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Gold/Mining/Energy : Ensco International Inc. (ESV) -- Ignore unavailable to you. Want to Upgrade?

To: steve harris who wrote (1664)	1/28/1999 1:09:00 PM
From: Howard Frederick	Respond to of 2005

ENSCO Reports Record Year Results DALLAS, Jan. 27 /PRNewswire/ -- ENSCO International Incorporated (NYSE: ESV) reported record earnings for 1998. For the year ended December 31, 1998, ENSCO's net income was $253.9 million, or $1.81 per diluted share, on revenues of $813.2 million, as compared to net income of $233.9 million, or $1.64 per diluted share, on revenues of $815.1 million for the year earlier period. For the fourth quarter of 1998, ENSCO reported net income of $27.1 million, or $.20 per diluted share, on revenues of $153.0 million, as compared to net income of $77.6 million, or $.54 per diluted share, on revenues of $234.8 million for the same period in 1997. Softening market conditions contributed to a decline in day rates and utilization for both the Company's offshore rig and marine vessel fleets in the fourth quarter of 1998. The average day rate for the Company's jackup fleet was approximately $38,400 in the fourth quarter of 1998, as compared to $59,400 for the year earlier period. Utilization for the Company's jackup fleet decreased to 89% in the most recent quarter from 94% in the fourth quarter of 1997. In the Company's marine transportation segment, average day rates for the Company's marine fleet decreased to approximately $5,100 in the most recent quarter from $8,700 in the fourth quarter of 1997. Utilization for ENSCO's marine fleet decreased to 77% in the fourth quarter of 1998 from 90% in the year earlier quarter. Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on the Company's recent results and outlook, "Although 1998 was a record year for the Company, our results trended lower during the course of the year as activity levels deteriorated in response to lower oil prices. The Company ended 1998 in excellent financial condition, with $330.1 million in cash and a debt to total capitalization ratio of approximately 23%. Although we are positive on the long term prospects for ENSCO, we remain very cautious about the outlook for 1999 given the significant cutbacks in oil company expenditures announced to date. In response to the current slowdown in activity, we will stack a number of our international rigs that do not have good prospects for suitable contracts in the near term. Two jackup rigs in Asia and four barge drilling rigs that were recently released in Venezuela are currently cold stacked. Utilization of our Gulf of Mexico jackup rigs was 94% in the fourth quarter of 1998, and we currently have no plans to stack any of these rigs. In our marine transportation segment, five of ENSCO's thirty-six vessels are currently cold stacked pending improvement in market conditions. With regard to our stock repurchase program, we purchased an additional 0.5 million shares in the fourth quarter of 1998 at an average cost of $9.37 per share. Since we initiated the program in June 1998, we have purchased a total of 5.5 million shares at an average cost of $13.50 per share. 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, 1997, and the Company's reports on Form 10-Q for the quarters ended March 31, 1998, June 30, 1998, and September 30, 1998. 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. ******************************************************************** The rest of the press release is financial info. It is available in PR Newswire.