DALLAS, Jul 24, 2008 (BUSINESS WIRE) -- ENSCO International Incorporated (NYSE: ESV) reported net income
increased by 17% in the quarter ended June 30, 2008, to a record
$296.7 million ($2.07 per diluted share) on revenues of $637.1
million, as compared to net income of $254.4 million ($1.72 per
diluted share) on revenues of $548.6 million for the quarter ended
June 30, 2007.
For the six months ended June 30, 2008, net income increased to
$568.7 million ($3.97 per diluted share) on revenues of $1,217.4
million, as compared to net income of $486.7 million ($3.26 per
diluted share) on revenues of $1,062.7 million for the six months
ended June 30, 2007.
The average day rate for ENSCO's 44-rig jackup fleet for the
quarter ended June 30, 2008, increased to $148,200, as compared to
$142,900 in the prior year quarter. Utilization of the Company's
jackup fleet was 95% in the second quarter of 2008 compared to 93% in
the second quarter of 2007. The average day rate for the Company's
deepwater rig, ENSCO 7500, increased by 83% in the second quarter of
2008, to $365,500, and utilization of the rig increased slightly to
98% from 97% in the prior year quarter.
Dan Rabun, Chairman, President and Chief Executive Officer,
commented on the Company's results, strategic deepwater initiative and
outlook: "Increases in average day rates in all regions and asset
classes contributed to the sequential improvement in our second
quarter results, and to another record quarter.
"We continue to make good progress on our strategic objective of
expanding our deepwater fleet with the announcement of construction of
two additional ultra-deepwater semisubmersible rigs, to be named ENSCO
8504 and ENSCO 8505. The first of our six ENSCO 8500 Series(R) semis
now under construction, ENSCO 8500, is scheduled to depart from the
shipyard in Singapore during late September and to commence operations
in the Gulf of Mexico by mid-first quarter 2009 following completion
of rig commissioning, mobilization and final outfitting. The other
five 8500 Series rigs are currently scheduled for delivery in 2009
(ENSCO 8501), 2010 (ENSCO 8502 and ENSCO 8503), 2011 (ENSCO 8504), and
2012 (ENSCO 8505). The first four rigs are committed for multi-year
operations in the Gulf of Mexico. Although we only recently announced
construction of the ENSCO 8504 and ENSCO 8505, we are pleased with the
level of customer interest for these two rigs.
"Looking forward to the remainder of the year, we are seeing
improvement in backlog and day rates for our U.S. Gulf of Mexico and
North Sea jackup fleets, and expect a balanced market for our Asia
Pacific rigs. As a result, we anticipate that 2008 will be another
record year for ENSCO. With the planned expansion of our active
deepwater rig fleet commencing in 2009, and the expected continued
strength in markets for our premium jackups, we believe that we are
well positioned for continued 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.
Forward-looking statements include words or phrases such as
"anticipate," "believe," "estimate," "expect," "intend," "plan,"
"project," "could," "may," "might," "should," "will" and words and
phrases of similar import. The forward-looking statements include, but
are not limited to, statements regarding future operations, industry
trends or conditions and the business environment; statements
regarding future levels of, or trends in, day rates, utilization,
revenues, operating expenses, contract backlog, capital expenditures,
insurance, financing and funding; statements regarding future rig
construction (including construction in progress and completion
thereof), enhancement, upgrade or repair and the timing thereof;
future mobilization, relocation or other movement of rigs and the
timing thereof; future availability or suitability of rigs and the
timing thereof; and statements regarding the future financial
performance and growth of the company.
Numerous factors could cause actual results to differ materially
from those in the forward-looking statements, including: (i) industry
conditions and competition, including changes in rig supply and demand
or new technology,(ii) excess rig availability or supply resulting
from delivery of new drilling rigs,(iii) heavy concentration of our
current rig fleet in premium jackups, (iv) cyclical nature of the
industry, (v) worldwide expenditures for oil and gas drilling, (vi)
operational risks, including hazards created by severe storms and
hurricanes, (vii) risks associated with offshore rig operations or rig
relocations in general, and in foreign jurisdictions in particular,
(viii) 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, (ix) changes in the dates new contracts actually
commence, (x) changes in the dates our rigs will enter a shipyard, be
delivered, return to or enter service, (xi) risks inherent to domestic
and foreign shipyard rig construction, repair or enhancement,
including risks associated with concentration of our ENSCO 8500
Series(R) rig construction contracts in a single foreign shipyard,
unexpected delays in equipment delivery and engineering or design
issues following shipyard delivery, (xii) unavailability of transport
vessels to relocate rigs, (xiii) environmental or other liabilities,
risks or losses including hurricane related equipment damage, and loss
from 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, (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 drilling locations in the Gulf of Mexico during
hurricane season, (xvi) political and economic uncertainties, (xvii)
our ability to attract and retain skilled personnel, (xviii)
expropriation, nationalization, deprivation, terrorism or military
action impacting our operations, assets or financial performance,
(xix) outcome of litigation, legal proceedings, investigations or
claims, (xx) potential reduction in fair value of our auction rate
securities 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
July 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 July 24, 2008, to discuss its second 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)
325-4786. 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 9439249).
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 Six Months Ended
June 30, June 30,
------------------ ------------------
2008 2007 2008 2007
-------- --------- -------- ---------
OPERATING REVENUES $ 637.1 $ 548.6 $1,217.4 $1,062.7
OPERATING EXPENSES
Contract drilling (exclusive
of depreciation) 214.4 168.8 405.1 331.6
Depreciation 48.4 46.8 95.9 91.9
General and administrative 13.8 19.1 26.5 35.1
-------- --------- -------- ---------
276.6 234.7 527.5 458.6
-------- --------- -------- ---------
OPERATING INCOME 360.5 313.9 689.9 604.1
OTHER INCOME (EXPENSE)
Interest income 3.7 6.3 8.7 12.5
Interest expense, net - (0.8) - (1.9)
Other, net 3.1 2.3 2.6 6.8
-------- --------- -------- ---------
6.8 7.8 11.3 17.4
-------- --------- -------- ---------
INCOME BEFORE INCOME TAXES 367.3 321.7 701.2 621.5
PROVISION FOR INCOME TAXES 70.6 67.3 132.5 134.8
-------- --------- -------- ---------
NET INCOME $ 296.7 $ 254.4 $ 568.7 $ 486.7
======== ========= ======== =========
EARNINGS PER SHARE
Basic $ 2.08 $ 1.72 $ 3.99 $ 3.27
Diluted $ 2.07 $ 1.72 $ 3.97 $ 3.26
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING
Basic 142.7 147.6 142.7 148.8
Diluted 143.2 148.3 143.2 149.4
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
June 30, December 31,
2008 2007
------------ ------------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 531.6 $ 629.5
Accounts receivable, net 435.9 383.2
Other 98.1 116.6
------------ ------------
Total current assets 1,065.6 1,129.3
PROPERTY AND EQUIPMENT, NET 3,597.0 3,358.9
GOODWILL 336.2 336.2
LONG-TERM INVESTMENTS 70.0 -
OTHER ASSETS, NET 136.1 144.4
------------ ------------
$ 5,204.9 $ 4,968.8
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 222.3 $ 484.4
Current maturities of long-term debt 17.2 19.1
------------ ------------
Total current liabilities 239.5 503.5
LONG-TERM DEBT 282.8 291.4
DEFERRED INCOME TAXES 357.2 352.0
OTHER LIABILITIES 76.9 69.9
STOCKHOLDERS' EQUITY 4,248.5 3,752.0
------------ ------------
$ 5,204.9 $ 4,968.8
============ ============
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
(Unaudited)
Six Months Ended
June 30,
-----------------
2008 2007
-------- --------
OPERATING ACTIVITIES
Net income $ 568.7 $ 486.7
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation expense 95.9 91.9
Changes in operating assets and liabilities (284.8) (68.5)
Other 32.3 22.3
-------- --------
Net cash provided by operating activities 412.1 532.4
-------- --------
INVESTING ACTIVITIES
Additions to property and equipment (414.7) (290.3)
Other 4.4 3.2
-------- --------
Net cash used in investing activities (410.3) (287.1)
-------- --------
FINANCING ACTIVITIES
Repurchase of common stock (111.2) (277.9)
Proceeds from exercise of stock options 26.6 25.3
Reduction of long-term borrowings (10.5) (8.6)
Cash dividends paid (7.2) (7.5)
Other 5.1 4.7
-------- --------
Net cash used in financing activities (97.2) (264.0)
-------- --------
Effect of exchange rate fluctuations on cash and
cash equivalents (2.5) (0.1)
-------- --------
DECREASE IN CASH AND CASH EQUIVALENTS (97.9) (18.8)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 629.5 565.8
-------- --------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 531.6 $ 547.0
======== ========
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
(Unaudited)
First
Second Quarter Quarter
-------------------
2008 2007 2008
--------- --------- ---------
Contract drilling
----------------------------------------
Average day rates
Jackup rigs
Asia Pacific $152,906 $134,929 $143,303
Europe / Africa 217,710 195,211 213,123
North and South America 97,750 113,696 89,361
--------- --------- ---------
Total jackup rigs 148,214 142,895 142,524
Semisubmersible rig - N. America 365,496 200,188 279,962
Barge rig - Asia Pacific 72,132 65,788 72,800
--------- --------- ---------
Total $151,635 $143,153 $144,407
========= ========= =========
Utilization
Jackup rigs
Asia Pacific 91% 99% 97%
Europe / Africa 97% 100% 99%
North and South America 100% 82% 92%
--------- --------- ---------
Total jackup rigs 95% 93% 95%
Semisubmersible rig - N. America 98% 97% 96%
Barge rig - Asia Pacific 100% 80% 92%
--------- --------- ---------
Total 96% 93% 95%
========= ========= =========
ENSCO International Incorporated
Richard LeBlanc
214-397-3011
