ENSCO Reports Fourth Quarter and Full Year 2004 Results
ENSCO International Incorporated (NYSE: ESV) reported net income of $38.5 million ($0.26 per diluted share) on revenues of $209.2 million for the three months ended December 31, 2004, compared to net income of $26.5 million ($0.18 per diluted share) on revenues of $196.7 million for the three months ended December 31, 2003.
ENSCO's net income was $102.8 million ($0.68 per diluted share) on revenues of $768.0 million for the year ended December 31, 2004, compared to net income of $108.3 million ($0.72 per diluted share) on revenues of $781.2 million for the year ended December 31, 2003.
The average day rate for ENSCO's jackup rig fleet was $57,500 for the fourth quarter of 2004, compared to $49,400 in the prior year quarter. Utilization for the Company's jackup fleet increased slightly to 84% in the most recent quarter, up from 83% in the fourth quarter of 2003. Excluding rigs in a shipyard for contract preparation, regulatory inspection, repair and enhancement, ENSCO's jackup utilization was 94% in the most recent quarter, compared to 90% in the prior year quarter.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on the Company's outlook and markets: "As we begin 2005, we see continuing strength in the offshore drilling market. We are experiencing improvement in rate structure, and increased contract backlog on a global basis. Our Asia and Pacific Rim market is showing particular strength. Two of our jackup rigs recently secured long-term commitments in Saudi Arabia, at rates significantly improved over prior commitments.
"Rate structures are improving in Europe & Africa, with recent fixtures for standard North Sea jackup work in the range of $70,000 to $75,000 per day. As anticipated, several of our jackup rigs in the region will experience downtime during the first half of 2005 as they undergo regulatory inspection, upgrade and repair, and/or await commencement of new commitments. This could result in approximately 100 idle rig days in the first quarter. We currently expect all of our Europe & Africa rigs to be in service by the middle of the second quarter, with most of the rigs committed well into the second half of 2005.
"Rate structures for our Gulf of Mexico fleet continue to show improvement. Three of our 250' water depth capable jackup rigs are now committed at approximately $50,000 per day, and leading edge day rates for higher specification jackups are approximately $70,000. We have continuing commitments for our deepwater semisubmersible rig, ENSCO 7500, with rates increasing to approximately $160,000 per day in the second quarter, and approximately $185,000 by the third quarter, when the rig will commence a two- year contract.
"We continue to make good progress with our fleet renewal program, and anticipate substantial completion by the end of 2005. We have one major enhancement project, ENSCO 67, now underway in Singapore, with re-delivery of the rig currently expected in June 2005, whereupon the rig is contractually committed. Two of our Gulf of Mexico jackups, ENSCO 84 and ENSCO 99, are currently in a shipyard for life extension and enhancement, with estimated work completion in late February and late April, respectively. Only one major upgrade (ENSCO 87 commencing in March) and two minor projects (ENSCO 89 commencing in April and ENSCO 86 commencing in July) remain relative to our Gulf of Mexico fleet in 2005. ENSCO 64, which was severely damaged during Hurricane Ivan last September, remains in a shipyard pending completion of damage assessment, which will determine whether the rig will be declared a constructive total loss. One of our platform rigs, ENSCO 25, which also sustained damage during the hurricane, is currently expected to return to service by the end of this month.
"We are pleased with developments as we close 2004 and enter 2005, and are
positive regarding our prospects for the remainder of this year."
Manages 64 Offshore Rigs
- Ensco Acquires Atwood Oceanics, Lays Off Staff (Oct 10)
- Lamprell to Compensate Ensco for Delay in Delivery of ENSCO 140 (Aug 29)
- Lamprell Delays Delivery of Jackup to Mid-August Due to Technical Issue (Jul 27)