ENSCO International Reports Fourth Quarter and Full Year 2006 Results.DALLAS -- 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 more than doubled in the quarter ended December 31, 2006, to $210.4 million ($1.39 per diluted share) on revenues of $470.6 million, as compared to net income of $103.6 million ($0.67 per diluted share) on revenues of $311.3 million for the quarter ended December 31, 2005. Income from continuing operations continuing operations Parts 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 December 31, 2006 was $205.7 million ($1.36 per diluted share) compared to $100.1 million ($0.65 per diluted share) in the year earlier quarter. Net income for year ended December 31, 2006 was $769.7 million ($5.04 per diluted share) on revenues of $1,813.5 million, compared to net income of $284.9 million ($1.87 per diluted share) on revenues of $1,034.3 million for the year ended December 31, 2005. Income from continuing operations for the year ended December 31, 2006 was $758.6 million ($4.96 per diluted share) compared to $270.0 million ($1.77 per diluted share) for the year ended December 31, 2005. Fourth quarter results included $4.7 million ($0.03 per diluted share) of income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. related to the operations and sale of ENSCO 25, the Company's former 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 platform rig which was sold late in the fourth quarter. The Company's income tax rate for the fourth quarter decreased to approximately 22%. The lower tax rate for the quarter is due to increased income in lower tax jurisdictions and the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. settlement of several outstanding issues with tax authorities during the quarter. The average day rate for ENSCO's jackup rig fleet for the quarter ended December 31, 2006, increased by 36% to $116,400, as compared to $85,900 in the prior year quarter. Utilization of the Company's jackup fleet increased to 96% in the most recent quarter, as compared to 87% in the quarter ended December 31, 2005. The Company repurchased 1,116,000 shares of its common stock during the fourth quarter of 2006 at a total cost of $53.3 million, or an average price of $47.78 per share, as part of a $500 million share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. authorization. Under the program that commenced late in the first quarter of 2006, ENSCO has repurchased 3,461,000 common shares at a total cost of $160.0 million, or an average price of $46.23 per share, through the fourth quarter of 2006. Dan Rabun, President and Chief Executive Officer of ENSCO, commented on the Company's current results and outlook: "We are pleased to report another excellent quarter and record year. Significantly higher day rates in all markets and an increase in rig operating days contributed to our stronger 2006 results, although a slow down in the Gulf of Mexico jackup market impacted our fourth quarter performance. "Our new rig construction projects remain on schedule and within budget, with three of the four rigs committed upon completion. We expect to take delivery of ENSCO 108, our new ultra-high specification jackup rig, by the end of March. The rig is committed to a term project in Indonesia commencing early in the second quarter 2007. Deliveries of ENSCO 8500 and ENSCO 8501, 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, 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 continue to discuss ENSCO 8502 work opportunities with several prospective customers. "ENSCO 83, one of our 250' water depth capable Gulf of Mexico jackups rigs, is currently in a shipyard for enhancement work and final international outfitting. We expect to complete this project by May, which is approximately two months later than originally scheduled due to additional required steel work on the leg sections. As a result of this additional work, we currently expect to incur a total of approximately 130 shipyard days in 2007, compared to 491 in 2006. We also may outfit additional Gulf of Mexico jackup rigs for international service, which could increase shipyard days in 2007. "We are positive about our 2007 outlook. International jackup markets are strong and are currently undersupplied. Two-thirds of our jackup fleet will be located internationally following mobilization of ENSCO 105 from the Gulf of Mexico to Tunisia and delivery of ENSCO 108. If the Gulf of Mexico jackup market continues to be soft, we believe this will result in further relocation of rigs to stronger international markets, which will tighten supply in the Gulf. "A number of our Europe/Africa and Asia Pacific jackup rigs have realized increases in day rates since the first of the year. As a result, we expect sequential improvement in our first quarter 2007 results. We believe that this day rate improvement, coupled with commencement of ENSCO 108 operations early in the second quarter, will contribute to another record year in 2007." The Company's Board of Directors has set the time and date for the ENSCO 2007 Annual Meeting of Stockholders at 4:30 p.m. C.D.T., on May 22, 2007, at The Crescent Club, Two Hundred Crescent Court, Dallas, TX 75201. Holders of record as of the close of business on March 26, 2007, will be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to vote at the meeting. Statements contained in this news release that state the Company's or management's intentions, hopes, beliefs, expectations, anticipations, projections 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 future earnings expectations, trends in day rates, utilization or rig relocations, future rig rates or utilization, rig enhancement, shipyard work completion, and contract commitments, the period of time and number of rigs that will be in a shipyard, scheduled delivery dates for new rigs, market trends, expectations, outlook or conditions for 2007. It is important to note that our 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 or new technology,(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 created by severe storms and hurricanes, (v) risks associated with offshore rig operations or, rig relocations in general, and in foreign jurisdictions in particular, (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 our rigs undergoing shipyard construction work, repairs or enhancement will enter a shipyard, return to or enter service, (viii) risks inherent to domestic and foreign shipyard rig construction, rig repair or rig enhancement, (ix) unavailability of transport vessels to relocate 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 including hurricane related equipment damage, loss or wreckage wreck·age n. 1. The act of wrecking or the state of being wrecked. 2. Something wrecked. 3. The debris of something wrecked. or debris removal in the U.S. Gulf of Mexico, 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 in whole or in part, (xi) the impact of current and future laws and government regulation affecting the oil and gas industry in general including taxation, our operations in particular, as well as repeal or modification of same, (xii) political and economic uncertainty, (xiii) limited availability When customers of the PSTN make telephone calls, they commonly make use of a telecommunications network called a switched-circuit network. In a switched-circuit network, devices known as switches are used to connect the caller to the callee. of economic insurance coverage for certain perils such as hurricanes in the Gulf of Mexico or removal of wreckage or debris, (xiv) self-imposed 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 our website at http://www.enscous.com. All information in this press release is as of February 22, 2007. 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 Time on Thursday, February 22, 2007, to discuss its fourth quarter and full year 2006 results. The call will be broadcast live over the Internet at www.enscous.com. Interested parties also may listen to the call by dialing (913) 981-4911. We recommend that participants call five to ten minutes before the scheduled start time. A replay of the conference call will be available 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 8173941). A transcript of the call, and access to a replay or MP3 download can be found on-line on the ENSCO web site www.enscous.com in the Investors Section. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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