million, or $.01 per diluted share, on revenues of $283.5 million for the first nine months of
1999, compared to net income of $226.8 million, or $1.60 per diluted share, for the first nine months of 1998.
The average day rate for the Company's jackup rig fleet was approximately $20,500 for the third quarter of 1999, compared to
approximately $51,600 in the third quarter of 1998. Utilization of the Company's jackup fleet decreased to 74% in the most
recent quarter, from 80% in the prior year quarter.
In the marine transportation segment, average day rates in the third quarter of 1999 for the Company's fleet of oilfield support
vessels decreased to approximately $4,100, compared to $7,000 in the year earlier quarter. Average utilization for the
Company's marine fleet was 63% in the third quarter of 1999, compared to 76% in the third quarter of 1998.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on the Company's recent results and current
outlook. ``As expected, our third quarter results reflect the difficult market conditions that have prevailed during 1999, and we
do not expect any significant improvement over the remainder of this year. That said, we are beginning to see some strengthening
in the Gulf of Mexico drilling market, both in terms of activity levels and day rates. International markets remain soft, however,
and we currently believe that meaningful recovery in these markets will lag recovery in the Gulf of Mexico by nine to twelve
months.'
Statements contained in this press release that state the Company's or management's intentions, hopes, beliefs, or 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, 1998, and the
Company's reports on Form 10-Q for the quarters ended September 30, 1998, March 31, 1999, and June 30, 1999. 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 BALANCE SHEET
(In millions)
September 30, December 31,
1999 1998
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 194.3 $ 330.1
Accounts receivable, net 80.9 118.4
Prepaid expenses and other 23.1 27.8
Total current assets 298.3 476.3
Property and equipment, net 1,550.2 1,389.4
Other assets, net 123.2 127.1
$1,971.7 $1,992.8
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and
accrued liabilities $ 120.7 $ 135.8
Current maturities of
long-term debt 4.0 23.6
Total current liabilities 124.7 159.4
Long-term debt 372.2 375.5
Deferred income taxes 206.4 180.0
Other liabilities 15.5 17.1
Minority interest 16.0 15.8
Stockholders' equity 1,236.9 1,245.0
$1,971.7 $1,992.8
ENSCO INTERNATIONAL INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
OPERATING REVENUES $76.4 $179.8 $283.5 $660.2
EXPENSES
Operating expenses 62.1 80.5 191.9 247.8
Depreciation and
amortization 25.2 20.9 73.7 60.9
General and administrative 2.8 3.8 8.6 11.5
90.1 105.2 274.2 320.2
OPERATING INCOME (LOSS) (13.7) 74.6 9.3 340.0
OTHER INCOME (EXPENSE)
Interest income 3.1 4.0 10.7 10.5
Interest expense, net (4.6) (6.2) (14.8) (20.4)
Other, net --- 10.0 (0.1) 10.0
(1.5) 7.8 (4.2) 0.1
INCOME (LOSS) BEFORE INCOME
TAXES AND MINORITY INTEREST (15.2) 82.4 5.1 340.1
PROVISION (BENEFIT)
FOR INCOME TAXES
Current income taxes (13.5) 1.3 (20.7) 67.3
Deferred income taxes 9.6 21.0 26.4 43.1
(3.9) 22.3 5.7 110.4
MINORITY INTEREST (0.3) 1.1 0.2 2.9
NET INCOME (LOSS) $(11.0) $59.0 $(0.8) $226.8
NET INCOME (LOSS) PER SHARE
Basic $(0.08) $0.42 $(0.01) $1.61
Diluted $(0.08) $0.42 $(0.01) $1.60
AVERAGE COMMON SHARES OUTSTANDING
Basic 136.6 139.0 136.5 140.6
Diluted 136.6 139.5 136.5 141.6
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
Second
Third Quarter Quarter
1999 1998 1999
Contract Drilling
Average Day Rates:
North America Jackups $16,499 $38,261 $17,109
Europe Jackups 37,050 98,675 44,589
Asia Pacific Jackups 42,574 54,391 44,983
Total Jackups 20,517 51,594 22,965
South America Barges 37,695 19,346 32,802
North America Platforms 21,860 27,032 23,229
Total $22,313 $42,014 $23,652
Utilization:
North America Jackups 95.7% 88.2% 88.2%
Europe Jackups 37.9% 89.1% 51.3%
Asia Pacific Jackups 42.2% 42.9% 36.9%
Total Jackups 74.0% 79.6% 71.0%
South America Barges 33.3% 100.0% 36.1%
North America Platforms 40.4% 89.6% 52.6%
Total 62.5% 84.7% 62.9%
Marine Transportation
Average Day Rates:
AHTS $13,563 $16,251 $12,476
Supply 2,480 6,040 2,625
Mini-Supply 1,761 3,978 2,084
Total $4,108 $7,004 $4,209
Utilization:
AHTS 62.2% 72.6% 73.0%
Supply 77.8% 81.6% 72.0%
Mini-Supply 21.6% 60.7% 23.2%
Total 63.2% 75.9% 61.3%
ENSCO INTERNATIONAL INCORPORATED
SEGMENT RESULTS
(Unaudited)
(In millions)
Second
Third Quarter Quarter
1999 1998 1999
Operating Revenues:
Contract Drilling $67.7 $161.7 $71.0
Marine Transportation 8.7 18.1 8.4
Total Segment Revenues 76.4 179.8 79.4
Operating Expenses:*
Contract Drilling 54.0 70.0 54.3
Marine Transportation 8.1 10.5 8.0
Total Segment Expenses 62.1 80.5 62.3
Operating Margins:*
Contract Drilling 13.7 91.7 16.7
Marine Transportation 0.6 7.6 0.4
Total Segment Margins $14.3 $99.3 $17.1
* Exclusive of depreciation and amortization and general and
administrative expenses.
SOURCE: ENSCO International Incorporated |
