ENSCO's net income for the first six months of 2003 was $54.0 million ($0.36 per diluted share) on revenues of $392.0 million, compared to net income of $39.5 million ($0.29 per diluted share) on revenues of $276.1 million for the prior year's first six month period. The six month period results of 2003 include income from discontinued operations of $0.9 million ($0.01 per diluted share) related to the Company's marine transportation segment. Income from continuing operations for the six months ended June 30, 2003, was $53.1 million ($0.35 per diluted share) compared to $37.4 million ($0.27 per diluted share) in the year earlier six month period.
The average day rate for ENSCO's active jackup rig fleet was $46,900 for the second quarter of 2003, compared to $42,100 in the year earlier quarter. Utilization for the Company's jackup fleet increased to 88% in the most recent quarter, up from 85% in the second quarter of 2002. Excluding rigs in a shipyard for regulatory, inspection, and enhancement initiatives, jackup utilization was 96% in the most recent quarter, compared to 94% in the year earlier period.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on the Company's current markets and outlook: "Gulf of Mexico jackup rig demand is little changed over the last several months, with supply continuing to decrease as some rigs depart for international service. We are beginning to see some improvement in the Gulf of Mexico jackup day rates, although this primarily applies to the larger, more capable jackup rigs. The North Sea jackup market is sluggish, with little term work now being bid, and day rates are beginning to soften. Two of our Europe/Africa jackup rigs may have some available time during the third quarter before commencing new contract commitments, with the remainder of our fleet in that jurisdiction committed into the fourth quarter of 2003. Asia Pacific remains firm, in terms of both utilization and day rates, with a good level of additional bid activity.
"With respect to our continuing fleet renewal program, in North America, ENSCO 82 remains in a shipyard for major upgrade, with expected completion early in the fourth quarter. ENSCO 68 will enter a shipyard for major enhancement in late 2003. With respect to more limited projects, ENSCO 60 is now in a shipyard until late in the year, and ENSCO 55 is scheduled to follow. In Asia Pacific, ENSCO 57 is currently in a shipyard and due for delivery in August. During the third quarter, ENSCO 97 will also be in a shipyard for approximately 30 days.
"Given expected market softness in the North Sea over the remainder of 2003, muted improvement in Gulf of Mexico day rates, and scheduled shipyard downtime, we expect third quarter 2003 income from continuing operations to be little changed from the $0.18 per diluted share realized in the second quarter of 2003."
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