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ENSCO REPORTS 1991 RESULTS

 ENSCO REPORTS 1991 RESULTS
 DALLAS, Feb. 20 /PRNewswire/ -- Energy Service Company,Inc.


(AMEX: ESV) ("ENSCO") reported today that for the 1991 fourth quarter ended Dec. 31, 1991, the company had a loss of $9.2 million which, after preferred stock dividend requirements of $1.4 million, resulted in a loss applicable to common stock of $10.6 million, or $0.10 per share, on 102.1 million average shares outstanding. Revenues for the quarter were $51.7 million. In the fourth quarter of 1990, ENSCO had income from continuing operations of $1.3 million which, after a loss from discontinued operations of $5.5 million and preferred stock dividend requirements of $1.4 million, resulted in a loss applicable to common stock of $5.6 million, or $0.06 per share, on 93.3 million average shares outstanding. Revenues for the 1990 quarter were $50.9 million.
 For the year ended Dec. 31, 1991, ENSCO reported a loss of $8.7 million which, after preferred stock dividend requirements of $4.6 million, resulted in a loss applicable to common stock of $13.3 million, or $0.41 per share, on 97.6 million average shares outstanding. Revenues for 1991 were $207.0 million. For the year 1990, ENSCO had a loss from continuing operations of $1.9 million which, after a loss from discontinued operations of $7.1 million and preferred stock dividend requirements of $4.8 million, resulted in a loss applicable to common stock of $13.8 million, or $0.17 per share on 81.9 million average shares outstanding. Revenues for 1990 were $174.8 million.
 Results for the fourth quarter of 1991 included charges and additions to reserves totalling $5.7 million that were taken to adjust certain balance sheet items to net realizable values and for the cost of combinations of certain operations. These adjustments were made to reflect the rapid deterioration of United States energy industry conditions which became evident in the fourth quarter and have continued into the first quarter of 1992.
 For the 1991 year, revenues advanced 18.4 percent over the prior year revenues with each of ENSCO's four operating divisions reporting increases. The company's operating margin, defined as revenues minus operating expenses excluding depreciation and G & A, was flat in comparison of 1991 with 1990. ENSCO Drilling's operating margin increased 74 percent in 1991 reflecting the addition of the ENSCO VI barge rig in Venezuela to the fleet and higher day rates earned by the existing rigs which more than offset this year's drop in fleet utilizations rate as compared to 1990. ENSCO Tool & Supply's operating loss widened this year over 1990's loss as increased competition due to the decline in drilling activity affected the domestic tubular business and necessitated an inventory write-down of $2.5 million which more than offset gains experienced in international operations. ENSCO Marine's operating margin was essentially flat in 1991 with the prior year margin as a decline in the margin due to lower utilization and day rates for vessels was offset by the operating results of the additional 20 vessels acquired in January 1991. ENSCO Technology experienced the largest year to year decline in operating margin, 81 percent, as horizontal drilling activity in the Austin Chalk trend of Texas declined during 1991.
 Equity in earnings of affiliates of $1.1 million for 1991 includes $300,000 for the company's proportionate share of Penrod's net income after taxes. Penrod is an international offshore contract drilling company based in Dallas. For the fourth quarter, the company's proportionate share of Penrod's net loss was $400,000 which contributed to ENSCO's equity in losses from affiliates of $200,000. ENSCO owned a net 20 percent interest in Penrod during most of 1991, although the company increased its ownership interest to 31.4 percent during the fourth quarter and has an agreement to purchase additional interests, subject to shareholder approval, which would increase the company's net interest in Penrod to 36.3 percent.
 ENSCO, headquartered in Dallas, is engaged in providing contract drilling and related services to the international petroleum industry.
 ENERGY SERVICE COMPANY, INC.
 CONSOLIDATED STATEMENT OF OPERATIONS
 (In thousands, except per share data)
 (Unaudited)
 Periods ended Three Months Twelve Months
 Dec. 31 1991 1990 1991 1990
 Revenues:
 Contract drilling $ 12,738 $ 11,678 $ 52,784 $ 47,168
 Supply operations 29,146 26,017 105,698 85,894
 Marine
 transportation 5,526 4,508 23,437 17,660
 Technical services 4,312 8,650 25,079 24,075
 Total 51,722 50,853 206,998 174,797
 Operating Expenses:
 Contract drilling 9,945 10,225 39,757 39,700
 Supply operations 32,368 26,205 108,060 87,830
 Marine
 transportation 4,527 3,665 17,668 11,852
 Technical services 5,418 6,610 23,885 17,876
 Depreciation and
 amortization 4,065 3,252 15,741 12,068
 General &
 administrative 2,321 2,442 8,876 10,339
 Total 58,374 52,339 213,987 179,665
 Operating loss (6,652) (1,546) (6,989) (4,868)
 Other Income (expense):
 Interest income 237 871 1,699 2,609
 Interest expense (880) (1,040) (4,008) (4,980)
 Gain (loss) on
 disposition of
 assets, net 12 (96) 337 3,143
 Equity in affiliates (229) 3,380 1,078 2,691
 Other, net (1,533) 12 (144) (80)
 Total (2,393) 3,127 (1,038) 3,383
 Income (loss) before
 income taxes (9,045) 1,581 (8,027) (1,485)
 Provision for income
 taxes 104 237 689 434
 Income (loss) from
 cont. operations (9,149) 1,344 (8,716) (1,919)
 Loss from
 discont. operations -- (5,546) -- (7,053)
 Net loss (9,149) (4,202) (8,716) (8,972)
 Preferred stock
 dividends 1,412 1,415 4,607 4,799
 Loss applicable to
 common stock $(10,561) $ (5,617) $(13,323) $(13,771)
 Loss Per Common Share:
 Continuing
 operations $ (0.10) $ (0.00) $ (0.14) $ (0.08)
 Discontinued
 operations $ 0.00 $ (0.06) $ 0.00 $ (0.09)
 Loss to common $ (0.10) $ (0.06) $ (0.14) $ (0.17)
 Weighted average
 common shares
 outstanding 102,136 93,273 97,628 81,872
 -0- 2/20/92
 /CONTACT: G. Allen Brooks of ENSCO, 214-922-1500/
 (ESV) CO: Energy Service Company Inc. ST: Texas IN: OIL SU: ERN AH -- NY034 -- 0906 02/20/92 12:11 EST
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Date:Feb 20, 1992
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