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ENSCO REPORTS 1992 RESULTS

 DALLAS, March 3 /PRNewswire/ -- Energy Service Company, Inc. (ENSCO) (AMEX: ESV) reported today that for the 1992 fourth quarter ended Dec. 31, 1992, the company had a loss of $3.8 million which, after preferred stock dividend requirements of $1.1 million, resulted in a loss applicable to common stock of $4.9 million, or $0.04 per share, on 121.4 million average shares outstanding.
 Revenues, including income from equity affiliates, for the quarter were $41.8 million. In the fourth quarter of 1991, ENSCO had a loss of $9.2 million which, after preferred 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. Comparable revenues for the 1991 fourth quarter were $51.5 million.
 For the year ended Dec. 31, 1992, ENSCO reported a loss of $29.6 million which, after preferred stock dividend requirements of $4.3 million, resulted in a loss applicable to common stock of $33.9 million, or $0.28 per share, on 120.0 million average shares outstanding. Revenues for 1992, including income from equity affiliates, were $157.6 million. For the year 1991, ENSCO had 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 $0.14 per share, on 97.6 million average shares outstanding. Comparable revenues for 1991 were $208.1 million.
 For the 1992 year, operating revenues were $162.0 million, a 21.7 percent decline from $207.0 million in 1991. Operating revenues declined for each of the four ENSCO divisions from the prior year. The operating margin, defined as operating revenues less operating expenses excluding depreciation and general and administrative expenses, of each division also declined in 1992 as compared to 1991. ENSCO Drilling's operating revenues declined from $52.8 million in 1991 to $49.0 million in 1992 and the operating margin declined from $13.0 million to $11.2 million. The decline in revenues and operating margin was primarily the result of lower average day rates and utilization for the company's rigs in 1992 due to continued adverse conditions in the energy industry.
 ENSCO Marine's operating revenues declined from $23.4 million in 1991 to $18.2 million in 1992. The operating margin was a negative $527,000 for 1992 compared to a positive margin of $5.8 million in 1991. The decline in revenues and operating margin in 1992 was primarily the result of lower average day rates and lower utilization of the fleet and mobilization expenses for five vessels from the Gulf of Mexico to Singapore.
 Operating revenues for ENSCO Technology declined from $25.1 million in 1991 to $15.2 million in 1992. The division's operating margin also declined from $1.2 million in 1991 to a negative margin of $2.6 million in 1992. The decline in operating revenues and margin was primarily the result of lower average day rates and lower utilization of the division's specialized drilling crews and equipment.
 ENSCO Tool & Supply's operating revenues declined from $105.7 million in 1991 to $62.6 million in 1992. The division's negative operating margin widened from the 1991 level of $2.4 million to $3.2 million in 1992. The decline in operating revenues was primarily a result of reduced demand for tubular products. The negative operating margin in 1992 was primarily a result of a $3.2 million restructuring charge related to the consolidation of the division's tubular threading facilities.
 Results of ENSCO's equity affiliates, which include the company's 36.3 percent interest in Penrod Holding Corporation, was a loss of $4.4 million in 1992 as compared to income of $1.1 million in 1991. The 1992 loss for Penrod was primarily due to lower average day rates and lower rig utilization. Penrod is an international offshore contract drilling company headquartered in Dallas. For the fourth quarter of 1992, the company's proportionate share of Penrod's net loss was $707,000, which contributed to ENSCO's equity in losses of affiliates of $710,000 for the quarter.
 In addition, the company announced today that ENSCO Drilling Company has entered into an agreement for a $13.3 million revolving line of credit with Christiania Bank og Kreditkasse, London Branch. The company will draw $5.3 million under the new facility to retire debt that would otherwise mature in 1993 and 1994, and the remainder of the revolving credit will be available for general corporate purposes. The new credit facility will replace the company's existing credit facility.
 ENSCO, headquartered in Dallas, is engaged in providing contract drilling and related services to the international petroleum industry. ENSCO's common stock and preferred stock trade on the American Stock Exchange (ESV).
 ENERGY SERVICE COMPANY, INC.
 RESULTS OF OPERATIONS
 (In thousands, except per share data)
 For The Three Months Ended
 December 31,
 1992 1991
 Revenues:
 Operating Revenues $ 45,521 $ 51,722
 Losses from Equity Affiliates (710) (229)
 41,811 51,493
 Operating Expenses 44,445 58,374
 Operating Loss (2,634) (6,881)
 Other Expense, net (222) (2,164)
 Loss Before Tax (2,856) (9,045)
 Income Tax Provision (984) (104)
 Net Loss (3,840) (9,149)
 Preferred Dividends (1,065) (1,412)
 Loss to Common Stock $ (4,905) $(10,561)
 Loss Per Common Share $ (0.04) $ (0.10)
 Avg. Shares Outstanding 121,357 102,136
 For The Years Ended December 31,
 1992 1991
 Revenues:
 Operating Revenues $162,041 $206,998
 Income (Loss) From Equity Affiliates (4,403) 1,078
 157,638 208,076
 Operating Expenses 181,610 213,987
 Operating Loss (23,972) (5,911)
 Other Expense, net (2,846) (2,116)
 Loss Before Tax (26,818) (8,027)
 Income Tax Provision (2,792) (689)
 Net Loss (29,610) (8,716)
 Preferred Dividends (4,260) (4,607)
 Loss to Common Stock $(33,870) $(13,323)
 Loss Per Common Share $ (0.28) $ (0.14)
 Avg. Shares Outstanding 120,010 97,628
 -0- 3/3/93
 /CONTACT: G. Allen Brooks of ENSCO, 214-922-1535/
 (ESV)


CO: Energy Service Company, Inc. ST: Texas IN: OIL SU: ERN

PS -- NY028 -- 2373 03/03/93 10:41 EST
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Date:Mar 3, 1993
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