For the year ended December 31, 2005, ENSCO's net income was $294.2 million ($1.93 per diluted share) on revenues of $1,046.9 million, compared to net income of $102.8 million ($0.68 per diluted share) on revenues of $740.6 million for the year ended December 31, 2004. Income from continuing operations for the year ended December 31, 2005 was $283.9 million ($1.86 per diluted share).
The average day rate for ENSCO's operating jackup rig fleet for the quarter ended December 31, 2005, increased by 49% to $85,750, compared to $57,500 in the prior year quarter. Utilization of the Company's jackup fleet increased slightly to 87% in the most recent quarter, up from 86% in the quarter ended December 31, 2004. Excluding rigs in a shipyard for contract preparation, regulatory inspection and enhancement, ENSCO's jackup utilization was 96% in the quarter ended December 31, 2005, virtually the same as in the prior year quarter.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on the Company's current results and outlook: "Fourth quarter and annual earnings reached all-time record highs for the Company. The quarter was our sixth successive quarter of earnings improvement. Jackup day rates increased from third quarter levels in all of our major markets, most notably in North America.
"Two of our Gulf of Mexico jackup rigs, ENSCO 86 and ENSCO 87, are currently in shipyards for enhancement and life extension work, and are scheduled for redelivery in April and March 2006, respectively. Redelivery of these two rigs will substantially complete our ten-year, $1.3 billion rig enhancement program. ENSCO 69 is in a shipyard for contract preparation with expected redelivery in March 2006, when it will mobilize to Venezuela for a term contract. ENSCO 7500 also experienced downtime in the fourth quarter in preparation for a new contract, and recommenced work in early February.
"In Asia Pacific, we recently took delivery of our new ultra-high specification jackup, ENSCO 107, which will soon commence a contract in Southeast Asia, with follow-on commitments through mid-summer 2008. We are also completing contract preparatory work on ENSCO 56, which is scheduled to commence a term contract in New Zealand in early March.
"Construction continues on our new ultra-high specification jackup rig, ENSCO 108, with delivery scheduled for the second quarter of 2007. ENSCO 108 is already committed for work in Southeast Asia commencing in April 2007.
"We recently announced construction of our third ultra-deepwater semisubmersible rig, ENSCO 8501. ENSCO 8501, which is scheduled for delivery in the second quarter of 2009, is being built against a firm three and one half year contract with two large independent oil companies. This is our second announcement for a new ultra-deepwater semisubmersible rig within the last six months. Construction of the first ENSCO 8500 Series(TM) rig, ENSCO 8500, continues on schedule with delivery anticipated in late May 2008. ENSCO 8500 is being built against a firm four-year contract with three large independent oil companies.
"Looking ahead, the offshore drilling markets continue to improve. Rig availability remains limited, with operating companies contracting rigs well in advance of requirements. Increased operating days resulting from completion of our enhancement program, along with commencement of ENSCO 107 operations, are expected to add meaningfully to our 2006 results.
"With the current robust market, the additions to our fleet, and the announced expansion of our management team, these are exciting times for ENSCO."
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