Ensco Releases 2001 Results
|Thursday, January 24, 2002
ENSCO International Incorporated reported net income of $29.9 million ($.22 per diluted share) on revenues of $179.1 million for the three months ended December 31, 2001, compared to net income of $42.7 million ($.31 per diluted share) on revenues of $171.2 million for the three months ended December 31, 2000. The Company's results for the fourth quarter of 2001 included non-recurring, after tax income of $2.8 million ($.02 per diluted share) related to its Venezuelan operations. As previously reported, the contract for the ENSCO III barge drilling rig was cancelled and the Company received a lump sum payment for early termination. This income was partially offset by a fourth quarter charge related to two barge drilling rigs, the ENSCO V and ENSCO VI, which the Company plans to sell. Excluding these non-recurring items, the Company's net income for the fourth quarter of 2001 was $27.1 million ($.20 per diluted share). For the year ended December 31, 2001, ENSCO reported net income of $207.3 million ($1.50 per diluted share) on revenues of $817.4 million, compared to net income of $85.4 million ($.61 per diluted share) on revenues of $533.8 million for the year ended December 31, 2000. Net income for the year 2001 included $12.7 million of after tax income ($.09 per diluted share) related to the cancellation of the ENSCO III contract and the charge for the ENSCO V and ENSCO VI as mentioned above, as well as income from cancellation of a second Venezuelan barge drilling contract reported earlier in the year. Excluding these non-recurring items, the Company's net income for 2001 was $194.6 million ($1.41 per diluted share). The average day rate for ENSCO's jackup rig fleet was $45,500 for the fourth quarter of 2001, compared to $43,100 in the year earlier period. Day rates were higher in Europe and Asia Pacific, but these increases were largely offset by lower day rates in the Gulf of Mexico. Utilization for the Company's jackup fleet decreased to 77% in the most recent quarter, from 91% in the fourth quarter of 2000, due principally to a decline in drilling activity in the Gulf of Mexico and to an increase in scheduled shipyard downtime on several rigs. In the Company's marine transportation segment, average day rates for the Company's marine fleet increased to $7,500 in the fourth quarter of 2001 from $6,400 in the year earlier period. Utilization for the marine fleet improved to 78% in the quarter ended December 31, 2001, from 75% in the fourth quarter of 2000. Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on the Company's recent results and outlook, "Our results in the most recent quarter reflect steady activity in Europe, the Pacific Rim and the Middle East, and continued softness in the Gulf of Mexico. We are responding to bid inquiries in our Asia Pacific Business Unit, and are currently mobilizing one jackup rig to the Middle East that is committed under a long-term contract, and two other jackup rigs to the Pacific Rim that will be available for work in the second and fourth quarters of this year. "In the Gulf of Mexico, seventeen of our nineteen jackup rigs are committed, and two are in the shipyard for enhancement, with one of the two rigs due to return to service within a week and the second by the end of February. During the first quarter of the year, we will have an additional two of our Gulf of Mexico jackup rigs enter the shipyard for upgrade, and will likely average two rigs in the shipyard over the course of 2002. We do not anticipate any meaningful improvement in Gulf of Mexico day rates until the second half of 2002. "During the first quarter, we will also have two rigs in the shipyard in Asia Pacific and two in Europe, for enhancement and/or scheduled regulatory mandated considerations. As a result of the continued softness in the Gulf, and due to the scheduled shipyard downtime relative to several of our rigs mentioned above, we expect our first quarter earnings per share to be in the range of $.05 to $.10."