Ensco III Contract Terminated Early
|Thursday, November 29, 2001
ENSCO International Incorporated announced that one of its subsidiaries has received a notice of early termination for the ENSCO III, a barge drilling rig under long-term contract with Chevron in Venezuela. As a result of the termination, ENSCO will receive $13.5 million of revenue, which represents the present value of the cash flow that the Company would have earned over the remaining contract term. The early termination payment is expected to be received in the fourth quarter, and will result in a gain of approximately $8.8 million after tax, or $.07 per diluted share.