ENSCO to Repurchase $500 Million in Company Common Stock
The ENSCO International has authorized the purchase of an additional $500 million of ENSCO common stock. The Company recently completed an initial $500 million stock repurchase program authorized by the Board in March 2006. Under the initial authorization, the Company purchased 9.5 million shares at an average price of $52.38 per share. Repurchases under the new authorization generally will be made in the open market or in privately negotiated transactions, subject to regulatory considerations and market conditions, and will be funded from ENSCO's available cash.
The ENSCO Board also declared a regular quarterly cash dividend of $0.025 per share of ENSCO common stock. The cash dividend will be paid on September 21, 2007, to stockholders of record on September 10, 2007.
Additionally, the Company expects third quarter 2007 revenue to be flat as compared to second quarter. This is a reduction from the 3% sequential increase in third quarter revenue expected at the time of the Company's second quarter earnings conference call held in July 2007. This revenue reduction primarily is due to continuing softness in the Gulf of Mexico jackup market, resulting in lower utilization and day rates for the Company's Gulf of Mexico jackup fleet. Revenue also is being negatively impacted by delays in mobilization and commencement of new contracts by two of the Company's international jackup rigs, ENSCO 100 and ENSCO 107, due to scheduling changes necessitated by late arrival of transport vessels. ENSCO 100, which is mobilizing from West Africa, is expected to incur approximately 75 idle days before commencing a contract in the North Sea in early November 2007. It is anticipated that ENSCO 107 will commence a contract in New Zealand by early October 2007 following relocation from Singapore. Although ENSCO 107 will receive a standby or mobilization rate during an estimated 80-day period that commenced mid-July, accounting rules require that this revenue be deferred and recognized over the 240-day term of the contract in New Zealand.
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)