ENSCO's net income for the first nine months of 2003 was $81.8 million ($0.55 per diluted share) on revenues of $591.6 million, compared to net income of $70.0 million ($0.50 per diluted share) on revenues of $455.3 million for the prior year's first nine month period. Income from continuing operations was $80.8 million ($0.54 per diluted share) for the first nine months of 2003 compared to $66.4 million ($0.48 per diluted share) for the first nine months of 2002.
The average day rate for ENSCO's jackup rig fleet was $47,800 for the third quarter of 2003, little changed from the $48,000 average day rate in the year earlier quarter. Utilization for the Company's jackup fleet increased to 88% in the most recent quarter, up from 83% in the third quarter of 2002. Excluding rigs in a shipyard for regulatory inspection or enhancement work, jackup utilization was 94% in the most recent quarter, compared to 91% in the year earlier period.
Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on the Company's current markets and outlook: "We have seen steady improvement in Gulf of Mexico day rates, most notably for the larger, more capable jackup rigs. As cautioned in our July earnings release, North Sea day rates have softened, and little improvement is anticipated until 2004. We are currently experiencing a lull in Asia Pacific activity as 2003 programs are being completed. Four Asia Pacific jackup rigs are currently between contracts, and will undergo minor shipyard remedial and/or contract preparation work. A fifth rig will enter a shipyard during the fourth quarter. Two of these rigs are scheduled to commence new term contracts later this year upon completion of that work. We continue to anticipate Asia Pacific activity levels to be fairly robust in 2004.
"Our fleet renewal program continues. In North America, ENSCO 82 remains in a shipyard for a major upgrade, with expected completion in mid-November of this year. We expect the rig to be contractually committed upon completion of the upgrade project. ENSCO 68 is scheduled to enter a shipyard for major enhancement before year-end, and ENSCO 67 is scheduled to follow in early March of 2004. With regard to more limited projects, ENSCO 60 remains in a shipyard until mid-December, and ENSCO 55 is scheduled to follow for an estimated three month stay. As indicated above, we will soon have five Asia Pacific rigs in shipyards. ENSCO 50 entered a shipyard in September, ENSCO 53 in October, and ENSCO 54 will follow in November. The three rigs are scheduled for delivery in December or early January, and are bid on a number of term contracts commencing in the first quarter of 2004. ENSCO 97 and ENSCO 94 are also undergoing minor shipyard work in preparation for term contracts which commence in November and December, respectively.
"We expect the improved market conditions in the Gulf of Mexico to be offset by softness in the North Sea and Asia Pacific and, when also considering scheduled shipyard downtime, we anticipate fourth quarter 2003 results to be approximately the same as third quarter results."
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