ENSCO International Reports First Quarter 2006 Results.DALLAS Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. -- ENSCO International ENSCO International is the largest offshore Jack-Up Oil and Gas well drilling corporation [1], with 50 offshore Jack-Up and 5 Semi-submersible drilling rig's servicing domestic US, international, and Scientific drilling markets. Incorporated (NYSE NYSE See: New York Stock Exchange :ESV ESV end-systolic volume. ) reported net income for the quarter ended March 31, 2006 of $149.8 million ($0.97 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share) on revenues of $385.1 million compared to net income of $39.3 million ($0.26 per diluted share) on revenues of $210.6 million for the quarter ended March 31, 2005. First quarter results included a $4.3 million ($0.03 per diluted share) gain from the insurance settlement on ENSCO The name ENSCO may mean:
 Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. last September September: see month. and subsequently declared a
constructive (mathematics) constructive - A proof that something exists is "constructive" if it provides a method for actually constructing it. Cantor's proof that the real numbers are uncountable can be thought of as a *non-constructive* proof that irrational numbers exist. total loss. Income from continuing operations continuing operationsParts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter ended March 31, 2006 was $144.9 million ($0.94 per diluted share). The average day rate for ENSCO's operating jackup rig fleet for the quarter ended March 31, 2006, increased by 72% to $103,400 compared to $60,000 in the prior year quarter. Utilization of the Company's jackup fleet increased to 91% in the most recent quarter, up from 87% in the quarter ended March 31, 2005. Excluding rigs in a shipyard for contract preparation, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. inspection and enhancement, ENSCO's jackup utilization was 99% in the quarter ended March 31, 2006, compared to 95% in the prior year quarter. Carl Thorne For people named Thorne, see . , Chairman and Chief Executive Officer of ENSCO, commented on the Company's current results and outlook: "The average day rate for our jackup fleet exceeded $100,000 for the first time in our 19-year history, and earnings surpassed the previous record level achieved in the fourth quarter of 2005. Reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of the breadth of market breadth of market The underlying strength of stock market movements in an upward or a downward direction. Determining breadth of market is important to technical analysts when they forecast whether a given market movement is likely to persist. strength, jackup day rates increased from fourth quarter levels in all of our major markets. "This month, we will substantially complete our 10-year, $1.3 billion rig enhancement and life extension program with redelivery Re`de`liv´er`y n. 1. Act of delivering back. 2. A second or new delivery or liberation. of two Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east jackups. ENSCO 87 commenced work on April 1 following its upgrade and ENSCO 86 should return to service by the end of this month following recommissioning. ENSCO 69 is en route to Venezuela Venezuela (vĕnəzwā`lə, Span. vānāswā`lä), officially the Bolivarian Republic of Venezuela, republic (2005 est. pop. 25,375,000), 352,143 sq mi (912,050 sq km), N South America. after having completed contract preparation work and should commence its term contract by mid-May n. 1. the middle part of May. Noun 1. mid-May - the middle part of May period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" . "Construction continues on our new ultra-high specification jackup rig, ENSCO 108, with delivery scheduled for the second quarter of 2007. The rig is already committed for work in Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. following delivery. "Construction continues on our two ultra-deepwater semisubmersible sem·i·sub·mers·i·ble n. A seagoing, self-propelled barge that rides at anchor, stands on partially submerged vertical legs on submerged pontoons, and serves as living quarters and a base of operations in offshore drilling. rigs, ENSCO 8500 and ENSCO 8501. ENSCO 8500 is scheduled for delivery in the second quarter of 2008, and ENSCO 8501's delivery is anticipated in the second quarter of 2009. Both rigs are being built against firm multi-year contracts. "Global rig availability remains limited, with many requirements unable to be filled until 2007 or 2008. Increased operating days resulting from completion of our enhancement program and the addition of ENSCO 107 earlier this year, coupled with the contract rollover A graphic element in an application or on a Web page that changes its color or shape when the pointer is moved (rolled) over it. See JavaScript rollover. See also n-key rollover. of many rigs to leading edge fixtures, are currently expected to add meaningfully to our prospective 2006 results." Statements contained in this news release that state the Company's or management's intentions, hopes, beliefs, expectations, anticipations or predictions of the future are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements include references to trends in day rates or utilization, future rig utilization and contract commitments, the period of time and number of rigs that will be in a shipyard, scheduled delivery dates for new rigs, and market trends, outlook, or conditions. 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, including changes in rig supply and demand, (ii) cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of the industry, (iii) worldwide expenditures for oil and gas drilling, (iv) operational risks, including hazards
Hazards is an independent, union-friendly magazine based in Sheffield, England, which has won major international awards. created by severe storms and hurricanes, (v) risks associated with operating, rig building and rig enhancement in foreign jurisdictions, (vi) renegotiation, nullification nullification, in U.S. history, a doctrine expounded by the advocates of extreme states' rights. It held that states have the right to declare null and void any federal law that they deem unconstitutional. , or breach of contracts with customers or other parties, (vii) changes in the dates the Company's rigs undergoing shipyard construction work or enhancement will enter a shipyard or return to service, (viii) risks inherent to shipyard rig construction or rig enhancement, (ix) availability of transport vessels to relocate re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. rigs, (x) environmental or other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. , risks, or losses that may arise in the future which are not covered not covered Health care adjective Referring to a procedure, test or other health service to which a policy holder or insurance beneficiary is not entitled under the terms of the policy or payment system–eg, Medicare. Cf Covered. by insurance or indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. in whole or in part, (xi) the impact of current and future laws and government regulation affecting the oil and gas industry in general and the Company's operations in particular, as well as repeal The Annulment or abrogation of a previously existing statute by the enactment of a later law that revokes the former law. The revocation of the law can either be done through an express repeal or modification of same, (xii) political and economic uncertainty, (xiii) lack of availability of economic insurance coverage for certain perils such as hurricanes in the Gulf of Mexico, (xiv) self-imposed self-im·posed adj. Imposed by oneself on oneself; voluntarily assumed or endured: self-imposed exile. Adj. 1. or regulatory limitations on jackup rig drilling locations in the Gulf of Mexico during hurricane season Hurricane season refers to a period in a year when hurricanes usually form. For more information see: Tropical cyclone#Times of formation. For a lists of past seasons, see:
The process by which the corporation communicates with its investors. department at 214-397-3045 or by referring to the investor relations section of the Company's website at http://www.enscous.com. All information in this press release is as of April 25, 2006. The Company undertakes no duty to update any forward-looking statement, to conform the statement to actual results, or reflect changes in the Company's expectations. ENSCO, headquartered in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. , provides contract drilling services to the global petroleum industry. ENSCO will conduct a conference call at 10:00 a.m. Central Daylight Time on Tuesday Tuesday: see week. , April 25, 2006, to discuss its first quarter results. The call will be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.enscous.com. Interested parties also may listen to the call by dialing 719-457-2727. We recommend 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 Adv. 1. for 24 hours - without stopping; "she worked around the clock" around the clock, round the clock after the call by dialing 719-457-0820 (access code 3349234).
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share data)
(Unaudited)
Three Months
Ended
March 31,
----------------
2006 2005
------- --------
OPERATING REVENUES $385.1 $210.6
OPERATING EXPENSES
Contract drilling 130.0 108.6
Depreciation and amortization 42.4 36.6
General and administrative 10.4 8.0
------- --------
182.8 153.2
------- --------
OPERATING INCOME 202.3 57.4
OTHER INCOME (EXPENSE)
Interest income 2.3 1.1
Interest expense, net (4.2) (7.8)
Other, net (1.7) 3.8
------- --------
(3.6) (2.9)
------- --------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 198.7 54.5
PROVISION FOR INCOME TAXES 53.8 15.7
------- --------
INCOME FROM CONTINUING OPERATIONS 144.9 38.8
DISCONTINUED OPERATIONS, NET 4.3 0.5
CUMULATIVE EFFECT OF ACCOUNTING
CHANGE, NET 0.6 --
------- --------
NET INCOME $149.8 $39.3
======= ========
EARNINGS PER SHARE - BASIC
Continuing operations $0.95 $0.26
Discontinued operations 0.03 --
Cumulative effect of accounting change -- --
------- --------
$0.98 $0.26
======= ========
EARNINGS PER SHARE - DILUTED
Continuing operations $0.94 $0.26
Discontinued operations 0.03 --
Cumulative effect of accounting change -- --
------- --------
$0.97 $0.26
======= ========
AVERAGE COMMON SHARES OUTSTANDING
Basic 152.9 150.9
Diluted 153.7 151.5
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
March 31, December 31,
2006 2005
----------- -------------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $251.1 $268.5
Accounts receivable, net 293.7 269.0
Prepaid expenses and other 44.5 40.9
----------- -------------
Total current assets 589.3 578.4
PROPERTY AND EQUIPMENT, NET 2,846.3 2,663.6
GOODWILL 336.2 336.2
OTHER ASSETS, NET 46.9 46.5
----------- -------------
$3,818.7 $3,624.7
=========== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $258.3 $214.2
Current maturities of long-term debt 17.2 17.2
----------- -------------
Total current liabilities 275.5 231.4
LONG-TERM DEBT 475.4 475.4
DEFERRED INCOME TAXES 343.0 345.1
OTHER LIABILITIES 32.5 32.8
STOCKHOLDERS' EQUITY 2,692.3 2,540.0
----------- -------------
$3,818.7 $3,624.7
=========== =============
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
(Unaudited)
Three Months
Ended
March 31,
---------------
2006 2005
------- -------
OPERATING ACTIVITIES
Net income $149.8 $39.3
Adjustments to reconcile net income to net cash
provided by operating activities of continuing
operations:
Depreciation and amortization 42.4 36.6
Changes in working capital and other 25.9 23.9
------- -------
Net cash provided by operating activities of
continuing operations 218.1 99.8
------- -------
INVESTING ACTIVITIES
Additions to property and equipment (245.6) (146.6)
Net proceeds from disposal of discontinued
operations 10.0 --
Other 1.2 (1.8)
------- -------
Net cash used in investing activities (234.4) (148.4)
------- -------
FINANCING ACTIVITIES
Reduction of long-term borrowings -- (2.9)
Cash dividends paid (3.9) (3.8)
Proceeds from exercise of stock options 12.9 19.0
Repurchase of common stock (11.7) --
Other 0.8 (1.6)
------- -------
Net cash provided by (used in) financing
activities (1.9) 10.7
------- -------
Effect of exchange rate fluctuations on cash and cash
equivalents 0.7 (0.4)
Net cash provided by discontinued operations 0.1 2.0
------- -------
DECREASE IN CASH AND CASH EQUIVALENTS (17.4) (36.3)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 268.5 267.0
------- -------
CASH AND CASH EQUIVALENTS, END OF PERIOD $251.1 $230.7
======= =======
A[micro] Effective January 1, 2006, the Company adopted Financial
Accounting Standards No. 123, (revised 2004) "Share-Based Payment,"
using the modified-retrospective transition method. Accordingly,
compensation expense recognized in prior periods has been restated to
include share option compensation expense previously reported on a pro
forma basis in the Company's financial statement footnotes.
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
Fourth
First Quarter Quarter
------------------
2006 2005 2005
--------- -------- ---------
Contract drilling
------------------------
Average day rates
Jackup rigs
North and South America $115,960 $54,401 $87,530
Europe / Africa 134,061 64,501 99,270
Asia Pacific 80,383 64,645 76,045
--------- -------- ---------
Total jackup rigs 103,379 59,963 85,750
Semisubmersible rig - N. America 189,191 122,618 185,987
Barge rig - Asia Pacific 55,870 50,031 56,492
Platform rig - North America 35,951 29,304 38,867
--------- -------- ---------
Total $103,184 $60,709 $86,166
========= ======== =========
Utilization
Jackup rigs
North and South America 81% 89% 83%
Europe / Africa 100% 87% 100%
Asia Pacific 96% 85% 83%
--------- -------- ---------
Total jackup rigs 91% 87% 87%
Semisubmersible rig - N. America 59% 69% 84%
Barge rig - Asia Pacific 100% 99% 100%
Platform rig - North America 100% 100% 96%
--------- -------- ---------
Total 91% 87% 87%
========= ======== =========
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