ENSCO's net income was $64.3 million ($0.43 per diluted share) on revenues of $558.8 million for the nine months ended September 30, 2004, compared to net income of $81.8 million ($0.55 per diluted share) on revenues of $584.5 million for the nine months ended September 30, 2003.
The average day rate for ENSCO's operating jackup rig fleet was $54,800 for the third quarter of 2004, compared to $48,400 in the prior year quarter. Utilization for the Company's jackup fleet decreased to 82% in the most recent quarter, from 88% in the third quarter of 2003. Excluding rigs in a shipyard for contract preparation, regulatory inspection, repair and enhancement, ENSCO's jackup utilization was 91% in the most recent quarter, compared to 94% in the year earlier period.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on the Company's outlook and markets: "We are encouraged by stronger global activity levels and day rates. In the third quarter, we realized day rate improvement from year ago levels in all three of our major jackup markets, with a 33% improvement in average day rates for our North America jackups being the most significant. All of our North Sea jackup rigs have returned to service, as has our deepwater semisubmersible rig in the Gulf of Mexico, the ENSCO 7500.
"In September, one of our Gulf of Mexico jackup rigs, ENSCO 64, was severely damaged during Hurricane Ivan. A platform rig, ENSCO 25, also sustained damage during the storm. We are still in the process of assessing the full extent of damage to both rigs. The contract on ENSCO 64 was terminated in mid-September while the contract on ENSCO 25 reverted to a standby rate while repairs are undertaken over the remainder of 2004.
"With regard to our rigs that were recently relocated to Southeast Asia and the Middle East, work continues on ENSCO 67 in Southeast Asia with completion scheduled for the second quarter of 2005. In the Middle East, we are nearing completion of a living-quarters upgrade on ENSCO 88 and the rig will soon commence a contract in Qatar. We expect ENSCO 95 to commence work in the area during December 2004, following completion of enhancement and life extension work.
"We continue enhancement and life extension projects on our Gulf of Mexico fleet, with ENSCO 68 now in a shipyard for a major upgrade with completion anticipated by the end of this month. We will likely defer our previously scheduled major upgrade of ENSCO 87 until we make a final determination regarding the future of ENSCO 64. With regard to more limited shipyard projects, we anticipate that the upgrade of ENSCO 84 will be complete by mid- January. ENSCO 99 is scheduled to enter a shipyard next month for approximately four months of enhancement and life extension work, likely to be followed by ENSCO 89 and ENSCO 86 in 2005.
"Construction of our two new ultra high-specification jackups, ENSCO 106 and ENSCO 107, continues in a Singapore shipyard. We anticipate delivery of ENSCO 106, our 25% owned joint venture rig, by year-end and after commissioning, the rig should be available for work early in the first quarter of 2005. ENSCO 107 is scheduled for delivery in December 2005.
"Despite the impact of Hurricane Ivan, our third quarter results exceeded expectations, and reflect the improvement we anticipated entering the second half of the year. We expect this positive trend to continue into the fourth quarter."
Most Popular Articles
From the Career Center
Jobs that may interest you