ENSCO Third Quarter 2007 Net Income Spikes 24%
ENSCO reported net income increased by 24% in the quarter ended September 30, 2007, to $266.7 million ($1.82 per diluted share) on revenues of $551.9 million, as compared to net income of $214.8 million ($1.40 per diluted share) on revenues of $486.1 million for the quarter ended September 30, 2006.
Net income for the nine months ended September 30, 2007 was $753.4 million ($5.08 per diluted share) on revenues of $1,614.6 million, compared to net income of $559.3 million ($3.64 per diluted share) on revenues of $1,342.9 million for the nine months ended September 30, 2006.
The average day rate for ENSCO's jackup rig fleet for the quarter ended September 30, 2007, increased by 20% to $143,200, as compared to $119,400 in the prior year quarter. In the most recent quarter, a softer Gulf of Mexico jackup market and downtime related to inspection / mobilization of some of ENSCO's Europe / Africa jackup rigs contributed to a reduction in overall utilization of the Company's jackup fleet to 90% from 97% in the quarter ended September 30, 2006.
During the third quarter of 2007, the Company completed the authorized repurchase of $500.0 million of common stock that commenced in March 2006, and its Board of Directors authorized another $500.0 million for additional stock repurchases. During the third quarter, the Company repurchased 2.5 million shares of its common stock at a total cost of $145.1 million, or an average price of $57.74 per share. In total, ENSCO has repurchased 11.0 million shares of common stock at a cost of $577.5 million, or an average price of $52.65 per share, since March of 2006. The Company had $422.5 million remaining under its current stock repurchase authorization as of September 30, 2007.
Dan Rabun, Chairman, President and Chief Executive Officer, commented on the Company's current results and outlook: "We are pleased that the third quarter was another record for ENSCO. All of our international markets remained strong during the quarter. As previously disclosed, our results were adversely affected by persistent softness in the Gulf of Mexico jackup market and non-revenue mobilization days on two of our international jackups. In addition, we incurred approximately $5.0 million of expense in connection with the conclusion of operations in Nigeria. The results for the quarter ended September 30, 2007 also included a tax benefit of $11.1 million that resulted from the resolution of a prior period uncertain tax position.
"In response to market conditions, we continue to pursue international opportunities for several of our Gulf of Mexico jackup rigs. In this regard, ENSCO 81 is expected to mobilize to Mexico in December for a two-and-one-half year contract with PEMEX. With the relocation of ENSCO 81, 70% of our jackup fleet will be located outside the U.S. Gulf of Mexico.
Manages 64 Offshore Rigs
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- 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)