Ensco's Earnings Fall in Second Quarter

ENSCO International reported that their second-quarter net income fell by over 60 percent as high inventories of oil and natural gas cut drilling activity, lowering rig rates and utilization. ENSCO, based in Dallas, reported second-quarter net income of $23.3 million, or 17 cents per share, down from the $61.2 million, or 44 cents per share, earned in last year's second quarter.

Analysts polled by market research firm Thomson First Call had expected the company to earn between 12 cents per share and 15 cents per share in the quarter, with a mean estimate of 13 cents per share.

ENSCO said that the average day rate for a jackup, a type of retractable leg offshore drilling rig, during the quarter fell about 20 percent to $42,100, while utilization was 87 percent against 91 percent a year before.

ENSCO said it expects to earn between 18 cents per share and 23 cents per share in the third quarter, including 2 cents per share from its proposed acquisition of Chiles Offshore Inc., which owns and operates the newest jackup fleet in the business. Analysts have been estimating 22 cents per share for the third quarter.