ENSCO REPORTS RESULTS
ENSCO REPORTS RESULTS DALLAS, July 31 /PRNewswire/ -- Energy Service Company, Inc.
(ENSCO) (AMEX: ESV) reported for the quarter ended June 30, 1992, a net loss of $11.1 million on revenues of $36.1 million, or a loss after preferred stock dividends of $0.10 per share.
Results for the quarter include a $3.9 million restructuring charge discussed below. In the second quarter of 1991, ENSCO had net income of $612,000 on revenues of $53.6 million, or break-even per share. For the first six months of 1992, ENSCO had a net loss of $17 million on revenues of $80.7 million, or a loss after preferred dividends of $0.16 per share. This compares with net income of $2.2 million on revenues of $105.9 million, or break-even per share for the first six months of 1991. Included in the second quarter and six month 1992 operating expense is a $3.9 million charge for restructuring of ENSCO's operations in connection with the reduced activity levels in the energy service industry. The restructuring charge covers the costs associated with work force reductions, the expected loss on the anticipated sale of one of ENSCO Tool and Supply's tubular services plant facilities in Houston as well as increased reserves against inventory and receivables in ENSCO Tool and Supply and ENSCO Technology. Office-based staff has been reduced by 23 percent as a result of the restructuring. The restructuring and other cost savings that have been implemented since the beginning of 1992 are expected to yield savings of $4.1 million on an annualized basis. All four ENSCO divisions experienced revenue declines in the second quarter of 1992 as compared to the prior year period as a result of the continued softness in domestic drilling activity. ENSCO Drilling's revenues for the second quarter of 1992 declined 19 percent from a year ago to $11.7 million as a result of declines in rig utilization and lower day rates. ENSCO Marine's 38-vessel fleet experienced a decline in utilization and day rates which contributed to its 28 percent decline in revenues to $4.2 million. The downturn in domestic drilling, especially natural gas related drilling, had a significant impact on ENSCO Tool and Supply which had a 38 percent decline in revenues to $16.5 million. ENSCO Technology's revenues declined 46 percent to $3.7 million due to depressed domestic horizontal drilling activity. Equity in earnings (losses) of affiliates, which is included in other income (expense), for the second quarter of 1992 was a loss of $0.9 million compared to a profit of $0.2 million last year, primarily reflecting the net loss experienced by Penrod Holding Corporation, a Dallas-based offshore contract drilling company, and ENSCO's increased ownership interest in Penrod. ENSCO holds a 36.3 percent net ownership interest in Penrod. Penrod reported a net loss of $2.6 million for the second quarter of 1992 compared to a profit of $0.7 million for the comparable period in 1991. ENSCO, headquartered in Dallas, is engaged in providing contract drilling and related energy services to the international petroleum industry. ENERGY SERVICE COMPANY, INC. (In thousands, except per share) Three months ended June 30 1992 1991 Revenues $36,066 $53,647 Operating expenses 44,533(A) 53,391 Operating income (loss) (8,467) 256 Other income (expense) (1,751) 909 Income (loss) before taxes (10,218) 1,165 Provision for taxes 836 553 Net income (loss) (11,054) 612 Preferred dividend requirement 1,065 1,065 Loss to common stock (12,119) (453) Loss per share $(0.10) $(0.00) Average shares outstanding 121,080 96,037 (A) -- Includes a restructuring charge of $3.9 million. Six months ended June 30 1992 1991 Revenues $80,672 $105,873 Operating expenses 92,181(A) 104,004 Operating income (loss) (11,509) 1,869 Other income (expense) (4,547) 1,561 Income (loss) before taxes (16,056) 3,430 Provision for taxes 965 1,229 Net income (loss) (17,021) 2,201 Preferred dividend requirement 2,130 2,130 Income (loss) to common stock $(19,151) $71 Income (loss) per share $(0.16) $0.00 Average shares outstanding 118,625 98,520 (A) -- Includes a restructuring charge of $3.9 million. -0- 7/31/92 /CONTACT: G. Allen Brooks of ENSCO, 214-922-1500/ (ESV) CO: Energy Service Company Inc. ST: Texas IN: OIL SU: ERN
CK -- NY036 -- 5561 07/31/92 11:31 EDT
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|Date:||Jul 31, 1992|
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