Ensco reported net income of $299.8 million ($2.14 per diluted share) on revenues of $622.1 million for the quarter ended December 31, 2008, as compared to $238.6 million ($1.66 per diluted share) on revenues of $517.7 million for the prior year quarter.
For the full year ended December 31, 2008, net income was $1,150.8 million ($8.11 per diluted share) on revenues of $2,450.4 million as compared to $992.0 million ($6.73 per diluted share) on revenues of $2,088.6 million for the prior year. Full year results include a loss from discontinued operations of $9.2 million ($0.06 per diluted share) related to the total loss of ENSCO 74, a Gulf of Mexico jackup rig that was presumed sunk in the aftermath of Hurricane Ike in September 2008.
The average day rate for Ensco's 43-rig jackup fleet for the quarter ended December 31, 2008, increased 14% to $160,000, as compared to $140,600 in the prior year quarter. Utilization of the Company’s jackup fleet was 95% in the fourth quarter of 2008 compared to 88% in the fourth quarter of 2007.
Dan Rabun, Chairman, President and Chief Executive Officer, commented on the Company's results, deepwater initiative and outlook: "2008 was another excellent year for Ensco, both in terms of our record financial results and our outstanding safety record. Our employees are to be commended for their significant contributions in both areas.
"We expect to begin realizing the benefit of our significant deepwater investment starting in the second quarter of 2009. The first of our seven new ENSCO 8500 Series® ultra-deepwater semis, ENSCO 8500, is currently undergoing deepwater sea trials prior to the anticipated commencement of operations in early April. With the expected addition of all seven new 8500 Series deepwater rigs to our fleet by 2012, we anticipate that our deepwater segment will contribute approximately one-third of our revenue once all the new rigs are delivered and operational.
"Our balance sheet remains strong, with $790 million in cash and only $292 million of debt as of December 31, 2008.
"We are beginning to be impacted by lower oil and gas prices, tight credit markets and the global recession. There is no question that 2009 will be a challenging year and that jackup rigs, including some of our own, will be without contracts for some portion of the year. Despite the challenging outlook, we believe our strong balance sheet, favorable contract backlog, conservative approach to internally funding our new rig construction program and the growing contribution from our deepwater fleet will provide Ensco a competitive advantage over the next several years."
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