ENSCO International Reports Record First Quarter 2007 Results
ENSCO International Incorporated (NYSE: ESV) reported net income increased by 55% in the quarter ended March 31, 2007, to $232.3 million ($1.54 per diluted share) on revenues of $514.1 million, as compared to net income of $149.8 million ($0.97 per diluted share) on revenues of $381.6 million for the quarter ended March 31, 2006.
The average day rate for ENSCO's jackup rig fleet for the quarter ended March 31, 2007, increased by 29% to $133,200, as compared to $103,400 in the prior year quarter. Utilization of the Company's jackup fleet increased to 93% in the most recent quarter, as compared to 91% in the quarter ended March 31, 2006.
The Company repurchased 2.5 million shares of its common stock during the first quarter of 2007 at a total cost of $127.6 million, or an average price of $51.05 per share, as part of a $500 million share repurchase authorization. Under the program that commenced late in the first quarter of 2006, ENSCO has repurchased 6.0 million common shares at a total cost of $287.6 million, or an average price of $48.25 per share, through the first quarter of 2007.
Dan Rabun, President and Chief Executive Officer of ENSCO, commented on the Company's current results and outlook: "We are pleased to report another record quarter. Jackup day rates increased in all major markets, which contributed to the sequential and year-over-year improvement in our first quarter results. During the quarter, we completed construction of ENSCO 108, our tenth new ultra-high specification jackup added to our rig fleet since 1999. The rig will soon mobilize to Indonesia under a term commitment.
"Our three ongoing new rig construction projects are on schedule and within budget. Deliveries of ENSCO 8500 and ENSCO 8501, two ultra-deepwater semisubmersible rigs, are expected in the second quarter of 2008 and first quarter of 2009, respectively. Both rigs are being built against firm multi-customer long-term drilling contracts. ENSCO 8502, our third 8500 Series(TM) rig, is scheduled for delivery in late 2009.
"We expect to complete enhancement and international outfitting work on ENSCO 83 next month, and have elected to proceed with a similar project on another of our 250' Gulf of Mexico jackup rigs, ENSCO 93. The rig is expected to enter a shipyard in early June 2007 for approximately seven months of work. With the addition of the ENSCO 93 project, we estimate that we will incur approximately 350 shipyard days in 2007.
"We remain positive on our markets, and expect increasing international activity to continue to require additional rigs. ENSCO 105 is currently en route from the Gulf of Mexico to Tunisia to commence its 18-month contract, and we continue to evaluate other international opportunities.
"In the Gulf of Mexico, rates appear to have stabilized, although the dynamics of the market have not changed and visibility remains limited. With regard to the North Sea, we recently committed two jackup rigs at or close to leading edge day rates in continuation of programs that mature this summer. In the Asia Pacific market, we also committed two rigs in direct continuation of their current contracts at substantially higher rates.
"We expect 2007 will be another record year for ENSCO. Higher average day rates and an increase in rig operating days with the addition of ENSCO 108 should contribute to significant earnings improvement in 2007."
Manages 64 Offshore Rigs
- Ensco Acquires Atwood Oceanics, Lays Off Staff (Oct 10)
- Lamprell to Compensate Ensco for Delay in Delivery of ENSCO 140 (Aug 29)
- Lamprell Delays Delivery of Jackup to Mid-August Due to Technical Issue (Jul 27)