ENSCO Reports Record Fourth Quarter and Full Year 2005 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 December December: see month. 31, 2005, of $105.9 million ($0.69 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 $314.9 million compared to net income of $38.5 million ($0.26 per diluted share) on revenues of $204.6 million for the quarter ended December 31, 2004. 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, 2005 was $103.1 million ($0.67 per diluted share). For the year ended December 31, 2005, ENSCO's net income was $294.2 million ($1.93 per diluted share) on revenues of $1,046.9 million, compared to net income of $102.8 million ($0.68 per diluted share) on revenues of $740.6 million for the year ended December 31, 2004. Income from continuing operations for the year ended December 31, 2005 was $283.9 million ($1.86 per diluted share). The average day rate for ENSCO's operating jackup rig fleet for the quarter ended December 31, 2005, increased by 49% to $85,750, compared to $57,500 in the prior year quarter. Utilization of the Company's jackup fleet increased slightly to 87% in the most recent quarter, up from 86% in the quarter ended December 31, 2004. Excluding rigs in a shipyard for contract preparation, regulatory inspection and enhancement, ENSCO's jackup utilization was 96% in the quarter ended December 31, 2005, virtually the same as in the prior year quarter. Carl Thorne For people named Thorne, see . , Chairman and Chief Executive Officer of ENSCO The name ENSCO may mean:
adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal record highs for the Company. The quarter was our sixth successive quarter of earnings improvement. Jackup day rates increased from third quarter levels in all of our major markets, most notably in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . "Two of our 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 jackup rigs, ENSCO 86 and ENSCO 87, are currently in shipyards for enhancement and life extension work, and are scheduled for redelivery Re`de`liv´er`y n. 1. Act of delivering back. 2. A second or new delivery or liberation. in April and March 2006, respectively. Redelivery of these two rigs will substantially complete our ten-year, $1.3 billion rig enhancement program. ENSCO 69 is in a shipyard for contract preparation with expected redelivery in March 2006, when it will mobilize mo·bi·lize v. 1. To make mobile or capable of movement. 2. To restore the power of motion to a joint. 3. To release into the body, as glycogen from the liver. 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. for a term contract. ENSCO 7500 also experienced downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. in the fourth quarter in preparation for a new contract, and recommenced work in early February February: see month. . "In Asia Pacific, we recently took delivery of our new ultra-high specification jackup, ENSCO 107, which will soon commence a contract 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. , with follow-on fol·low-on adj. Following as a related or consequent aspect or development: "Such contracts involve follow-on sales of maintenance services" Christian Science Monitor. commitments through mid-summer 2008. We are also completing contract preparatory pre·par·a·to·ry adj. 1. Serving to make ready or prepare; introductory. See Synonyms at preliminary. 2. Relating to or engaged in study or training that serves as preparation for advanced education: work on ENSCO 56, which is scheduled to commence a term contract in New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. in early March. "Construction continues on our new ultra-high specification jackup rig, ENSCO 108, with delivery scheduled for the second quarter of 2007. ENSCO 108 is already committed for work in Southeast Asia commencing in April 2007. "We recently announced construction of our third 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. rig, ENSCO 8501. ENSCO 8501, which is scheduled for delivery in the second quarter of 2009, is being built against a firm three and one half year contract with two large independent oil companies. This is our second announcement for a new ultra-deepwater semisubmersible rig within the last six months. Construction of the first ENSCO 8500 Series(TM) rig, ENSCO 8500, continues on schedule with delivery anticipated in late May 2008. ENSCO 8500 is being built against a firm four-year contract with three large independent oil companies. "Looking ahead, the offshore drilling Offshore drilling typically refers to the act of extracting resources, primarily oil, in an ocean or lake. Controversy As with all oil drilling, there has been a certain level of controversy surrounding the issue. markets continue to improve. Rig availability remains limited, with operating companies operating company A business that engages in transactions with outsiders. contracting rigs well in advance of requirements. Increased operating days resulting from completion of our enhancement program, along with commencement of ENSCO 107 operations, are expected to add meaningfully to our 2006 results. "With the current robust market, the additions to our fleet, and the announced expansion of our management team, these are exciting times for ENSCO." 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 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. or risks 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, 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, affecting the oil and gas industry in general and the Company's operations in particular, (xii) political and economic uncertainty, and (xiii) other risks described from time to time in the Company's SEC filings. Copies of such SEC filings may be obtained at no charge by contacting the Company's investor relations Investor relations 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 February 23, 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 9:00 a.m. Central Time on Thursday Thursday: see week. , February 23, 2006, to discuss its fourth 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 719-457-2617. 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 1471027).
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(In millions, except per share data)
Three Months Twelve Months
Ended Ended
December 31, December 31,
--------------- -----------------
2005 2004 2005 2004
------- ------- --------- -------
OPERATING REVENUES $314.9 $204.6 $1,046.9 $740.6
OPERATING EXPENSES
Contract drilling 123.9 101.8 454.4 406.1
Depreciation and amortization 41.0 34.9 154.8 134.7
General and administrative 6.7 6.4 25.8 26.3
------- ------- --------- -------
171.6 143.1 635.0 567.1
------- ------- --------- -------
OPERATING INCOME 143.3 61.5 411.9 173.5
OTHER INCOME (EXPENSE)
Interest income 2.1 1.2 7.0 3.7
Interest expense, net (6.5) (8.2) (28.8) (36.6)
Other, net (0.5) (0.2) 1.1 (0.7)
------- ------- --------- -------
(4.9) (7.2) (20.7) (33.6)
------- ------- --------- -------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 138.4 54.3 391.2 139.9
PROVISION FOR INCOME TAXES 35.3 15.0 107.3 35.2
------- ------- --------- -------
INCOME FROM CONTINUING OPERATIONS 103.1 39.3 283.9 104.7
DISCONTINUED OPERATIONS 2.8 (0.8) 10.3 (1.9)
------- ------- --------- -------
NET INCOME $105.9 $38.5 $294.2 $102.8
======= ======= ========= =======
EARNINGS (LOSS) PER SHARE -- BASIC
Continuing operations $0.68 $0.26 $1.87 $0.70
Discontinued operations 0.01 -- 0.07 (0.02)
------- ------- --------- -------
$0.69 $0.26 $1.94 $0.68
======= ======= ========= =======
EARNINGS (LOSS) PER SHARE -- DILUTED
Continuing operations $0.67 $0.26 $1.86 $0.70
Discontinued operations 0.02 -- 0.07 (0.02)
------- ------- --------- -------
$0.69 $0.26 $1.93 $0.68
======= ======= ========= =======
AVERAGE COMMON SHARES OUTSTANDING
Basic 152.7 150.6 151.7 150.5
Diluted 153.7 150.9 152.4 150.6
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
(In millions)
December 31, December 31,
2005 2004
------------ ------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $268.5 $267.0
Accounts receivable, net 269.0 183.0
Prepaid expenses and other 40.9 43.7
------------ ------------
Total current assets 578.4 493.7
PROPERTY AND EQUIPMENT, NET 2,663.6 2,431.3
GOODWILL 336.2 341.0
OTHER ASSETS 39.7 56.0
------------ ------------
$3,617.9 $3,322.0
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $214.2 $192.8
Current maturities of long-term debt 17.2 23.0
------------ ------------
Total current liabilities 231.4 215.8
LONG-TERM DEBT 475.4 527.1
DEFERRED INCOME TAXES 345.1 375.3
OTHER LIABILITIES 32.8 21.9
STOCKHOLDERS' EQUITY 2,533.2 2,181.9
------------ ------------
$3,617.9 $3,322.0
============ ============
ENSCO INTERNATIONAL INCORPORATED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In millions)
Twelve Months Ended
December 31,
-------------------
2005 2004
----------- -------
OPERATING ACTIVITIES
Net income $294.2 $102.8
Adjustments to reconcile net income to net cash
provided by operating activities of continuing
operations:
Depreciation and amortization 154.8 134.7
Changes in working capital and other (93.3) 10.3
----------- -------
Net cash provided by operating activities
of continuing operations 355.7 247.8
----------- -------
INVESTING ACTIVITIES
Additions to property and equipment (478.1) (304.5)
Net proceeds from disposal of discontinued
operations 132.9 --
Other 2.6 (8.4)
----------- -------
Net cash used in investing activities (342.6) (312.9)
----------- -------
FINANCING ACTIVITIES
Reduction of long-term borrowings (58.3) (23.0)
Cash dividends paid (15.2) (15.1)
Proceeds from exercise of stock options 67.2 7.8
Other (3.2) (0.4)
----------- -------
Net cash used in financing activities (9.5) (30.7)
----------- -------
Effect of exchange rate fluctuations on cash and
cash equivalents (0.7) (0.9)
Net cash provided (used) by discontinued
operations (1.4) 9.7
----------- -------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1.5 (87.0)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 267.0 354.0
----------- -------
CASH AND CASH EQUIVALENTS, END OF PERIOD $268.5 $267.0
=========== =======
ENSCO INTERNATIONAL INCORPORATED
OPERATING STATISTICS
Third
Fourth Quarter Quarter
-----------------
2005 2004 2005
-------- -------- --------
Contract drilling
-------------------------------------------
Average day rates
Jackup rigs
North America $87,530 $48,352 $69,348
Europe / Africa 99,270 61,779 94,062
Asia Pacific 76,045 63,875 71,895
South America / Caribbean n/a 82,062 n/a
-------- -------- --------
Total jackup rigs 85,750 57,501 75,376
Semisubmersible rig -- N. America 185,987 97,727 185,828
Barge rig -- Asia Pacific 56,492 51,758 51,846
Platform rig -- North America 38,867 n/a 37,788
-------- -------- --------
Total $86,166 $58,448 $77,208
======== ======== ========
Utilization
Jackup rigs
North America 83% 86% 82%
Europe / Africa 100% 93% 100%
Asia Pacific 83% 83% 82%
South America / Caribbean n/a 100% n/a
-------- -------- --------
Total jackup rigs 87% 86% 85%
Semisubmersible rig -- N. America 84% 100% 98%
Barge rig -- Asia Pacific 100% 100% 99%
Platform rig -- North America 96% 100% 100%
-------- -------- --------
Total 87% 87% 86%
======== ======== ========
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