DALLAS--(BUSINESS WIRE)--April 24, 2008--ENSCO International
Incorporated (NYSE: ESV) reported net income increased by 17% in the
quarter ended March 31, 2008, to $272.0 million ($1.90 per diluted
share) on revenues of $580.3 million, as compared to net income of
$232.3 million ($1.54 per diluted share) on revenues of $514.1 million
for the quarter ended March 31, 2007.
The average day rate for ENSCO's 44-jackup rig fleet for the
quarter ended March 31, 2008, increased to $142,500, as compared to
$133,200 in the prior year quarter. Utilization of the Company's
jackup rig fleet was at 95% in the first quarter of 2008 compared to
93% in the first quarter of 2007.
Dan Rabun, Chairman, President and Chief Executive Officer,
commented on the Company's results, outlook and deepwater initiative:
"Our record first quarter operating performance was largely attributed
to higher day rates for our 31-rig international jackup fleet and our
deepwater semisubmersible rig. The average day rate increased by 19%
for our international jackup rig fleet and by 43% for our deepwater
semisubmersible rig over first quarter 2007 levels.
"We completed a scheduled enhancement project on ENSCO 93 during
the first quarter, and the rig has returned to service in the Gulf of
Mexico. We do not have any other rig enhancement projects scheduled
for 2008, although such work may be required if any of our rigs are
repositioned to other geographic locations. Under these circumstances,
we anticipate a significant reduction in shipyard days in 2008 (63
days) as compared to the 442 and 491 days incurred in 2007 and 2006,
respectively.
"We are nearing completion of the first of our ENSCO 8500
Series(R) ultra-deepwater semisubmersible rigs. ENSCO 8500 is expected
to be delivered late in the third quarter of 2008 and we anticipate
commencing drilling operations in the U.S. Gulf of Mexico by mid-first
quarter 2009 following completion of rig commissioning, mobilization
and final outfitting. The other three 8500 Series rigs are currently
scheduled for delivery in Singapore in the first and fourth quarters
of 2009 (ENSCO 8501 and ENSCO 8502, respectively) and in the third
quarter of 2010 (ENSCO 8503). With the announcement of the letter of
intent for ENSCO 8503 at a rate of $510,000 per day with a primary
term of two years, all four rigs are committed for multi-year
operations in the Gulf of Mexico.
"We continually evaluate construction of additional deepwater rigs
to meet the unprecedented demand for deepwater drilling. I am pleased
to announce that our Board of Directors has authorized construction of
an additional 8500 Series rig at a cost of approximately $515 million
with a delivery date in the second half of 2011. Subject to
negotiation of a mutually acceptable shipyard contract, it is
contemplated that the new rig, to be named ENSCO 8504, will be the
fifth in the series to be constructed by Keppel FELS of Singapore.
"Looking forward to the remainder of the year, we already have
contracted virtually all of our international jackup rig days for 2008
and are now having discussions with customers concerning programs for
2009 and beyond. We also are seeing improvement in backlog and day
rates for our 13-rig U.S. Gulf of Mexico jackup fleet. As a result, we
remain very positive about our prospects for 2008. With the planned
expansion of our deepwater fleet and continued strength in markets for
our premium jackups, we believe we are well positioned for future
growth."
Statements contained in this news release that state the Company's
or management's intentions, hopes, beliefs, expectations,
anticipations, projections, confidence, schedules, 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 future earnings and financial
performance expectations, trends in day rates, utilization or rig
relocations, future rig rates or utilization, rig enhancement
projections, shipyard construction or work completion, and other
contract or letter of intent commitments, including new rig
commitments, the period of time and number of rigs that will be in a
shipyard for enhancement or construction, scheduled delivery dates for
new rigs, scheduled commencement dates for new contracts, rig
relocations, market trends, expectations, outlook, projections or
conditions for 2008 and beyond. It is important to note that our
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, including changes in rig supply and demand or new
technology, (ii) cyclical nature of the industry, (iii) worldwide
expenditures for oil and gas drilling, (iv) operational risks,
including hazards created by severe storms and hurricanes, (v) risks
associated with offshore rig operations or rig relocations in general,
and in foreign jurisdictions in particular, (vi) renegotiation,
nullification, or breach of contracts or letters of intent with
customers or other parties, including failure to negotiate definitive
contracts following announcements or receipt of letters of intent,
(vii) changes in the dates our rigs undergoing shipyard construction
work, repairs or enhancement will enter a shipyard, be delivered,
return to or enter service, (viii) changes in the dates new contracts
actually commence, (ix) risks inherent to domestic and foreign
shipyard rig construction, rig repair or rig enhancement, including
unexpected rig enhancement project delays in equipment delivery and
engineering or design issues following shipyard delivery, (x)
unavailability of transport vessels to relocate rigs, (xi)
environmental or other liabilities, risks, or losses including
hurricane related equipment damage, loss or wreckage or debris removal
in the U.S. Gulf of Mexico, that may arise in the future which are not
covered by insurance or indemnity in whole or in part, (xii) the
impact of current and future laws and government regulation affecting
the oil and gas industry in general or our operations in particular,
including taxation as well as repeal or modification of same, (xiii)
political and economic uncertainty, (xiv) limited availability of
economic insurance coverage for certain perils such as hurricanes in
the Gulf of Mexico or removal of wreckage or debris, (xv) self-imposed
or regulatory limitations on jackup rig drilling locations in the Gulf
of Mexico during hurricane season, (xvi) our ability to attract and
retain skilled or other personnel, (xvii) excess rig availability or
supply resulting from delivery of new drilling units, (xviii) heavy
concentration of our rig fleet in premium jackups, (xix)
expropriation, nationalization, deprivation, terrorism or military
action impacting our operations, assets or financial performance, (xx)
the outcome of litigation, legal procedures, investigations or claims,
and (xxi) other risks as described from time to time as Risk Factors
and otherwise in the Company's SEC filings. Copies of such SEC filings
may be obtained at no charge by contacting our investor relations
department at 214-397-3045 or by referring to the investor relations
section of our website at http://www.enscous.com. All information in
this press release is as of April 24, 2008. 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 conference call at 10:00 a.m. Central Time on
Thursday April 24, 2008, to discuss its first quarter 2008 results.
The call will be broadcast live over the Internet at www.enscous.com.
Interested parties also may listen to the call by dialing (719)
325-4804. We recommend that participants call five to ten minutes
before the scheduled start time.
A replay of the conference call will be available by phone for 48
hours after the call by dialing (719) 457-0820 (access code 8764916).
A transcript of the call and access to a replay or MP3 download can be
found on-line on the ENSCO web site www.enscous.com in the Investors
Section.
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share data)
(Unaudited)
Three Months Ended
March 31,
-------------------
2008 2007
--------- ---------
OPERATING REVENUES $ 580.3 $ 514.1
OPERATING EXPENSES
Contract drilling 190.7 162.8
Depreciation 47.5 45.1
General and administrative 12.7 16.0
--------- ---------
250.9 223.9
--------- ---------
OPERATING INCOME 329.4 290.2
OTHER INCOME (EXPENSE)
Interest income 5.0 6.2
Interest expense, net - (1.1)
Other, net (0.5) 4.5
--------- ---------
4.5 9.6
--------- ---------
INCOME BEFORE INCOME TAXES 333.9 299.8
PROVISION FOR INCOME TAXES 61.9 67.5
--------- ---------
NET INCOME $ 272.0 $ 232.3
========= =========
EARNINGS PER SHARE
Basic $ 1.90 $ 1.55
Diluted $ 1.90 $ 1.54
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING
Basic 142.8 149.9
Diluted 143.5 150.7
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
March 31, December 31,
2008 2007
------------ ------------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 664.9 $ 629.5
Accounts receivable, net 421.3 383.2
Other 118.2 116.6
------------ ------------
Total current assets 1,204.4 1,129.3
PROPERTY AND EQUIPMENT, NET 3,437.5 3,358.9
GOODWILL 336.2 336.2
LONG-TERM INVESTMENTS 74.9 -
OTHER ASSETS, NET 142.0 144.4
------------ ------------
$ 5,195.0 $ 4,968.8
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 423.0 $ 484.4
Current maturities of long-term debt 20.3 19.1
------------ ------------
Total current liabilities 443.3 503.5
LONG-TERM DEBT 291.4 291.4
DEFERRED INCOME TAXES 356.9 352.0
OTHER LIABILITIES 72.5 69.9
STOCKHOLDERS' EQUITY 4,030.9 3,752.0
------------ ------------
$ 5,195.0 $ 4,968.8
============ ============
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
(Unaudited)
Three Months
Ended
March 31,
-----------------
2008 2007
-------- --------
OPERATING ACTIVITIES
Net income $ 272.0 $ 232.3
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 47.5 45.1
Changes in operating assets and liabilities (191.5) (7.4)
Other 23.2 9.7
-------- --------
Net cash provided by operating activities 151.2 279.7
-------- --------
INVESTING ACTIVITIES
Additions to property and equipment (116.2) (106.0)
Other 1.0 1.6
-------- --------
Net cash used in investing activities (115.2) (104.4)
-------- --------
FINANCING ACTIVITIES
Repurchase of common stock (0.1) (127.8)
Cash dividends paid (3.6) (3.8)
Proceeds from exercise of stock options 3.1 9.8
Other 1.8 1.1
-------- --------
Net cash provided by (used in) financing
activities 1.2 (120.7)
-------- --------
Effect of exchange rate fluctuations on cash and
cash equivalents (1.8) -
-------- --------
INCREASE IN CASH AND CASH EQUIVALENTS 35.4 54.6
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 629.5 565.8
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 664.9 $ 620.4
======== ========
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
(Unaudited)
Fourth
First Quarter Quarter
-------------------
2008 2007 2007
--------- --------- ---------
Contract drilling
----------------------------------------
Average day rates
Jackup rigs
Asia Pacific $143,303 $120,728 $136,768
Europe / Africa 213,123 182,536 212,844
North and South America 89,361 117,858 88,586
--------- --------- ---------
Total jackup rigs 142,524 133,238 140,851
Semisubmersible rig - N. America 279,962 195,740 201,008
Barge rig - Asia Pacific 72,800 56,509 72,997
--------- --------- ---------
Total $144,407 $132,843 $140,755
========= ========= =========
Utilization
Jackup rigs
Asia Pacific 97% 99% 99%
Europe / Africa 99% 95% 89%
North and South America 92% 85% 75%
--------- --------- ---------
Total jackup rigs 95% 93% 89%
Semisubmersible rig - N. America 96% 97% 97%
Barge rig - Asia Pacific 92% 100% 100%
--------- --------- ---------
Total 95% 93% 89%
========= ========= =========
CONTACT: ENSCO International Incorporated
Richard LeBlanc, 214-397-3011
SOURCE: ENSCO International Incorporated
