ENSCO Reports First Quarter Results

Apr 18, 2001, 01:00 ET from ENSCO International Incorporated

    DALLAS, April 18 /PRNewswire/ -- ENSCO International Incorporated
 (NYSE:   ESV) reported net income of $46.9 million ($.34 per diluted share) on
 revenues of $195.3 million for the three months ended March 31, 2001, compared
 to net income of $3.1 million ($.02 per diluted share) on revenues of
 $96.2 million for the year earlier quarter.
     The average day rate for ENSCO's jackup rig fleet was $47,500 for the
 first quarter of 2001, compared to $28,100 in the year earlier period, an
 improvement of 69%.  Utilization for the Company's jackup fleet increased to
 92% in the most recent quarter, from 77% in the first quarter of 2000.
     In the Company's marine transportation segment, average day rates for the
 Company's marine fleet increased to $7,600 in the first quarter of 2001 from
 $4,500 in the year earlier period, an improvement of 68%.  Utilization for the
 marine fleet improved to 77% in the quarter ended March 31, 2001 from 60% in
 the first quarter of 2000.
     Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on
 the Company's recent results and outlook, "Our first quarter results improved
 significantly from year earlier levels, and were in line with our
 expectations.  Given the continued strength of the domestic offshore rig
 market, and steady improvement in international markets, we believe that
 supply and demand for premium jackup rigs are reaching global equilibrium.  As
 markets come into balance, we anticipate further improvement in our results,
 and that our second quarter earnings per share will increase by approximately
 20% to 25% over that reported in the first quarter."
     Statements contained in this press release that state the Company's or
 management's intentions, hopes, beliefs, expectations or predictions of the
 future are forward-looking statements.  It is important to note that the
 Company's actual results could differ materially from those projected in such
 forward-looking statements.  The factors that could cause actual results to
 differ materially from those in the forward-looking statements include the
 following:  (i) industry conditions and competition, (ii) cyclical nature of
 the industry, (iii) worldwide expenditures for oil and gas drilling, (iv)
 operational risks and insurance, (v) risks associated with operating in
 foreign jurisdictions, (vi) environmental liabilities which may arise in the
 future which are not covered by insurance or indemnity, (vii) the impact of
 current and future laws and government regulation, as well as repeal or
 modification of same, affecting the oil and gas industry and the Company's
 operations in particular, (viii) changes in the dates the Company's rigs being
 constructed or undergoing enhancement will enter service, (ix) renegotiation,
 nullification, or breach of contracts with customers or other parties, and
 (x) the risks described from time to time in the Company's SEC filings.
 Copies of such filings may be obtained by contacting the Company or the SEC.
     The Company disclaims any obligation or undertaking to disseminate any
 updates or revisions to any forward-looking statements to reflect any change
 in the Company's expectations or any change in events, conditions or
 circumstances on which any such statements are based.
     ENSCO, headquartered in Dallas, Texas, provides contract drilling and
 marine transportation services to the international petroleum industry.
 
     ENSCO will conduct a conference call at 9:00 a.m. Central Time on
 Wednesday, April 18, 2001, to discuss its first quarter results.  The call
 will be broadcast live over the Internet at www.enscous.com and at
 www.streetfusion.com.  Interested parties may also listen to the call by
 dialing 781-482-0075.  It is recommended that participants call five to ten
 minutes before the scheduled start time.
     A replay of the conference call will be available on ENSCO's web site
 www.enscous.com, or by phone for 24 hours after the call by dialing
 703-925-2505 (access number 5097897).
 
                          ENSCO INTERNATIONAL INCORPORATED
                        CONSOLIDATED STATEMENT OF OPERATIONS
                                    (Unaudited)
                        (In millions, except per share data)
 
                                                        Three Months Ended
                                                             March 31,
                                                        2001           2000
 
     OPERATING REVENUES                               $195.3         $ 96.2
 
     EXPENSES
          Operating expenses                            89.6           63.8
          Depreciation and amortization                 28.9           23.5
          General and administrative                     3.7            3.1
                                                       122.2           90.4
 
     OPERATING INCOME                                   73.1            5.8
 
     OTHER INCOME (EXPENSE)
          Interest income                                2.3            2.0
          Interest expense, net                         (8.3)          (3.0)
          Other, net                                     0.2            0.1
                                                        (5.8)          (0.9)
 
     INCOME BEFORE INCOME TAXES                         67.3            4.9
 
     PROVISION FOR INCOME TAXES                         20.4            1.8
 
     NET INCOME                                       $ 46.9         $  3.1
 
 
     EARNINGS PER SHARE
          Basic                                       $ 0.34         $ 0.02
          Diluted                                     $ 0.34         $ 0.02
 
 
     AVERAGE COMMON SHARES OUTSTANDING
          Basic                                        138.2          136.9
          Diluted                                      139.7          138.6
 
 
                          ENSCO INTERNATIONAL INCORPORATED
                             CONSOLIDATED BALANCE SHEET
                                   (In millions)
 
 
                                                    March 31,     December 31,
                                                      2001            2000
                                                   (Unaudited)
 
                   ASSETS
 
     CURRENT ASSETS
        Cash and cash equivalents                   $  209.8       $  106.6
        Accounts receivable, net                       152.9          159.1
        Prepaid expenses and other                      23.4           23.0
           Total current assets                        386.1          288.7
 
     PROPERTY AND EQUIPMENT, NET                     1,678.4        1,685.3
 
     OTHER ASSETS, NET                                 126.4          134.0
 
                                                    $2,190.9       $2,108.0
 
 
        LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES
        Accounts payable and accrued
         liabilities                                $   86.5       $  104.4
        Current maturities of long-term
         debt                                           12.7           12.7
           Total current liabilities                    99.2          117.1
 
     LONG-TERM DEBT                                    474.9          422.2
 
     DEFERRED INCOME TAXES                             237.2          230.3
 
     OTHER LIABILITIES                                   9.6            9.5
 
     STOCKHOLDERS' EQUITY                            1,370.0        1,328.9
 
                                                    $2,190.9       $2,108.0
 
 
                         ENSCO INTERNATIONAL INCORPORATED
                               OPERATING STATISTICS
 
 
                                                                      Fourth
                                                 First Quarter        Quarter
                                               2001        2000        2000
     Contract drilling
     Average day rates
        Jackup rigs
           North America                     $49,151     $26,045     $44,940
           Europe                             50,903      34,538      42,119
           Asia Pacific                       37,847      35,761      37,362
              Total jackup rigs               47,529      28,084      43,137
        Semisubmersible rig - N. America     179,561         n/a     173,905
        Barge rigs - South America            45,282      39,341      41,099
        Platform rigs                         26,590      21,316      27,097
              Total                          $47,736     $28,645     $42,105
 
     Utilization
        Jackup rigs
           North America                         98%         99%         99%
           Europe                                82%         14%         76%
           Asia Pacific                          85%         69%         83%
              Total jackup rigs                  92%         77%         91%
        Semisubmersible rig - N. America         80%         n/a         77%
        Barge rigs - South America               33%         33%         33%
        Platform rigs                            57%         48%         57%
              Total                              77%         65%         77%
 
 
     Marine transportation
     Average day rates
        AHTS                                 $11,607     $13,479     $11,758
        Supply                                 6,999       2,991       5,472
        Mini-supply                              n/a       1,889         n/a
             Total                            $7,606      $4,522      $6,425
 
     Utilization
        AHTS                                     57%         55%         65%
        Supply                                   81%         69%         79%
        Mini-supply                              n/a         23%         n/a
             Total                               77%         60%         75%
 
 
                          ENSCO INTERNATIONAL INCORPORATED
                                  SEGMENT RESULTS
                                    (Unaudited)
                                   (In millions)
 
 
                                                                        Fourth
                                                  First Quarter         Quarter
                                                2001        2000         2000
 
     OPERATING REVENUES
         Contract drilling                     $180.5       $88.1       $158.5
         Marine transportation                   14.8         8.1         12.7
             Total segment revenues             195.3        96.2        171.2
 
 
     OPERATING EXPENSES*
         Contract drilling                       80.4        56.6         70.0
         Marine transportation                    9.2         7.2          8.1
             Total segment expenses              89.6        63.8         78.1
 
 
     OPERATING MARGINS*
         Contract drilling                      100.1        31.5         88.5
         Marine transportation                    5.6         0.9          4.6
             Total segment margins             $105.7       $32.4        $93.1
 
     *Exclusive of depreciation and amortization and general and administrative
      expenses.
 
 

SOURCE ENSCO International Incorporated
    DALLAS, April 18 /PRNewswire/ -- ENSCO International Incorporated
 (NYSE:   ESV) reported net income of $46.9 million ($.34 per diluted share) on
 revenues of $195.3 million for the three months ended March 31, 2001, compared
 to net income of $3.1 million ($.02 per diluted share) on revenues of
 $96.2 million for the year earlier quarter.
     The average day rate for ENSCO's jackup rig fleet was $47,500 for the
 first quarter of 2001, compared to $28,100 in the year earlier period, an
 improvement of 69%.  Utilization for the Company's jackup fleet increased to
 92% in the most recent quarter, from 77% in the first quarter of 2000.
     In the Company's marine transportation segment, average day rates for the
 Company's marine fleet increased to $7,600 in the first quarter of 2001 from
 $4,500 in the year earlier period, an improvement of 68%.  Utilization for the
 marine fleet improved to 77% in the quarter ended March 31, 2001 from 60% in
 the first quarter of 2000.
     Carl Thorne, Chairman and Chief Executive Officer of ENSCO, commented on
 the Company's recent results and outlook, "Our first quarter results improved
 significantly from year earlier levels, and were in line with our
 expectations.  Given the continued strength of the domestic offshore rig
 market, and steady improvement in international markets, we believe that
 supply and demand for premium jackup rigs are reaching global equilibrium.  As
 markets come into balance, we anticipate further improvement in our results,
 and that our second quarter earnings per share will increase by approximately
 20% to 25% over that reported in the first quarter."
     Statements contained in this press release that state the Company's or
 management's intentions, hopes, beliefs, expectations or predictions of the
 future are forward-looking statements.  It is important to note that the
 Company's actual results could differ materially from those projected in such
 forward-looking statements.  The factors that could cause actual results to
 differ materially from those in the forward-looking statements include the
 following:  (i) industry conditions and competition, (ii) cyclical nature of
 the industry, (iii) worldwide expenditures for oil and gas drilling, (iv)
 operational risks and insurance, (v) risks associated with operating in
 foreign jurisdictions, (vi) environmental liabilities which may arise in the
 future which are not covered by insurance or indemnity, (vii) the impact of
 current and future laws and government regulation, as well as repeal or
 modification of same, affecting the oil and gas industry and the Company's
 operations in particular, (viii) changes in the dates the Company's rigs being
 constructed or undergoing enhancement will enter service, (ix) renegotiation,
 nullification, or breach of contracts with customers or other parties, and
 (x) the risks described from time to time in the Company's SEC filings.
 Copies of such filings may be obtained by contacting the Company or the SEC.
     The Company disclaims any obligation or undertaking to disseminate any
 updates or revisions to any forward-looking statements to reflect any change
 in the Company's expectations or any change in events, conditions or
 circumstances on which any such statements are based.
     ENSCO, headquartered in Dallas, Texas, provides contract drilling and
 marine transportation services to the international petroleum industry.
 
     ENSCO will conduct a conference call at 9:00 a.m. Central Time on
 Wednesday, April 18, 2001, to discuss its first quarter results.  The call
 will be broadcast live over the Internet at www.enscous.com and at
 www.streetfusion.com.  Interested parties may also listen to the call by
 dialing 781-482-0075.  It is recommended that participants call five to ten
 minutes before the scheduled start time.
     A replay of the conference call will be available on ENSCO's web site
 www.enscous.com, or by phone for 24 hours after the call by dialing
 703-925-2505 (access number 5097897).
 
                          ENSCO INTERNATIONAL INCORPORATED
                        CONSOLIDATED STATEMENT OF OPERATIONS
                                    (Unaudited)
                        (In millions, except per share data)
 
                                                        Three Months Ended
                                                             March 31,
                                                        2001           2000
 
     OPERATING REVENUES                               $195.3         $ 96.2
 
     EXPENSES
          Operating expenses                            89.6           63.8
          Depreciation and amortization                 28.9           23.5
          General and administrative                     3.7            3.1
                                                       122.2           90.4
 
     OPERATING INCOME                                   73.1            5.8
 
     OTHER INCOME (EXPENSE)
          Interest income                                2.3            2.0
          Interest expense, net                         (8.3)          (3.0)
          Other, net                                     0.2            0.1
                                                        (5.8)          (0.9)
 
     INCOME BEFORE INCOME TAXES                         67.3            4.9
 
     PROVISION FOR INCOME TAXES                         20.4            1.8
 
     NET INCOME                                       $ 46.9         $  3.1
 
 
     EARNINGS PER SHARE
          Basic                                       $ 0.34         $ 0.02
          Diluted                                     $ 0.34         $ 0.02
 
 
     AVERAGE COMMON SHARES OUTSTANDING
          Basic                                        138.2          136.9
          Diluted                                      139.7          138.6
 
 
                          ENSCO INTERNATIONAL INCORPORATED
                             CONSOLIDATED BALANCE SHEET
                                   (In millions)
 
 
                                                    March 31,     December 31,
                                                      2001            2000
                                                   (Unaudited)
 
                   ASSETS
 
     CURRENT ASSETS
        Cash and cash equivalents                   $  209.8       $  106.6
        Accounts receivable, net                       152.9          159.1
        Prepaid expenses and other                      23.4           23.0
           Total current assets                        386.1          288.7
 
     PROPERTY AND EQUIPMENT, NET                     1,678.4        1,685.3
 
     OTHER ASSETS, NET                                 126.4          134.0
 
                                                    $2,190.9       $2,108.0
 
 
        LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES
        Accounts payable and accrued
         liabilities                                $   86.5       $  104.4
        Current maturities of long-term
         debt                                           12.7           12.7
           Total current liabilities                    99.2          117.1
 
     LONG-TERM DEBT                                    474.9          422.2
 
     DEFERRED INCOME TAXES                             237.2          230.3
 
     OTHER LIABILITIES                                   9.6            9.5
 
     STOCKHOLDERS' EQUITY                            1,370.0        1,328.9
 
                                                    $2,190.9       $2,108.0
 
 
                         ENSCO INTERNATIONAL INCORPORATED
                               OPERATING STATISTICS
 
 
                                                                      Fourth
                                                 First Quarter        Quarter
                                               2001        2000        2000
     Contract drilling
     Average day rates
        Jackup rigs
           North America                     $49,151     $26,045     $44,940
           Europe                             50,903      34,538      42,119
           Asia Pacific                       37,847      35,761      37,362
              Total jackup rigs               47,529      28,084      43,137
        Semisubmersible rig - N. America     179,561         n/a     173,905
        Barge rigs - South America            45,282      39,341      41,099
        Platform rigs                         26,590      21,316      27,097
              Total                          $47,736     $28,645     $42,105
 
     Utilization
        Jackup rigs
           North America                         98%         99%         99%
           Europe                                82%         14%         76%
           Asia Pacific                          85%         69%         83%
              Total jackup rigs                  92%         77%         91%
        Semisubmersible rig - N. America         80%         n/a         77%
        Barge rigs - South America               33%         33%         33%
        Platform rigs                            57%         48%         57%
              Total                              77%         65%         77%
 
 
     Marine transportation
     Average day rates
        AHTS                                 $11,607     $13,479     $11,758
        Supply                                 6,999       2,991       5,472
        Mini-supply                              n/a       1,889         n/a
             Total                            $7,606      $4,522      $6,425
 
     Utilization
        AHTS                                     57%         55%         65%
        Supply                                   81%         69%         79%
        Mini-supply                              n/a         23%         n/a
             Total                               77%         60%         75%
 
 
                          ENSCO INTERNATIONAL INCORPORATED
                                  SEGMENT RESULTS
                                    (Unaudited)
                                   (In millions)
 
 
                                                                        Fourth
                                                  First Quarter         Quarter
                                                2001        2000         2000
 
     OPERATING REVENUES
         Contract drilling                     $180.5       $88.1       $158.5
         Marine transportation                   14.8         8.1         12.7
             Total segment revenues             195.3        96.2        171.2
 
 
     OPERATING EXPENSES*
         Contract drilling                       80.4        56.6         70.0
         Marine transportation                    9.2         7.2          8.1
             Total segment expenses              89.6        63.8         78.1
 
 
     OPERATING MARGINS*
         Contract drilling                      100.1        31.5         88.5
         Marine transportation                    5.6         0.9          4.6
             Total segment margins             $105.7       $32.4        $93.1
 
     *Exclusive of depreciation and amortization and general and administrative
      expenses.
 
 SOURCE  ENSCO International Incorporated